A council which axed hundreds of jobs by cutting out hot school meals has agreed to compensation costs after a four-year legal wrangle.

But West Sussex County Council has caused another storm of protest by refusing to disclose how much taxpayers' money has been spent on the sweetener to canteen staff.

The 1999 decision by West Sussex County Council to close kitchens in primary schools left 500 part-time staff in limbo.

It also marked the start of a long legal dispute between County Hall and catering giant Castle View, which had cooked and served hot lunches, over responsibility for compensation.

Last year the dinner ladies were finally paid after an Employment Tribunal hearing at Brighton ruled in favour of the county council.

But Castle View lodged an appeal against the decision which was due to have been heard in the High Court on June 25.

Today, in a statement, the county council revealed it had agreed to make a payment to Castle View and the new court action had been dropped.

The Argus believes the payment to Castle View is around £80,000.

A council spokesman said: "There were difficult legal issues relating to a complex area of employment rights and there was a possibility that the question would have needed to be referred to the European Court for resolution.

"The two sides were happy to avoid the further protracted litigation and the county council therefore agreed to make a contribution to the sum paid out by Castle View after last year's tribunal decision.

"Both the county council and Castle View recognise that there were delicate legal issues behind this dispute.

"There is nothing in the agreement to prevent positive contractual relations between the parties in the future."

West Sussex Cabinet member for Resources Coun Colin Waller said he was pleased the legal dispute was over but he refused to reveal the financial details.

He said: "Due to the commercial confidentiality requirements of Castle View, sums cannot be disclosed publicly."

But a leading critic of the decision to axe hot meals and replace them with cold lunch boxes says the county council should say how much it has agreed to pay.

Lib-Dem councillor Brian Hall, from Haywards Heath, said: "I think this is a public interest issue and I am still sad that people had to lose their jobs and that children were caused an injustice by having hot meals taken away."

West Sussex County Council axed meals to save an estimated £500,000 a year and primary school kitchens have since been converted into extra teaching areas.