Land for a controversial incinerator has been secured as an inquiry into the compulsory purchase of the site began.

East Sussex County Council has revealed that waste company Veolia will now begin to prepare building works at the North Quay site, Newhaven.

A compulsory purchase order had been issued last year in case no deal could be struck with the leaseholders of the land.

A public inquiry at The White Hart Hotel, Lewes, into the acquisition started on Monday, following a number of objections.

But with the land already secured, the county council said that it would not need to force leaseholders into leaving the site.

The ten-day public inquiry will carry on nonetheless as inspectors will only call off the hearing if a vacant possession order is issued - effectively when the keys are handed over.

A spokesman for the council said: "Planning permission has been granted for an energy from waste facility in Newhaven.

"East Sussex County Council's planning committee gave the applicant, Veolia South Downs Ltd, the go-ahead to build the facility last week subject to various conditions, including requiring a legal agreement.

"The conditions ensure matters such as dust, noise and construction have a minimal impact on local people.

"The legal agreement has now been signed, and Veolia has also secured a legal interest in the land on which the facility is proposed to be built, enabling the planning permission with 44 conditions to be issued."

The council refused to discuss details of the agreement, but it had previously emerged that East Sussex County Council would acquire the leasehold and then rent the site back to Veolia.

A confidential report, seen by The Argus, revealed that council tax payers were expected to stump up £8.2 million in rent for the incinerator site at North Quay Road over 30 years.

The construction costs of the controversial project have also more than doubled from original estimates, reaching £145.7 million.

East Sussex and Brighton and Hove City Council, which have a joint waste plan, have agreed to help Veolia meet its financial burden by extending the life of the contract from 25 to 30 years.

Anti-incinerator group DOVE said it would not give up the fight against the proposals.

Andy Bishop, spokesman for the organisation was at the inquiry on Monday, and said that if the compulsory purchase order is turned down on planning grounds, it may force the council to rethink.

He said: "It is almost ten years ago since we started and DOVE as a group will be opposed to this to the bitter end.

"It would be pointless giving up at this stage.

"I really do not know why East Sussex has remained inflexible over the last ten years."

Plans for the incinerator were approved by the county council earlier this year and it is expected to be operational by 2010. It will process 210,000 tonnes of refuse annually.

Will you continue fighting the incinerator plans? How will it affect house prices in the area? Tell us below.