Businesses in the Highlands and Islands 'throw away' over £50 million each year through poor waste management practices. This is the stark message being delivered to local business people at a seminar in Inverness tomorrow (Wednesday 31st January).

The seminar is being jointly organised by Highlands and Islands Enterprise (HIE) and the Scottish Environment Protection Agency (SEPA) to help businesses understand the scale of the problem, and to outline ways in which they can save money by better waste management. It is currently over-subscribed, with almost 90 local business people due to attend, demonstrating the growing importance being attached to the issue.

A raft of new legislation including the landfill tax, the climate change levy and the aggregates tax - all based around the 'polluter pays' principle - means that the more waste a business produces, the more they have to pay. This in turn is increasing the pressure for more efficient and environmentally-friendly waste management techniques.

According to government estimates, through the DTI (Department of Trade and Industry), small companies - those with less than ten employees - spend an average of £3,000 a year on waste management. In the Highlands and Islands there are 16,700 businesses in this category, which means that just over £50 million is being spent on waste handling. This does not take into account the waste costs of larger companies, so the true figure for the whole of the Highlands and Islands business community is likely to be substantially higher than this, demonstrating the scale of the savings which could be made through improved waste management.

Proper waste handling has other implications for the area. At the moment Highlands and Islands businesses export products worth approximately £300 million a year. Much of this trade is built, and depends on, the area's clean and unpolluted reputation - something which proper waste management would help maintain and improve. Commercial and industrial waste in the area amounts to 208,000 tonnes each year.

The seminar is aimed at bringing the financial realities of poor waste management home to local business people. It will also highlight the National Waste Strategy Scotland, which addresses the need to minimise waste on a national level through the reuse and recycling of materials. SEPA is working with a wide range of local organisations to produce a Highland Waste Plan.

Major improvements can be made by adopting a few simple practices. For example water consumption can be monitored, and water recycled, cutting down overall operating costs. Materials can be recycled and reused and energy costs reduced through identifying the most energy consuming processes and switching off when not in use.

Chief executive of HIE, Sandy Cumming will deliver the keynote address at the conference. He said: "There is a growing recognition among businesses in the Highlands and Islands of the long-term benefits to be gained from improved waste management. This strategy provides clear guidelines and a simple action plan for businesses wishing to reduce waste production."

Professor Brian Clark, chairman of SEPA north region. said: "Waste is an economic reality and for business it literally means throwing away money.

Today's seminar is all about exploring what local businesses can do and I am delighted to see that the Highland business community has come out in force."