A EURO MP for the North West is pressing for dodgy scrap dealers to be put out of business in a bid to raise recycling levels.

Chris Davies, MEP, says a loophole in the End of Life Vehicles directive, introduced in 2003, means 50 per cent of all cars destined for scrap are not being properly depolluted by licensed operators.

The legislation means cars set to be scrapped must be decontaminated at an Authorised Treatment Facility (ATF) where contaminents such as oil, brake fluid, tyres and airbags are removed and disposed of properly.

But an estimated 200,000 cars per year are being unlawfully collected - damaging the businesses of those who have invested in the correct equipment to be registered by The Environment Agency.

Mr Davies has accused the DVLA of maintaining the loophole, which allows car owners to simply tick a box to declare their car has been scrapped without verification.

He said: "This law is good news for the environment but the entire scheme is undermined if these people can simply carry on letting oil and brake fluids wash down the nearest drain.

"Ministers are allowing criminals to run rings around them at the expense of the environment and the Business, Enterprise and Regulatory Reform organisation is allowing legitimate businesses to go to the wall."