A man and a youth were captured on CCTV setting alight the perimeter fencing of a truck export business on Sunday night – just yards from potentially explosive fuel-filled wagons.

Firefighters put out the blaze at Truck Export UK Ltd on Hartlepool's Longhill Industrial Estate.

Police arrived and arrested the suspects, aged 20 and 17, but after admitting causing damage they escaped with a caution because of their previous good character.

Company boss Kevin Brough says the fire could have had disastrous consequences, and insists the pair should have been prosecuted.

But police say they took the correct action over the incident.

Mr Brough said: "It's arson, that's what I class it as. This says to me that you can set fire to anything and get caught bang to rights, but still get let off with it.

"If the fire had took hold it would have been very dangerous, because there were lorries stood nearby that run on gas.

"Can you imagine the damage it would cause if they caught fire and blew up?

"I would have liked to have had my say about what I wanted doing about it, but I wasn't given that chance.

"I would have wanted to see them prosecuted."

Mr Brough, who lives in West Park, Hartlepool, claims the police's stance goes against action being taken by other authorities against businesses over disposing of waste by burning.

A joint letter by Hartlepool Borough Council, the Environment Agency and Cleveland Fire Brigade was recently sent to all businesses on the Sandgate and Longhill industrial estates.

It stresses it is illegal to burn waste without Environment Agency permission, and calls on businesses to make sure their premises are well protected to keep intruders out.

Mick Williams, Chief Inspector of Operations at Hartlepool Police, said: "We follow Home Office guidelines in the issue of caution as an alternative to court proceedings.

"The Home Office guidance is quite specific in taking into account people's previous criminal records."