Higher fines and more prosecutions are failing to stop multi-million pound businesses committing environmental crimes.

The Environment Agency's report on business environmental performance documents good and bad behaviour by firms in England and Wales in 2002.

Repeat offenders, who make up 20 per cent of the list of poor performers, have failed to learn from previous convictions, according to the watchdog.

Despite penalties increasing by 36 per cent and prosecutions by 13 per cent, the average fine per prosecution rose to just £8,744.

Significant repeat offenders in 2002 included United Utilities (£327,500), Anglian Water Services Ltd (£285,000), Thames Water Utilities Ltd (£135,000), BP Oil Ltd (£60,000), TotalFinaElf (£54,000), 3C Waste Ltd (£17,000) and Tesco Stores Ltd (£10,000). All were top offenders in 2001 too.

The agency said the pollution caused by these companies despoiled the environment for local communities and some pollutants put wildlife and human health at risk.

Fines for pollution hit the water industry hardest. During 2002, the sector was fined close to £1 million, the highest of any industrial sector.

Water companies are responsible for one in six serious pollution incidents affecting water, a 23 per cent increase since 2000.

Pamela Taylor, chief executive of water industry trade body Water UK, said: "The number of incidents for which water companies were responsible is tiny in absolute terms but lessons have been learnt from all of them."

Environment Agency chief executive Baroness Young of Old Scone, said: "Courts are getting tougher on environmental offenders but fines are still small change for big business."

Craig Bennett, corporate accountability campaigner for Friends of the Earth, said: "It's good the Environment Agency is bringing these prosecutions but it is clear the biggest and baddest businesses see fines as a price worth paying when they can make profits at the expense of people and the environment."

Thursday July 31, 2003