The VBRA is urging bodyshops to renegotiate their contracts with the insurance companies so that the knock-on environmental costs of the repair process are not carried by the garage. The move follows the Chancellor Gordon Brown's announcement in his Pre-Budget Statement of an increase in the Landfill Tax.

The VBRA is adamant that the extra waste disposal costs linked to the extra landfill costs are not imposed on bodyshops. The VBRA says that its own data suggests that it costs a bodyshop between 60p and £1.20 per hour to recover.

Ron Nicholson, VBRA director-general says, “As the polluter, all insurers and other work providers should now be informed by each repairer that any work carried out on their behalf would now include an identified waste disposal and environmental charge. Businesses simply cannot continue to accept any more additional and uncontrolled costs. If insurers will not accept them the work should be refused.

“Any repairer who is irresponsible and foolish enough to undermine not only their own business by accepting this work without these charges being accepted will not only be accelerating their own demise but that of the rest of the industry.”

He went on: “Charges for waste disposal and environmental costs must now be implemented by all in the industry. Any insurers who refuse to pay should be made known to the VBRA who will name and shame and will also take the subject up with the appropriate authorities.”