THE Government was yesterday urged to introduce national guidelines to prevent a repeat of the controversial Ghost Ships saga.

In a top-level internal report, the Environment Agency calls on the Government to create a UK-wide policy on ship recycling.

The memo, which was being presented to the agency's board yesterday by chief executive Baroness Young, also demands an international agreement on the issue.

The paper, called US Navy Ships Review, has "reviewed lessons learnt" from the drama surrounding the ships, which are docked at Graythorp, near Hartlepool, where Able UK is hoping to dismantle them.

The company's plan for the rusting vessels has caused uproar from campaign groups and residents who say they are "toxic timebombs" carrying harmful materials, including asbestos.

Friends of the Earth and locals launched legal challenges to the work and obtained court injunctions preventing the ships being dismantled.

Able UK has been told it cannot carry out any work until waste management and precise planning regulations are met.

Baroness Young wrote in the report: "A national policy on ship recycling should be established, including imports and exports and whether minimum environmental standards should be applied to all facilities involved in recovering UK flagged vessels."

Friends of the Earth campaigns director Mike Childs said: "We are pleased that the Environment Agency has learnt important lessons from the Ghost Ships saga.

"Friends of the Earth will continue to do all it can to ensure an internationally important wild-life site in the Tees Estuary is fully protected."