VILLAGERS have described a decision to allow another car scrapyard opposite their homes as the final insult to their community.

Ros Henderson, a founder member of Craghead Residents' Association and Neighbourhood Watch in the village, said neighbouring scrapyards had led to a huge decline in the area around Railway Street.

She said many homes in the street were now derelict because people could not sell after having their properties on the market for years.

Other owners were planning to sell their houses for just a few thousand pounds.

"It's all down to those scrapyards," she said. "These are actually very nice houses and we all love our community at Craghead, but it is getting out of hand. The decision to allow yet another car dismantler is disgraceful."

Two letters of objection were sent to Derwentside District Council, which voted to allow the new scrapyard last week. One of the letters was signed by 43 people.

Mrs Henderson criticised the Environment Agency for recommending that permission be granted and for not doing enough to protect the area and residents from pollution generally.

The district council agreed to allow retrospective permission for a vehicle dismantling and repair unit.

Planning officer Craig Stockley said that because just 20 cars could be kept as scrap at the site it was not officially a scrapyard. In a report to councillors, he said the proposal was for an existing industrial unit.

He said: "Craghead Industrial Estate is one where a number of bad neighbour-type uses, such as vehicle dismantlers and scrapyards, have been located and the local plan identifies the industrial estate as suitable for such."

An Environment Agency spokesman said last night: "The agency responded to the council on February 27 and said it raised no objection to the planning application.

"The three existing scrapyards are sawmills and are exempt from waste management licences because they are smaller operators.

"But they are inspected by the agency each year and extra visits are carried out if needed.