Many ageing ships contain hazardous chemicals
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Britain's ageing ships are being dismantled under "wholly inadequate" conditions on beaches in the developing world, a committee of MPs has said.
Standards of environmental protection, health and safety at breaking yards in countries like Pakistan, Bangladesh and India were "unacceptable".
Such irresponsible practices should end urgently, the Commons Environment and Rural Affairs Committee said.
Environment minister Elliot Morley said a new strategy was being drawn up.
Much of the ships' bulk is made up of steel and can be recycled when it reaches the end of its working life.
'Cheaper abroad'
But many vessels currently facing decommissioning contain hazardous materials such as asbestos, polychlorinated biphenyls (PCBs) and waste oils, the report said.
But because there were "few, if any facilities" for dismantling the larger ships in the developed world, most ships were broken up in Asia, the MPs found.
It was also much cheaper to do so, the report said.
"But health and safety protection for workers and environmental protection standards there are, by the standards of the developed world, often unacceptable," the report said.
Environmental charity Greenpeace told the committee its investigations found poorly regulated facilities in Asia.
Facilities lacked dry docks and other environmental protection measures which results in "serious damage to the environment and human health".
Greenpeace representatives told how they saw workers recovering materials such as asbestos by hand and with no protective clothing.
And the concern was not limited to green pressure groups.
British Petroleum Shipping, which sent one of its large ships to Pakistan for dismantling, was so concerned by what it saw there that they stopped using the facilities.
Regulations on "ships as waste" are complex and difficult to apply and enforce, the inquiry found.
"At home, the government must also do everything it can to persuade UK-based ship owners to arrange for their vessels to be disposed of responsibly.
"It is imperative that, as a first step it ensures that all naval and other publicly-owned vessels are dismantled to the highest, health safety and environmental standards," it said.
'Ghost ships'
The committee also said it would welcome the development of a thriving ship dismantling industry in the UK.
The inquiry into dismantling defunct ships in the UK was set up after last year's row over a fleet of American so-called "ghost ships" were brought across the Atlantic to Hartlepool where they were due to be decommissioned.
The contract was halted after environmental group Friends of the Earth took legal action and a US court is yet to decide the future of the ships.
Responding to the report, environment minister Mr Morley said: "I am in full agreement that ship dismantling must be undertaken in an environmentally and humanly sound manner and that urgent progress is needed at the international level to develop a solution.
"Government is actively engaged in international discussions on ship recycling.
"At home work is underway on the development of a UK Ship Recycling Strategy and the issues and recommendations raised by the committee will be considered in the course of our deliberations."