Illegal tipping is an increasing problem in Wales

The report, from the National Audit Office (NAO) Wales, warns that the nation will run out of places to handle waste by 2010 unless action is taken.

The report said that the problem of not having capacity to dump rubbish was most acute in south west Wales.

It was also found that illegal dumping of rubbish was also on the increase.

Wales produced nearly 26 million tonnes of waste last year, up by more than 10% on the figure two years ago.

The fines imposed on criminals so far have not been a sufficient deterrent James Verity, National Audit Office Wales

Most of the waste is dumped in landfill sites, but the present capacity will have run out by 2010, the report said, recommending that more than 500 new waste management facilities are needed.

The report said: "Wales' dependence on landfill may not be sustainable in the face of diminishing capacity. We estimate that on current trends, existing capacity will be exhausted before 2010.

"The problem is critical in south west Wales.

Wales is running out of capacity at landfill sites

"Capacity at one of the largest landfill sites in the area, Pwllfawatkin, near Swansea, which accepts waste from all over south Wales and Bristol, is expected to be filled by August 2005.

"The problem is exacerbated by the fact that the nearby Crymlyn Burrows materials recovery and energy centre - which would take some of this waste - is not yet operational."

The NAO report also says illegal dumping of waste has almost doubled since 2001.

Successful prosecution

It highlights several cases, including one in Radyr, Cardiff, where 400 lorryloads of rubbish, some of it hazardous, and including asbestos, were dumped at railway sidings.

It also highlighted a 2003 case in which a company was fined �40,000 for polluting the river Dee in north Wales with thousands of litres of clinical fluids.

The report said: "In February 2003, Eurocare Environmental Services was successfully prosecuted by the agency for a number of related offences across England and Wales.

"One of the incidents was the regular emptying of a 4,000 litre tank of fluid separated from clinical waste, including blood and other body fluids, which was in turn discharged into a tributary of the river Dee, part of the public water supply."

Commented on cases of illegal dumping highlighted by the report, James Verity, of the National Audit Office Wales, said: "The report makes a number of recommendations aimed at tackling the issue.

"For example, we recommend that local authorities use 'fly capture,' which is a database designed to capture essential information about fly tipping throughout the country.

"We also recommend that the magistrates and judiciary are made more aware of the serious impact of environmental crime as we have found that the fines imposed on criminals so far have not been a sufficient deterrent."