Wastepack has failed to fulfil its obligations under the controversial rules and has received a formal warning notice from the Scottish Environment Protection Agency. The organisation discharged less than 43 per cent of its recovery obligation falling 240,000tonnes short of its 415,000t target.

Further non-compliance could result in the authorities cancelling its registration.

'I am angry at anything that detracts from the UK's recovery and recycling performance and I am particularly angry that one of the largest compliance schemes should have underperformed so dramatically,' said Meacher.

'Other compliance schemes and most individually registered businesses obligated under the regulations have produced a significant increase in the UK's packaging waste recycling performance, allowing the UK to move from about 30 per cent recovery in 1997 to around 50 per cent in 2001.' A large number of fresh produce companies are obligated under the regulations, which were introduced in 1997. Any business with an annual turnover of more than £2million that handles more than 50 tonnes of packaging annually is affected.