Metal thieves are holding society to ransom without fear of being caught, a senior MP has said as new laws to tackle the scourge were debated in the Commons.

Under the proposals, scrap yards run by rogue dealers would be closed and cash payments would be banned for all scrap metal transactions.

Tory Richard Ottaway, who is steering the legislation through the Commons, said the Association of Chief Police Officers had estimated the cost of metal theft to the UK economy to be more than £750 million but the MP said "in all honesty, the reality is probably much higher".

While thefts of plaques from war memorials and graves cause emotional harm, cable stolen from railways, telecommunications and electrical infrastructure sites cause chaos and hit the pockets of thousands of people.

In December last year, the theft of cable from a generator at Llandough Hospital near Cardiff resulted in operations being cancelled.

Last year, 36,000 train services were delayed or cancelled as a result of cable theft.

Mr Ottaway said: "This isn't petty theft, it's an industry with criminals holding our society to ransom. Why? Because they see metal theft as a soft target.

"The police tell us that metal theft is emerging as a new acquisitive crime. It's a low risk enterprise with plenty of vulnerable targets to plunder. Around 80% of people linked to cable theft live within six miles of the crime location. Clearly they have no fear of being caught. The surge is being driven partly by the low risk of detection."

As a result of high commodity prices, police are dealing with a massive rise in metal theft, which now accounts for 10% of all crime in some areas. British Transport Police estimated that a record number of people - more than 12 - were killed last year in metal theft-related incidents, such as being electrocuted while stealing railway cable.

Mr Ottaway's Bill would give councils the power to refuse to grant licences to scrap metal dealers or revoke existing licences.