HUNDREDS of East Lancashire firms face stiff penalties if they don't face up to new green rules.

The European Union is introducing legislation on the disposal of packaging waste which will affect every business from retailers to major industrial firms.

The new legislation means that businesses turning over more than £5 million and producing more than 50 tons of packaging waste a year must recycle up to half of it.

"A prosecution can have serious consequences," warned Steve Oliver of accountants KPMG's packaging team.

"Companies will have to invest in time and resources to make sure they conform to the new rules."

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