FEARS that HMS Daedalus could become a prison have been lifted.

Instead, the former airbase at Lee-on-the-Solent is likely to be used for housing and industry or as a launchpad for air sea rescue operations.

Home secretary David Blunkett was urged to come clean over suggestions that a prison was on its way.

Fareham MP Mark Hoban, pictured, asked in parliament whether the Home Office had made a bid to buy the 450-acre site despite public outcry at their previous plans to build an asylum centre there.

A reply to the question came from Ministry of Defence chiefs yesterday.

They said the only two Government bodies to have expressed an interest in Daedalus are the Maritime and Coastguard Agency (MCA) and the South East England Development Agency (SEEDA).

Mr Hoban said: "I wanted to find out if David Blunkett's department had expressed an interest beyond wanting to use it as an asylum centre.

"I had heard whispers that it could be used for a prison so I was determined to get to the bottom of the matter.

"I am delighted with this news. For weeks now rumours have been circulating that the Home Office wanted to use the Daedalus site as a prison. This answer puts that rumour to rest now."

Daedalus sits 80 per cent in Fareham and 20 per cent in Gosport. Fare-ham council leader Sean Woodward welcomed the news, but remains concerned over what will become of HMS Daedalus.

He said: "Certainly the Coastguard helicopter would present no problems at all, but my real concern is exactly what SEEDA want to do with Daedalus and how much of it they want to buy.

"My planning officers will be investigating how much they have to work with the local authority on these things."

Trained pilot Mr Woodward would like to see the site used for light aviation as well as for Coastguard and Police air operations.

The Fareham part of the site is made up of aircraft hangers, a runway and fields.

In Gosport there are several industrial buildings, some of them listed.