THE NORTH-EAST is favourite to become a world-class base for dismantling so-called ghost ships to end the scandal of toxic vessels being sent to India and Pakistan.

An all-party committee of MPs has demanded the Government helps set up a "thriving ship-dismantling industry" somewhere in the UK to scrap Britain's ageing fleet safely.

The committee's report, released today, states that Able UK's yard at Hartlepool "may be the closest to having the facilities and expertise".

It comes on the eve of the first anniversary of the arrival of four US warships.

Despite Able's hopes they would be followed by others, the ships have not been touched - pending planning approval.

A further nine due to embark for the UK have been stopped by a legal challenge brought by US environmentalists. It now looks as though they will not sail for the UK until next year at the earliest.

In its evidence to the environment select committee, the Government revealed it was already planning to develop a ship recycling strategy to tackle the problem.

And Able UK also is negotiating with the Ministry of Defence to scrap two British warships at Graythorp.

Michael Jack, the committee's Tory chairman, said he believed Able UK would be "knocking at an open door" if it put forward a convincing strategy to be the UK's dismantling centre.

He said: "It's not for the committee to suggest a location, but Able UK is the only contender that has so far shown an interest."

It is estimated the ship recycling industry could be worth £3.5bn by 2010, the date by which most of Britain's single-hulled tankers must be dismantled.

That is why Hartlepool Borough Council, Tees Valley Regeneration and Stockton North MP Frank Cook all urged the committee to back a centre on Teesside.

In his written evidence, Mr Cook condemned distorting of the issue by the "misinformation and scaremongering of irresponsible elements of the environmental lobby".

Greenpeace also believes Britain should clean up its own mess and not send its ships abroad.

Mr Jack said all the Government needed to do to help develop a British dismantling centre was to end the "unacceptable" practice of sending its ships to developing nations to save money.

They are then taken apart on beaches in Pakistan, India and Bangladesh - often by hand, by workers lacking protective clothing, releasing asbestos, waste oils and other hazardous materials.

The committee's inquiry was launched after the ghost ships row brought to light the terrible environmental damage caused by defunct British ships sent abroad.

In its evidence to the committee, Able UK said it had a strong record of dismantling more than 50 oil rigs and gas structures and disposing of their hazardous waste safely.

Hartlepool Mayor Stuart Drummond said: "Really, we were looking for more direction from the report regarding the disposal of hazardous waste."

Read more about the Ghost Ships campaign here.