A MEETING crucial to the future of a multi-million pound ship dismantling contract is being held today.

Able UK could be left facing another hurdle to clear if councillors decide the company does not possess the necessary permission to create a dry dock at its yard on the outskirts of Hartlepool.

The outcome will determine whether the firm will need to submit a fresh planning application, which could take up to 13 weeks to consider.

Able also needs to gain permission to dismantle the vessels from the Ghost Fleet after a High Court judge this week ruled its authority to deal with "marine structures" does not cover ships.

A waste management licence granted by the Environment Agency was also described as legally flawed by the same judge at an earlier judicial review brought by Friends of the Earth.

Bosses at Able, which won the £11m contract to dismantle 13 former US navy ships in the summer, have said they will contest the planning ruling made by Mr Justice Sullivan.

A report will be presented to today's meeting of Hartlepool Borough Council's planning committee and members will be asked to determine once and for all whether they consider the company has permission to create a dry dock to carry out the dismantling work.

Able managing director Peter Stephenson is adamant permission granted by the now-defunct Teesside Development Corporation is valid, but council planning chiefs are equally insistent it is not.

* For more Ghost Fleet news visit www.ghostships.co.uk