UKIP MEP Mike Nattrass says the Local Government Association is right to warn that a wave of new EU legislation could hit town halls with a fines ‘bombshell’.

The West Midlands MEP says the LGA should be praised for highlighting ‘Draconian’ EU procurement rules which could force public bodies to pay £600 million in annual fines.

In a press statement issued by the LGA this week, the Association claims the implementation of the EU agency workers directive could raise town hall staffing costs and strict rules on reducing landfill could also hit the finances of local authorities in the UK.

The LGA also expressed fears that imposing fines, (under the EU Late Payments Directive), on public bodies that fail to pay suppliers’ invoices within 30 days call have a direct impact on taxpayers themselves.

In the statement issued by the LGA on Wednesday, the Association warned: “Whitehall has estimated the annual cost to the public sector could be £170m. But, drawing on research suggesting £12bn worth of public sector invoices are paid late, healthcare bodies believe costs could be as high as £600m.

“ Councils are also concerned about the final cost of the agency workers Directive, which will give temporary staff similar employment rights to permanent staff after 12 weeks.

“ Ministers appear to have delayed implementation of the law until the latest possible date (December 2011) to avoid increasing unemployment and destabilising economic recovery.”

Mr Nattrass said: “The LGA is right to say the agency workers Directive could result in a massive increase agency workers costs.

“ Local authorities and public bodies will be hit by spiralling costs and could also be forced to pay substantial fines thanks to EU interference.

“ Why should taxpayers suffer? Brussels bureaucrats should stop interfering in our affairs and this whole fiasco shows why we should be making our own laws in Westminster.

“ It is time to say NO to the EU and pull out of the European Union. The cost of implementing these directives could cost taxpayers dearly,” he added.