BUSINESSES tempted to break environmental law have been issued with a stern warning by regulators.

The Environment Agency has produced a report, which shows that, last year, courts nationally handed out more than eleven years behind bars, millions of pounds in court fines and more than 240 days of community service to individuals, companies and company directors for environmental offences.

Offences included the illegal dumping of hazardous waste and polluting of water courses.

Fines against the waste sector overtook the water sector: £778,077 in fines over £5,000, compared to £623,075 for the water sector.

However, the agency believes that more can be done. Barbara Young, chief executive, said: "We're pleased the courts are starting to get the message that environmental crime is a serious offence and handed out more than £3.5m in fines - a rise in nearly £1m since 2005.

"Although this is a good sign, penalties for environmental crime still aren't harsh enough.

Some fines can be as low as a thousandth of a per cent of a company's worth and, despite the higher penalties, the average fine was still only £11,800. The law is there to protect our environment and so those businesses and individuals who think they can cut corners best watch out - we won't tolerate it.

"Waste cheats, for example, make money from their crimes, pollute our environment and damage the legitimate, law-abiding businesses. So the penalties need to reflect the seriousness of the crime.

"The report shows that there are many businesses and operators out there that are performing well, with more than 50 per cent of the sites we regulate getting the top rating for environmental performance and management.

We are not interested in hassling businesses and operators that run a good ship, as it's a waste of their time and ours.

That's why we focus our attention on helping the poorer performers and catching the rogues."

In addition to prosecutions, the agency is now using new legislation which allows law enforcement agencies to freeze the finances and seize assets of companies breaking environmental law.

■ The agency's annual report has revealed that greenhouse gases are starting to creep up as the UK economy thrives. Levels had decreased by 16.8 per cent since 1990, but last year rose slightly.