Local authorities in Wales will face penalties of £200 for every tonne of waste that exceeds assembly government recycling targets under new proposals.
This is part of a bid to increase recycling to 70 per cent of waste by 2025.
Councils say the potential penalties are an “unwelcome development” at a time of falling budgets. But ministers say fines would be “a last resort”, and has promised to help councils.
Nine of the 22 councils missed last years 40 per cent recycling target, some by up to 10 per cent.
Under the new statutory system, that could have led to many hundreds of thousands of pounds in fines.
From 2012-13, councils will have a legal obligation to recycle at least 52 per cent of waste collected, and ministers now have the power to impose financial penalties if these are missed.