Motorists will have to continue to pay between �50 and �100 to scrap their old cars after a government decision to delay a recycling scheme financed by the motor industry.

The scheme, which would have seen manufacturers foot the bill for recycling of all vehicles, was meant to launch in April this year but lobbying by the motor industry has seen the start date rolled back to 2007.

Christopher McGowan, chief executive of the Society of Motor Manufacturers and Traders, said despite the reprieve his industry is still not happy.

He claimed the government is not addressing the real problems of recycling.

Open and competitive

Mr McGowan said: "The recycling industry is not as open and competitive as we would like. In essence if there is a car that does have a value to it, it should be easier for the consumer to realise that value."

Christopher McGowan of the SMMT

Many car manufacturers within the European Union are obliged to pay for the cost of recycling under a ruling called the "end of life" (ELV) directive.

The directive was meant to force the motor industry to pay for the recycling costs of new vehicles from April this year.

From 2007 they were expected to pay for the recycling of all vehicles.

Lobbying

The government's decision means that this will come into effect in 2007 at the earliest.

But it may not happen even then.

Manufacturing giants such as Ford, Vauxhall and MG Rover are now campaigning against the 2007 deadline.

They insist that motorists should share some of the responsibility and costs of recycling or the car industry will suffer.

Lobbyists in France and Germany have succeeded in postponing the start date until 2007.

Wrecks

The annual cost of scrapping old vehicles in the UK is about �450m.

Environmental groups and local authorities say that the failure to push the directive through will cost the country more in the long run.

They warn that forcing motorists to pay will lead to an increase in abandoned wrecks.

About two million cars are scrapped each year. Some 20% - about 350,000 - are dumped.

The government says it's planning to strengthen licensing controls and computer records in order to trace owners who dump cars.

It will also levy fines on motorists who fail to pay recycling and dismantling costs.