Angle Park Sand and Gravel Company had applied for permission to extract some 975,000 tonnes of sand and gravel over the next six-and-a-half years from its quarry at Melville Gates.

But north east Fife area committee threw out the application last September following angry protests from local residents and claims that the squirrel haven would be 'decimated'.

Now Angle Park Sand and Gravel has lodged an appeal against the decision, saying that councillors acted unreasonably when they refused the plans.

The company contends that the council failed to take cognisance of advice given to them by professional advisers; that they failed to act consistently in terms of national and development plan policy and that they could not justify their decision on planning grounds.

In addition, the company says that the council was mistaken in its belief that the red squirrel is a European Protected Species, so that was not a valid reason for refusal.

Red squirrels are protected under the Wildlife and Countryside Act and the quarry company says that there would be no significant impact on the local squirrel population as a result of its activities.

Scottish Natural Heritage and other wildlife experts had been satisfied that measures that would be put in place to protect the squirrels — including establishing 'wildlife corridors' that would allow them to move from one wooded area to another — were adequate.

In its appeal, the company also says that there is a need for sand and gravel in Fife and that the operation would safeguard jobs.

The appeal will now be allocated to a Scottish Government reporter for determination.