A GOVERNMENT watchdog hs decided not to take action against three councillors involved in a controversial vote.

A residents' group had asked the national Standards Board whether Middlesbrough's deputy mayor, Councillor Bob Brady and colleagues Councillor Paul Thompson and Coun cillor Mike Carr should not have been barred from taking part in a watershed meeting which decided to demolish 1,500 terrace houses spread across the town centre.

Coun Brady and Coun Thompson voted for the action at the July meeting of Middlesbrough Council's executive, while Coun Carr, who chairs the council's overview and scrutiny board spoke. All three are directors of Erimus Housing Limited, the organisation that took over ownership of Middlesbrough Council's housing stock.

The Standards Board has decided no action should be taken, but has given all three councillors advice about making declarations of interest.

A spokeswoman for the board said: "The investigations are now complete. The findings are no action needs to be taken. The case summary should be available on our website next week, giving details of how the decision was made.''

Ash Marron, a spokesman for residents in the threatened demolition zone, said: "I am very disappointed, not only with the outcome."

He is also concerned that the board made its decision a few days after he sent the board a letter, setting out his points of view.

"I can only conclude that they simply rejected my arguments out of hand and did not take my letter with the seriousness that it deserved,'' added Mr Marron.

Coun Brady said last night: "They (the board) offered advice, which I and my two colleagues have taken on board, that, just to be on the safe side, and if Erimus may become a partner in the future of the Gresham context, the Standards Board advises we should declare a non-pecuniary interest, which means we can speak and vote.''

Middlesbrough Council plans to bulldoze 1,500 terrace homes, mainly in the Gresham and Middlehaven (St Hilda's) areas, modernise another 6,000 and build 750 homes.