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 which ban the rubber from being dumped in some landfill sites.

It is thought that some "itinerant" companies have been set up to dispose of tyres from garages and scrapyards at a vastly reduced price - and just dump them on roadsides.

But the tippers have been warned that they will be tracked down and prosecuted after the Environment Agency achieved a recent 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 this February.

Documents found in a raid on his home showed he had made £4,357 while the legitimate disposal costs on average £1 for a car tyre and up to £7.50 for those from goods vehicles and tractors.

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, so itinerant companies have set up and they approach garages, offer to remove them for a fraction of the cost and make money by just dumping them."