THE company behind a controversial £11m contract to dismantle 13 former US Navy ships in the North-East could lose the deal because of the time it is taking to secure the correct licences.

Able UK has admitted it does not expect to secure the necessary permissions until June and says it is losing more than £300,000 a week while four of the so-called Ghost Ships are anchored at its Hartlepool yard.

But Environment Minister Elliot Morley has already said that the ships could be returned to the US a month earlier, in May, when an Atlantic "weather window" opens, meaning the ocean is safe enough to cross without posing an environmental threat.

Able UK estimates it will have lost £9m by then. It has already shelved plans for a £3m investment at its Graythorp Dock, jeopardising potential future work.

Friends of the Earth campaign director Mike Childs said: "Able UK is the one who wanted to bring the ships over so it has got no one to blame but itself. It should have made sure it had the permissions in place before it signed the contract."

The remaining nine Ghost Ships scheduled for dismantling are still moored in Virginia, pending the outcome of a court case brought by US environmental campaigners.

Friends of the Earth and residents concerned about chemicals and asbestos on the ships secured court injunctions preventing the ships being dismantled in Hartlepool until the necessary licences are in place.

The Environment Agency confirmed the statutory period for processing the necessary waste management licences was four months, but said it could take longer.

Permission is dependent on plans to build the necessary facilities being approved by Hartlepool Council.

Able UK managing director Peter Stephenson said the huge costs were incurred by maintaining the safe condition of the four ships, as well as security and environmental measures undertaken.

The company has to meet the wages bill for the 20 to 25 people it employed to carry out the work last year, before the project was postponed.

Mr Stephenson said: "We do expect that it is likely to be summer before the licence and planning applications will be issued."

For more information visit

www.ghostships.co.uk