The number of abandoned cars on Preston streets has fallen as more cars are being scrapped illegally for their valuable metal.

Recent statistics from the Local Government Association show the number of cars reported as abandoned on the streets of Preston fell from 247 in 2002/3 to 64 in 2006/7 – a drop of 74 per cent.

Scrap merchants would have charged £30 to £50 to take away a rusty banger only a few years ago. Now they will pay owners up to £200 because the price of steel, aluminium and copper found in cars has risen steeply.

The dramatic increase in metal prices, fuelled by demand from countries like China, has led to a massive increase in the number of unlicensed operators flouting environmental laws on the disposal of scrap cars.

The End-of-Life Vehicles Directive, which became UK law in 2003, requires potential contaminants such as oil, brake fluid, tyres and airbags to be removed from cars before they are scrapped.

Old cars must be taken to one of 1,200 ATFs licensed by the Environment Agency.

Car owners should be issued with a Certificate of Destruction to prove that the vehicle has been depolluted, scrapped lawfully and road tax is no longer due.

But many local illegal dismantlers are undercutting the ATF’s by collecting cars and disposing of them illegally.

With only around 900,000 Certificates of Destruction estimated to be issued this year, as many as 1.1 million old cars could be unlawfully collected during 2008.

Legitimate companies who have invested in the depolluting equipment necessary to be registered by the Environment Agency are being forced out of business by the rogue traders.

Liberal Democrat’s environment spokesman in Brussels Chris Davies says the fault lies with the DVLA who are accused of maintaining a loophole that allows huge numbers of drivers and vehicle dismantlers to ignore the anti-pollution rules.

Car owners can claim that they have scrapped the car themselves simply by ticking a box on their vehicle registration document.

The MEP claims it is time for a Government crackdown to put the dodgy dismantlers out of business.

He said: “While it is welcome news that less scrap cars are littering our streets, this has only been made possible by the increase in criminals cashing in at the expense of the environment.”

“Ministers are allowing illegal operators to run rings around them at the expense of the environment and allowing legitimate businesses to go to the wall.”