THE latest chapter of the North-East ghost ships drama starts tomorrow with the opening of a public inquiry by the Planning Inspectorate.

The inquiry, which is expected last about 12 days, is into Able UK's appeal against refusal of its planning applications last year.

Hartlepool Council's planning committee rejected the company's bid to develop its Graythorp site on the outskirts of the town in October last year, and on Friday voted to defer a second set of applications until after the public inquiry, despite recommendations from officers to approve the scheme.

Able wants to extend the use of the site to include the construction, repair, refurbishment and decommissioning of all types of ships, vessels and other craft, and for the manufacture of wind turbines.

It also hopes to create a dry dock, railway track, metal recycling facilities and warehouses, and has applied for hazardous substances consent to dispose of waste materials.

Able UK's chairman, Peter Richardson, says the delay has placed millions of pounds of investment and hundreds of jobs in jeopardy.

He said: "Inevitably, if we have to wait until the outcome of the forthcoming planning inquiry, which probably will not report until early next year, these contracts - and with them the 50m investment and 750-plus jobs they would bring to the area - will be lost."

The company had hoped that work on contracts for steel and concrete construction projects would get underway by next summer, together with the start of the recycling of six vessels already berthed there, including the four redundant vessels from the American fleet.

The vessels - the Caloosahatchee, Canisteo, Compass Island and Canopus - arrived at Hartlepool in November 2003. But Able could not go ahead with work on recycling them following a court ruling that the previous planning permission allowing the recycling of marine structures did not include ships.

Objectors have welcomed the inquiry, claiming they have damning evidence regarding Able UK's track record in dealing with hazardous waste.

Jean Kennedy, from the Friends of Hartlepool, said: "We are looking forward to the inquiry, as we have a lot of vital information that backs up our case against Able UK."

The public inquiry is held at Hartlepool College of Further Education, in Stockton Street, starting at 10am.