AN ethics watchdog is being urged to reconsider its decision not to take action against three Teesside councillors.

Two Middlesbrough councillors, Bob Brady and Paul Thompson, voted for a regeneration scheme in the centre of Middlesbrough, involving the proposed demolition of 1,500 houses.

Another councillor, Mike Carr, did not vote, but spoke during the same controversial meeting of Middlesbrough Council's executive last July.

All three are directors of social landlords Erimus, which owns property in the area proposed for demolition.

The Government's Standards Board investigated concerns of residents campaigning to save their homes from the bulldozers that the three took part in the debate.

As revealed in The Northern Echo, the board decided to take no action against the councillors, but advised them to declare non pecuniary interests in future - should Ermus become partners in a regeneration scheme.

Ashley Marron, spokesman for Gresham residents, has now appealed against the Standards Board's decision.

Mr Marron said: "Nothing from this case makes me believe that Standards have acted in the public interest."

The district council says Middlesbrough threatens to become a ghost town as house hunters shun older terraced houses, choosing to live in more modern, attractive locations out of the area.

But residents say demolition would turn 37 terraced streets of housing into a big money prime development opportunity for developers.

Coun Brady, who is chairman of the Erimus board, said last night: "The council has not appointed Erimus as its legal partner so, basically, we are no different to any other landlord that owns property in that area."

Referring to the July meeting, he added: "It was a minor infringement. If I had said I was registering a non pecuniary interest, it would still allow me to speak and vote."