A EUROPEAN directive that could have reduced investment in UK ports has been rejected by a committee.

It could also have forced port owners to hand assets to competitors within only ten or 15 years. That would have made port owners unlikely to make major investments.

North-East Labour MEP Stephen Hughes yesterday called on the EU's employment committee to reject the directive - and it agreed.

Mr Hughes is author of the European Parliament's report on the EU's proposed Port Services Directive.

He said: "Our ports have been privatised for years and often suffer unfair competition from Continental ports that sometimes enjoy hidden state aid. Why should Teesport, for example, be forced to hand over infrastructure it has invested in to outside competitors?

"Other elements of the Commission proposal are downright dangerous. Allowing the untrained crew of ships to load and unload would create a health and safety nightmare.

"Worse still is the crazy idea that pilotage and towing services should be thrown open to lowest bids from outside. When a huge vessel carrying volatile, potentially dangerous materials enters or leaves the Tees, I want to know that someone with a thorough knowledge of the river and estuary is doing the piloting."