Building a controversial incinerator would not damage a port town's economy, claims a new report.

The independent study says an incinerator at North Quay, Newhaven, would not harm inward investment.

It added that the proposal could stimulate businesses wanting to use the recovered wastes for themselves.

East Sussex County Council and Brighton and Hove City Council commissioned the study by economic consultants DTZ Pieda.

The move followed concerns by business leaders over locating a burner at Newhaven.

Councillor Tony Reid, lead cabinet member for transport and the environment on East Sussex County Council, said the study would help them make an informed decision.

He said: "It provides an important insight into the impact that such facilities would have on the town's economy.

"And the evidence suggests that an energy from waste facility at North Quay would not have an adverse impact."

The study also looked at the economic impact should a waste water treatment works and sludge treatment centre be based at Eastside or North Quay.

Consultants found a waste water treatment works should not be based at North Quay with a burner as it would "displace" firms and impact on the economy.

However, they found no evidence to suggest any adverse impacts at Eastside, provided land earmarked for a business park and potential access road was unaffected.

Councillor Chris Morley, executive member of Brighton and Hove City Council, said: "This demonstrates the thorough approach needed to develop waste facilities."

Copies of the study are available to the public priced £10 from Amanda Parks at the county council on 01273 481846.