A scrap metal firm has admitted spilling oil into a Swindon stream.

European Metal Recy-cling Limited, of Gypsy Lane, pleaded guilty to causing oil to enter the Hreod Burna watercourse between February and June 2001.

The firm, which took over the site from Coopers Metals in 1994, also pleaded guilty to causing oil to enter a tributary of the stream in April 2001.

Magistrates declined jurisdiction, referring the case to Swindon Crown Court on a date to be fixed.

Prosecuting on behalf of the Environment Agency, Janet Fedrick told the magistrates that serious oil pollution had been caused to the stream, which begins at the EMR site.

"Water in the stream should only be rainwater," she said.

"This part of the stream had, for some time, pollution indications and Thames Water had been installing booms to control pollution for some time. The Environment Agency was very concerned. It corresponded with EMR for some time, expressing concerns about oil pollution and some sewage pollution."

Mrs Fedrick said the firm processed scrap metal, including cars, which resulted in the escape of some oil onto its paved yard.

She explained how any spillage should have drained into interceptor tanks to trap oil, but Environment Agency inspectors using dye discovered that oil was bypassing the safeguards and getting into the watercourse.

"A biological survey of the Hreod Burna and its tributary showed evidence of chronic pollution," Mrs Fedrick said. "It was not a good, active stream and there were no fish."

Defending, Jonathan Richards said the firm used a contractor to maintain its interceptor tanks but they had not been serviced between July 2000 and March 2001.

Mr Richards said: "The company was assured all drainage was connected to the interceptors. It appears that pipes from the non-ferrous yard weren't."

He added that the company mounted its own, unprompted clean-up camp- aign of the watercourse after the pollution came to light and was soon to complete a major project costing more than £100,000 to link its site to a foul sewer 180 metres away. After the hearing Lorraine Sant, EMR group environmental manager, said: "EMR regrets the events that have taken place at the Swindon depot. As a responsible company striving to achieve continual improvement in environmental standards, a full review of the drainage systems was carried out following this event.

"This has resulted in the implementation of an extensive site improvement programme."

Mark Ormrod, an Environment Agency environmental management team leader, said: "The agency will not tolerate pollution and is glad to see this incident is being taken equally seriously by magistrates. It has also had the effect of prompting the company into extensive remedial measures."