Hulse said progress had been made in determining how vehicles should be dismantled but there had been no firm word from the government on how the operation would be funded or which recycling plants would be eligible to apply for permits.

The ELV directive, which offers EU member states some leeway in how to apply it, is part of a series of legal measures to reduce the amount of landfill waste from vehicles, home appliances or packaging by raising recycling rates.

WAITING FOR ANSWERS

Britain's Department for the Environment, Food and Rural Affairs (DEFRA) wants sites to have faciliites in place before they apply for a permit, but most companies are loth to invest in new facilities without knowing how costs will be covered.

"We are extremely worried about the situation in which we find ourselves with the government," Hulse said.

Recyclers said they were hoping to have an answer from the government by May and that legislation would probably be voted in July outlining the criteria for the award of permits.

"By July there will be very few people to apply because they haven't made the investment to build the facilities," one said.

"By far the majority of the industry will not be applying in July, they will be applying later, whether or not we can work out a mechanism for funding," he said.

The UK Department of Trade and Industry (DTI) issued a consultation document in October 2001 on the award of permits for treatment facilities and offered proposals for three separate payment schemes.