Some welcome the Government's decision that the Ocean Hotel, Saltdean, will not be used to house asylum-seekers. Others are ashamed.

Public pressure has eventually told. Home Office minister Beverley Hughes this week declared the Grand Ocean Hotel out of the asylum equation.

The issue has raged in the suburb of Brighton for six months. Residents feared an influx of up to 600 refugees would have a huge impact on facilities and house prices. Many staged protests.

The Government decreed the Grand Ocean and a similar hotel in Kent will not house refugees.

Ministers will instead investigate using former RAF and naval bases around the country, where health and education facilities can be provided on site.

Kemp Town MP Des Turner said he was delighted with the news as Saltdean lacked the infrastructure to deal with so many asylum-seekers. Local councillors and members of Saltdean Residents Action Group were also celebrating.

However, not everyone was overjoyed. Some felt disappointment and anger at the hype generated.

A spokeswoman for Saltdean for Tolerance and Respect (Star) said: "I'm very sad because we saw this as a great opportunity for the community to show friendship and to welcome people in need.

"I'm one of a small minority but our experience with Star is we have had so many letters and emails from people locally who have felt the same and do not want Saltdean to have an image as a selfish place. There is more of a mixed opinion than people realise."

Shanti Haft, of the Brighton and Hove Committee to Defend Asylum- Seekers, said the Government's decision was more likely to be based on cost than people's feelings.

She criticised the response of some Saltdean residents who campaigned against the proposals.

She said: "It was a classic case of attacking people who are more vulnerable, rather than those behind the problem.

"I have quotes from asylum-seekers in central Brighton who are very happy to be here. One woman had her home fire-bombed in Leeds and she feels very comfortable here.

"The people in Star would like Saltdean to be like that as well, a nice cosmopolitan place with respect for everybody."

As a response to the Government's announcement, Alison Fenney, head of policy at the Refugee Council, issued a statement on behalf of the organisation and South-East charity Migrant Helpline.

She said: "We are concerned this decision has been made partly because the local community was not consulted at the earliest possible opportunity.

"Better communication would help to dispel misconceptions surrounding asylum-seekers and would address some of the concerns before they become fears."

The majority of residents of Saltdean, however, will be breathing a sigh of relief.

In October, The Argus revealed the Grand Ocean Hotel was receiving small numbers of asylum-seekers on a short-term basis.

More than 100 people attended a meeting on the issue. Residents expressed concern that the settlement could be "overwhelmed".

In December, Brighton and Hove was ruled out as a potential destination for large numbers of asylum- seekers.

But on January 11, The Argus exclusively revealed Home Secretary David Blunkett had made a dramatic U-turn and said the Grand Ocean Hotel could be used as a half-way house for immigrants.

Brighton and Hove City Council seemed just as shocked as residents at the news.

Chief executive David Panter told councillors: "This letter has taken us all by surprise and we are clearly concerned at this volteface by the Home Office."

Rottingdean and Saltdean Tory councillor David Smith said: "I am disgusted. It does not make sense."

But Marco Pasquale, chief executive of the Grand Hotel Group Ltd, said the hotel would not be swamped with large groups of asylum-seekers. It would cater only for small numbers with professional qualifications, he insisted.

More than 250 people still took to the streets to oppose the proposals.

But other householders urged the protesters to put themselves in the asylum-seekers' shoes. Many have escaped torturous and barbaric regimes to get to the UK.

While a number remain in comparatively favourable conditions, such as hotels near Gatwick, others face being taken to accommodation centres at disused military bases such as RAF Newton in Nottinghamshire and a naval base at Lee-on-the-Solent, Hampshire.

Beverley Hughes said: "The trial of these centres is a key part of our policy for a fair and robust system for processing asylum applications."