A major Shropshire oil company has enlisted the support of a county MP to fight a tenfold increase in packaging waste tax that it says will have a devastating impact on business.

Morris Lubricants, one of the oldest companies in Shrewsbury, employing 130 people, is set to see its bill for producing steel, wood and plastic waste rise from £5,000 in 2008 to £35,000 this year and £60,000 in 2010.

The levy per tonne of steel has risen from £9.70 to £97 in just over a year.

Shrewsbury MP Daniel Kawczynski is writing to Business Secretary Lord Mandelson to warn him of the impact Government-enforced rules are having on British businesses.

Morris, which is calling for a Government rethink, says the increase is unreasonable while the country is in the grip of recession.

Tory Mr Kawczynski has pledged to call a debate in Parliament on the issue if Mr Mandelson does not act.

The company is also to raise the issue with the United Kingdom Lubricants Association, the board of which is meeting at Morris Lubricants today.

“The increase in levy is going to affect not only Morris Lubricants but every business in country with a turnover in excess of £2 million that produces packaging waste,” said Morris Lubricants managing director Andrew Goddard.

“The Environment Age- ncy uses different levies for each waste item. Steel has the biggest impact and that is the one that has seen the biggest rise.

“We accept that there should be an environmental levy on waste products but a tenfold increase in 12 months is a big hit on our company and it comes off the bottom line. Increases of that magnitude cannot be sustained in the long term.

“Through careful restructuring, we have managed to weather the recession and then the Government comes along and does this. We are being hit by one piece of legislation after another and we feel we are being penalised for doing the right thing.”

Mr Kawczynski said there needed to be a national debate. He said: “Because the UK is not business friendly lots of companies have moved to other countries and this trend will continue until the Government realises business is the workhorse that pulls the social welfare cart.”

By Russell Roberts