Meacher: Working with stakeholders

Last month the government admitted it had no "immediate solution" to the problem.

The funding announced on Wednesday is to help councils to keep old fridges in storage.

Standards have also been developed for the CFC removal process, giving the green light to companies invest in the apparatus needed for removal of fridge lining.

There is no need for householders to worry about disposing of their old fridge

Michael Meacher, Environment Minister

But the Department for Environment, Food and Rural Affairs admits it could still take up to six months before for this is up and running.

Environment Minister Michael Meacher said on Wednesday: "There is no need for householders to worry about disposing of their old fridge.

'Fridges could be dumped'

"We have been working with all stakeholders to ensure there is as little disruption to householders as possible when the new requirements come into force on 1 January 2002 and to ensure old fridges will be disposed of safely."

Major fridge retailers, including Currys and John Lewis have cancelled their service to customers to take away old fridges, due to a storage problem.

The government's snail pace on this issue will cost us dearly

Malcolm Bruce, Liberal Democrats

They fear the problem will escalate in the New Year - a peak selling time for new fridges.

Lesley Smith, from Currys, said: "If it's down to some people to contact their local council instead, many people don't bother, so you could find a situation where fridges are left dumped."

Mr Meacher said on Wednesday: "If a retailer cannot be found who will take an old fridge away, local authorities will accept the fridge at the civic amenity site, free of charge.

"Local authorities will also collect from homes, but they can charge to cover the cost of collection."

The Liberal Democrats' environment spokesman Malcolm Bruce accused the government of working at a "snail's pace" to meet the new EU rules.

"The government has clearly mismanaged a long-anticipated EU regulation. [It] has had over a year to plan for this situation.

"The government's snail pace on this issue will cost us dearly."