TWO-THIRDS OF the waste produced by Scottish businesses is still being dumped in landfill sites, swamping householders' efforts to recycle more of their rubbish.

Although ministers have invested heavily in schemes to increase domestic recycling, they have been accused of failing to tackle the mountains of waste generated by factories, shops, hotels and restaurants.

A survey for the government's green watchdog, the Scottish Environment Protection Agency (Sepa), reveals that nine million tonnes of rubbish a year is produced by commercial and industrial premises. Only 2.35 million tonnes of this is recycled, with six million tonnes ending up as landfill. As this rots it emits methane, a powerful greenhouse gas blamed for global warming.

The amount of business waste dwarfs that of ordinary households. In the year to March 2006, local councils collected 3.4 million tonnes of municipal waste, 2.5 million tonnes of which was landfilled and 0.83 million tonnes recycled.

Sepa waste manager John Ferguson said more should be done to tackle the environmental effects of business waste.

He said: "It is of concern that we remain so dependent on landfill in Scotland for the management of our commercial and industrial wastes.

"Given the impact on climate change of methane from the breakdown of biodegradable waste in landfill, we will be focusing more attention on alternatives to landfill disposal for wastes from commercial and industrial sources."

He suggested a framework for business waste being developed with the Scottish Executive would begin to address the problem. Some waste could be used to generate energy in biomass plants, he said, and increased recycling would improve business competitiveness.

The survey provides the best estimate to date of Scotland's business waste. Based on information from 2004, it did not include waste from construction and demolition companies, which are thought to generate an additional seven million tonnes of rubbish a year.

It showed two-thirds of the waste came from the commercial sector, with the wholesale and retail trade producing the most, followed by hotels and restaurants. Paper and cardboard accounted for almost a million tonnes of the waste.

Only half of the companies surveyed knew how all their waste was managed, while three-quarters admitted producing waste that could be recycled but was not.

The poll provoked a scathing response from environmental groups. "It is time to end this out of sight, out of mind' mentality," said Duncan McLaren, chief executive of Friends of the Earth Scotland.

"Commercial and industrial waste is more likely to cause harm to the environment, yet it has for the most part been completely ignored as a problem."

McLaren called on ministers to learn from their success in improving household recycling: "They should set recycling and reduction targets for commercial and industrial waste and make available the resources for the infrastructure required."

The call for more investment in recycling was echoed by Alan Mitchell, of the Confederation of British Industry in Scotland, who said: "Businesses are going to have to take waste issues more seriously than in the past. But they are going to need support, advice and guidance."

An Executive spokeswoman pointed out that, under the "polluter pays" principle, businesses have to be responsible for disposing of their own waste.

"Progressive increases in charges have been designed to encourage businesses to recycle," she said.

Ministers funded the Scottish Waste Awareness Group to establish a directory of recycling facilities, and businesses of £2 million turnover which make or use more than 50 tonnes of packaging per year must recycle or recover a proportion, she added.

"It is also important for businesses to reduce the amount of waste they produce. We support Envirowise and the Business Environment Partnership to provide free advice to businesses on waste minimisation."