EMBATTLED Able UK last night criticised the Environment Agency as the row over plans to scrap the so-called ghost fleet rumbled on.

The Hartlepool firm said the blame for it having to apply for a new waste management licence rested with the agency, which it said had failed to follow proper procedures.

It also said a suggestion from the agency that it was necessary to impose controls on the scrapping of the ships and allow a process to take place in which work was done in a legally and environmentally sound manner was misleading.

Peter Stephenson, the managing director of Able UK, said: "This gives the impression that we might have other intentions in mind.

"The controls set out by the agency virtually copy Able's working plan conditions, which we provided and are already working to."

Able UK has now suffered two legal defeats in its bid to scrap the former US Navy ships.

A High Court judge said this week that existing planning permission to break up ships was legally flawed.

Mr Justice Sullivan also quashed a modified waste management licence, which had been issued by the Environment Agency to allow disposal of the rusting fleet.

This means that Able will have to apply for fresh planning permission then do the same for a new waste management licence before work starts, which could take months.

The Environment Agency said it carried out a proper environmental assessment when it issued the licence modification.

Area manager Craig McGarvey said the agency was constantly reviewing its procedures and would consider any feedback as a result of the legal rulings.

* www.ghostships.co.uk