THE fate of King's Mill in Settle lies in the hands of Government planning inspector John Gray, after a public inquiry closed on Friday.

Residents and business people told the inspector he should veto plans to build 33 houses on land next to the grade II listed mill, and refuse permission for the conversion of Kings Mill into 19 flats.

They claimed the proximity of housing on an industrial estate would lead to conflict which could threaten the livelihoods of traders and the safety of residents.

Mr Gray heard opposition from businesses on Sowarth Industrial Estate, including Arla Foods, one of Settle's largest employers, which operates 24 hours a day, and also from concerned residents on Mill Close. Residents feared for children's safety, with domestic and industrial traffic sharing the same access road.

Traders fear the residents will complain about noise from the industrial estate, forcing the council to serve noise abatement notices which could have serious implications for the viability of businesses.

Mike Warren, who runs a haulage business on Sowarth, told the inquiry: "I am very worried about the future of my business should the development go ahead.

"There would be families living in the houses with young children running about. The potential for an accident is very significant and the new corporate manslaughter charges are a great worry to all liable parties. We have tried to seek assurance from the council that if planning permission were granted there would be no restriction put on our operations if objections were received from new occupants.

"However, the council could give no assurances that it would not take action in respect of nuisance as this would be a neglect of the council's legal duties."

Michael Breslin, noise expert for Arla Foods, told the hearing: "An assessment of night time noise at the location of the new dwellings would be highly likely to support the assertion that a nuisance existed. In addition to the effect on current operations there would be serious implications on the dairy's freedom to intensify, develop or change its operations."

Experts for John Robert's Holdings, who have submitted the plans, argued the only valid reason for turning down the planning permission was the conflict of uses, with noise nuisance the crucial point. Their noise expert, Anthony Charles, proposed fitting bedroom windows with upgraded double glazing and acoustically attuned ventilation to combat the problem.

Craven District Council refused permission for the development and John Roberts Holdings took the case to appeal. Sian Watson, of Craven Council's planning department, said: "The council's case is based on the conflict of land use by having residential use, which is noise sensitive, being placed in such close proximity to potentially noise generating activities."

The inspector's decision is expected within 12 weeks.