A HIGH-LEVEL meeting has been held in London to discuss the future of the controversial US Ghost Ships.

The meeting was called by Environment Minister Elliot Morley at the request of Hartlepool MP Peter Mandelson and attended by the town's civic leaders.

Also present was the boss of Able UK, which won a multi-million pound contract to dismantle the rusting vessels at Hartlepool.

The planned dismantling and recycling of the ships caused anger among campaign groups and some Teesside residents, who said the ships were toxic timebombs carrying harmful materials and dangerous asbestos.

Friends of the Earth and some local residents launched legal challenges to the planned dismantling at Able UK's centre near Hartlepool, and obtained court injunctions preventing the ships being dismantled.

Able UK has been told it cannot carry out work on the four ships that were brought over from the US until waste management and precise planning regulations are met.

Mr Mandelson said: "We had a useful meeting about the immediate question of what to do with the US ships and the longer-term issue of ship-breaking in general.

"There is a huge environmental business opportunity to be had, and I strongly believe that Hartlepool should play its role in enabling ships to be broken up in an environmental and legally sound way.

"This will also bring jobs and investment into the town."

A spokesman for the Department for Environment, Food and Rural Affairs, said: "The issue of the US Ships in Hartlepool is a matter for the regulatory bodies, in particular the Environment Agency and the local planning authority.

''The UK Government is keen to see the best environmental outcome for the four ships in Hartlepool and, in the longer term, the provision in the UK of first-class, environmentally sound recycling facilities for redundant ships.''

Peter Stephenson, the managing director of Able UK, said: ''In addition, we discussed the wider issue of the increasing challenge of finding the best way to dispose of redundant shipping.

''The minister underlined the need for us to have a first-class facility in the UK to undertake this kind of work.

''That is, of course, the reason why we have developed our Teesside Environmental Reclamation and Recycling Centre facility and why the US Maritime Agency awarded us the contract for the recycling of their vessels.

''I believe that, following today's meeting, all parties involved will be working to resolve the current outstanding issues and I am confident that, as Mr Mandelson has pointed out, we have a real opportunity to use the skills and expertise available in the area to bring further work and contracts.''