COUNCILLORS appear to have backed away from a potentially costly legal fight with Able UK over its plans to scrap "ghost ships".

Hartlepool Borough Council had rejected three planning applications to develop Able UK's base at Graythorp for various activities, including ship dismantling, against the advice of planning officers.

Able UK then formally lodged an appeal with the Government's Planning Inspectorate, which was expected to lead to a lengthy public inquiry.

But at a private meeting yesterday, members of the council's planning committee decided not to defend the appeal, which would have proved costly.

It potentially clears the way for the firm to re-submit its plans and bid for further ship-scrapping contracts.

The latest twist in the saga comes a day after Able confirmed that nine ships, forming part of an £11m contract with the US Government, would not now be recycled on Teesside, although it planned to press ahead with work to dismantle the four vessels already moored at its yard.

Stan Kaiser, an independent councillor who represents the Elwick ward in the town, and who was present at the meeting, said that had the authority chosen to defend the appeal, it could have faced a bill as high as £1m.

He said he had put forward a proposal that no further action was taken with regard to defending the appeal, which was backed by all but two members present.

Coun Kaiser said: "There is no question about it, there has been a U-turn on this.

"I think the planning committee has listened to reason and should be given credit for allowing common sense to prevail."

The planning committee is expected to rubber stamp its decision next week.

Consultants are understood to have advised the authority that there was no basis on which Able UK's applications could be refused, while the council's chief solicitor has also said he believed Able UK was certain to win its appeal.

At a meeting of the cabinet earlier this week, town Mayor Stuart Drummond said public money should not be used to pay for the appeal.

He said: "Why should we have to mop up after the planning committee if they have gone against officer's recommendations?"

In a statement, Hartlepool Council said: "It would not be appropriate to go into any further detail at this stage as it could prejudice the council's legal position."