THERE will be mixed feelings today over the prospect of the North-East becoming the base for the dismantling of "ghost ships" from across Europe.

But the potential economic benefits outweigh the inevitable environmental concerns - as long as lessons are learned from the Hartlepool experience.

A Government study, drawn up by the Department for the Environment, Food and Rural Affairs, has concluded that Teesside and Tyneside are the best locations for a permanent ship recycling centre.

Given the region's proud shipbuilding heritage, that should not come as a surprise. We have the expertise to rise to the task and, with £3.5bn worth of work anticipated by 2010, it is a goal well worth pursuing.

But before we move on to the bigger picture, there is the relatively small matter of the four existing "ghost ships" which have been left to rust at Hartlepool since they were brought here with indecent haste in 2003.

The Environment Agency continues to have concerns about the potential impact on wildlife at the internationally-important Seal Sands site nearby - concerns which should have been addressed before the ships set sail from America.

Yesterday's study by Defra raises the stakes considerably. The NorthEast is in pole position to capitalise on a highly lucrative market and bring much-needed jobs to the region.

But before redundant old ships from across Europe can be brought to us for dismantling, the stalemate at Hartlepool has to be broken.

And beyond that there must be the necessary investment in infrastructure to create the facilities where these rusting wrecks can be dealt with safely.

It has to be better that these vessels are disposed of here, in conditions that do no harm to the environment and provide well-paid jobs, rather than being taken to Far East beaches where the local population pulls them to bits without any safety considerations.