TAXPAYERS could be forced to pay the £1m bill for an appeal into one of the North-East's longestrunning planning battles.

Able UK sparked a two-week public inquiry after it appealed against Hartlepool Borough Council's decision to refuse planning permission to extend the company's Graythorp site, at Seaton Carew, for the so-called ghost ships.

The four applications for the Teesside Environmental Reclamation and Recycling Centre (TERRC) site were turned down by the council's planning committee in October last year.

The plans include the creation of the world's biggest dry dock to dismantle decommissioned ships, as well as facilities for the manufacture of wind turbines, shipbuilding and the scrapping of gas and oil rigs.

In a bizarre twist, the council passed the company's four identical applications last Thursday, even though the inquiry had not finished.

As it came to a close yesterday, Martin Kingston QC, acting on behalf of Able UK, tabled an application for costs against the council.

He told planning inspector Ken Smith: "The unreasonable behaviour of the council has incurred costs because it should not have been necessary for the Secretary of State to determine the appeals.

"The council has behaved, in the course of the appeals, in a manner which has incurred unnecessary expense.

"The council has not resisted the appeals and has not called evidence in support of its reasons for refusal, contrary to the clear advice that it is bound to do so in respect of each reason for refusal if it is to avoid a costs award.

"The council's actions can only be taken to be a frank concession that the reasons for refusal were both insupportable and unreasonable."

The council's legal representative, James Findlay, told the hearing that figures between £500,000 and £1m had been suggested as a figure requested by Able for its costs. But no definite amount was outlined in Able's application.

The decision on whether costs should be awarded against the council rests with the Secretary of State, should Mr Smith recommend that Able's appeal be allowed.

Hartlepool Independent councillor Geoff Lilley last night described the possibility of the council having to foot Able's bill as an outrage.

He said: "I think it is disgraceful. It just shows that the law has very little to do with justice.

"Repeatedly, over many years, Hartlepool council has refused this application because the overwhelming majority see it as a retrograde step for the town."

Peter Tweddle, of the Hartlepool and North Tees Friends of the Earth, said: "We have said all along that all costs should be borne by Able UK.

"It was only because of their inadequacies in their planning application that it took so long to get it right.

"Why should local people have to pay for what needed to be done?"

Mr Smith said he would allow Able UK and the council three weeks to reach an agreement over the company's application for costs, and expected to officially close the inquiry on November 26.

A final decision on the appeal, including whether costs are awarded, is expected next year.