An out of court settlement has been reached by The Home Office and a number of haulage companies involved in the 'Roth' case, that will release impounded vehicles and withdraw claims for penalty payments.

It is understood that the agreement will nullify the fines of £2,000 imposed on lorry operators who found that they had stowaway illegal immigrants on board vehicles arriving in the UK.

However, the settlement applies only to the companies involved in the case and not to the large number of UK and foreign companies who have received similar penalties.

FTA chief executive, Richard Turner, on writing to the Home Office minister, Beverley Hughes, said: 'The settlement of this case must now remove any perceived impediment to a much close co-operation between industry and your officials, which is overdue.

'It also means there is an urgent need for policy decisions on all penalties which have not been expunged as a result of the 'Roth' settlement. There is now the question of what regime will operate between now and the implementation of the new legislation.' He continued: 'We remain committed to working closely with your officers in the fight against the problems caused by transport operators by illegal immigration.' The fines of £2,000 per stowaway were introduced in April 2000 and the government is currently seeking to increase the sum to £4,000.