ROGUE traders are costing taxpayers thousands of pounds by cashing in on tough new legislation surrounding the disposal of used tyres.

Environmental experts believe an increase in fly-tipping has been sparked by rules that ban the rubber from being dumped in some landfill sites.

It is thought "itinerant" companies are being set up to dispose of tyres from garages and scrapyards at a vastly reduced price - but are then simply dumping them on roadsides.

But the tippers have been warned they will be tracked down and prosecuted after the Environment Agency achieved a court success against a North-East man.

Brian Tumilty, 52, was sentenced to 180 hours community punishment and ordered to pay £2,000 costs after he admitted eight charges of illegally dumping tyres in Durham, Newcastle, Gateshead and Northumberland.

Investigators launched a surveillance operation after being tipped off by a garage owner that Tumilty had offered to take away tyres at a knockdown price.

Details of all the commercial vehicles used by Tumilty or parked near his home in Ryton, Gateshead, were logged and it was discovered he had collected and dumped 11,000 tyres from 71 different establishments between April last year and February.

Documents found in a raid on his home showed he had made £4,357, when he should have made about £11,000 if legitimate disposal costs - £1 for a car tyre and up to £7.50 for goods vehicles and tractors - had been applied.

Officials from Darlington Borough Council have recently had to remove dozens of dumped tyres from the road between Piercebridge and Heighington, at a cost of £400.

A council spokesman said: "Our wardens are stepping up patrols in that area and we would ask people to be vigilant and let us know if they see anything."

Councils across the region have reported problems with illegally dumped tyres - in Hartlepool, Brandon and Waldridge Fell Country Park, in County Durham, and in lay-bys off busy roads such as the A19.

A new European Commission directive has banned the disposal of whole tyres in landfill sites, and now some are burned for their energy at regulated sites, and others are either shredded or moulded and re-used.

Environment Agency enforcement officer Heath Waddington said: "There are only so many outlets for tyres, so that puts the price up and has resulted in itinerant companies being set up. They approach garages, offer to remove tyres for a fraction of the cost, and make money by simply dumping them."

When we tire of our tyres

* The UK discards 37 million used tyres every year. Laid side by side, they would stretch from London to Sydney. Piled together, they would fill the Millennium Dome.

* The number of tyres in use is forecast to increase by up to 60 per cent by 2021 as the number of vehicles rises. Between 1970 and 1996, road traffic more than doubled in Britain.

* Of the annual total of discarded tyres, just over 30 per cent are given a retread - one of the highest rates in Europe.

* Only 27 per cent are burned for their energy. Several other European countries use more than 70 per cent of their old tyres in this way.

* Just under 30 per cent are dumped in regulated landfills or are stockpiled. The rest are used in various ways, such as weighing down plastic sheeting or moulded into plant holders or for playground flooring