THE discovery of spy bugs in bins across Hyndburn has led to a wave of protest and confusion with residents claiming "Bin Brother" is invading their homes and threatening a stealth tax.

Suspicious householders are worried the micro-chips, which resemble a 2p piece, could be used to record personal information and lead to extra charges if rubbish exceeds a certain weight.

The contentious issue was raised at a meeting of Hyndburn Council's Overview and Scrutiny Committee where angry residents were invited to air their concerns.

Les Rushton, of Grafton Avenue, Baxenden, said: "I was shocked after reading last week's Observer. These bugs have been sneaked through the back door and the cost of the bugs and all the equipment needed to read them is going to run into thousands.

"This kind of expenditure can't be justified without the council getting some kind of return for its money and this means extra rates on rubbish which we already pay for in our council tax."

"Big Brother is alive and well and this is an invasion of people's privacy. I am wondering if this meeting is the first time the scheme has been openly debated."

The so called chip-and-bin scheme was introduced to Hyndburn three years ago when the council purchased 32,000 bins and put in the chips at a cost of less than £2.

Steve Todd, chief environmental services officer for Hyndburn Council, said the chips had never been a secret but admitted that he wouldn't be surprised if their use was extended within the next 10 years.

He said: "There have been concerns about being charged for refuse and this is clearly a possibility but there would have to be a change in legislation.

"We are not permitted to do it at this time and new equipment would have to be put into vehicles."

Decisions to introduce the bugs have been taken by individual councils across the country but many expect the Government to introduce an extra tax on non-recyclable rubbish in the near future.

Committee chairman, Councillor Doug Hayes, said: "Many residents are still in the dark about the bugs and there should have been better advertising about the benefits because people think it's Big Brother watching them. We need to do more to allay fears."