THE local government watchdog has upheld a controversial decision to site a waste depot next to a North-East housing estate.

Ombudsman Patricia Thomas said that both Durham County Council and Teesdale District Council acted properly in dealing with the application to site the waste transfer station at Stainton Grove, near Barnard Castle.

However, members of the Stainton Grove Action Group (Stag) are continuing their fight and have now been given a date for a hearing in the Court of Appeal over environmental issues.

Ms Thomas said there was no maladministration in reaching the decision to locate the station at Stainton Grove and will discontinue her investigation into the complaints.

Councillor Brian Myers, the county council's cabinet member for waste management, said: "In coming to this decision, the ombudsman said both councils and the waste transfer company had come up with cogent reasons why this location would be most suitable.

Although it has already been built, the transfer station needs a waste management licence from the Environment Agency to operate.

The Court of Appeal hearing into the siting of the transfer station is due to be heard on October 27 and 28.

Stag co-ordinator Ruth Renton said she was not surprised by the ombudsman's decision.

Mrs Renton said: "The complaint to the ombudsman is not even half the complaint we are taking to the court."