A CONTROVERSIAL waste incinerator plant in North Yorkshire will still go ahead despite a government decision to pull the scheme's funding, council bosses believe.

North Yorkshire County Councillors were due to be told yesterday that AmeyCespa - operators of the proposed Allerton Park incinerator - are on course to find alternative investment.

The proposals for the former Allerton Quarry site near Knaresborough were approved in October 2012, but the scheme was thrown into disarray in February 2013 when DEFRA withdrew £65 million funding.

But yesterday the county council's Harrogate area committee heard from council bosses who said they are confident other funding will be found.

In a report to the committee North Yorkshire's corporate director for business and environmental services David Bowe said AmeyCespa's chances of finding funding looked positive as "currently an increase in liquidity and appetite for funding such schemes and funding terms appear generally favourable."

He added: "It is anticipated that a final funding package will be provided by AmeyCespa shortly."

If funding is found the county council will then be presented with a "value for money" report and confirmed final prices for the project.