COUNCIL tenants are threatening a rent strike on a drug-plagued North-East estate where two children are at the centre of an Aids scare.

The anger of Woodhouse Close residents, in Bishop Auckland, County Durham, came to a head yesterday after they learned that the youngsters - who are aged five and three - had been scratched after finding needles dumped in a carrier bag near their home in Howard Close.

They are now being tested for the Aids virus HIV and hepatitis B.

The bag contained letters addressed to a former tenant of a flat who moved out two months ago.

A council investigation concluded yesterday that the bag had probably been stored in an outhouse until recently. Workers cleared the garden of used syringes.

Alan Northcote, Wear Valley District Council's area housing manager, said the garden was cleared last month.

"We have removed some needles from the flat but these did not pose a risk to the public.

"I suspect rubbish has been stored in an outhouse and somebody has gone in and strewn it around."

The council and police have worked with the Durham and Darlington Drug Action team to try to combat problems on Woodhouse Close, where, a few years ago, mothers set up an anti-drugs group.

Two neighbourhood wardens will start work in April on the estate, which has undergone a multi-million pound renewal programme over the past few years.

But yesterday tenants demanded immediate action.

Kathleen Dodd, who collected a 40-signature petition, said: "Why should decent people have to live with this?

"We are sticking together and not paying our rent until we get something done."

* A 24-hour needle exchange operates at Bishop Auckland General Hospital's accident and emergency department. Users should call (01325) 300427 for information.