A SICKENING trade in children being sold for sex is operating networks in the North-East, a charity has revealed.

Youngsters are being abused by people who pay to have sex with underage girls and boys.

Deals are made over the Internet and punters arrive at a secret location where the abuse takes place.

In some instances, sexual scenes involving children are broadcast live over the Internet so other paedophiles can watch and the images are permanently stored

"There is a decrease in street prostitutes in Middlesbrough but the thing is that exploitation is a hidden phenomenon," said Wendy Shepherd, project leader of Barnardo's SECOS project, which helps young people escape abuse through prostitution.

"There are also incidents of trafficking whereby young people are brought into the country and moved round from town to town."

Mrs Shepherd said 185 young people have been referred to SECOS since March 2000. Of that figure, 36 have recovered and are now leading non-abusive lives.

There has been a 22 per cent fall in the number of prostitutes on Middlesbrough streets but Mrs Shepherd fears it means the vice trade is going even more underground.

She said:"Young people are being groomed and sold on the Internet. They can be placed in a hidden house or flat and there are organised gangs that will move young people from Middlesbrough and bring others in."

Mrs Shepherd spoke at a conference in Middlesbrough called Exit and Recovery this week to discuss ways to tackle child abuse through prostitution.

She said it was imperative that agencies such as Barnardo's, local authorities and police worked together and share information if they were protect the number of children who are at risk