PROPOSALS to build a controversial pylon line have been dealt a fresh blow with a ruling by Industry Secretary Stephen Byers MP.

The Secretary of State has ordered the National Grid to alter the route of the 500,000- volt line to ensure it is at least 100 metres away from three houses in North Yorkshire.

The decision is expected to force the electricity giant to seek a way-leave hearing, compelling the landowner to accept a new location for a pylon, which will lead to further delays to the project.

Following a public inquiry, the National Grid was given permission to route the line from Lackenby on Teesside to Shipton near York, provided it reached agreement with local authorities over locations where it passed within 100 metres of residential properties.

But extensive negotiations between the company and a landowner failed to find any suitable site where it would be at least 100 metres from three homes at Rounton Gates, near Northallerton.

North Yorkshire County and Hambleton District Councils withheld their consent to this route, meaning the issue was referred to the Secretary of State for a decision, who backed the local authorities.

National Grid will now have to re-open negotiations over an alternative site with the landowner, but if these fail the company will be forced to ask a Government inspector to intervene, which will mean further delays.

County council environment solicitor Geoff Fell said: "We thought the pylon was visually intrusive and we wanted it as far away from residential properties as we could."