THE ORIGINAL estimated costs of building a new container dock at Dibden Bay have soared.

While forecasters were quoting the price of the project at £738m, compared with the £500m quoted when it was first launched, some experts are still insisting that the Southampton area can still be an economic success without it.

Southampton Docks operator Associated British Ports has insisted that the huge new container terminal between Hythe and Marchwood is vital to the future prosperity of the port of Southampton and its surrounding area.

But at the on going public inquiry in Southampton's Eastern Docks yesterday, planning and economics consultant Paul Whitehouse predicted: "In my view and in the absence of any major world economic downturn that is predicted and might impact on the UK economy in the medium term, the area's prospects are excellent and in no way can be considered to be solely reliant on the existing container port or its expansion at Dibden."

He cited a series of glowing aspects of the Southampton area's presence economic health and cited a recent report issued by the City Council.

"The city," he said, "has recently seen the largest office pre-let for ten-years, to the law firm Bond Pearce, that confirms the city's growing status as one of the south-east region's leading commercial service centres.

"On the Marchwood industrial park, it is reported that there is strong demand from storage and distribution business and new industrial units are being let at record rental levels at the Southern Cross, Nursling and Calmore industrial estates.

"At the latter, for example, MSC (Europe) have taken on additional space. They are a subsidiary of the US Maritime Services Corporation, specialists in the interior fit-out of cruise ships and liners."

Coming quickly behind P&O's announcement that they were investing heavily in Southampton as a base for their growing cruise ship business, the trends in that part of the port's business were extremely positive, he suggested.

Mr Whitehouse also referred to plans by Siemens to establish a new 24-hour maintenance and repair facility for the region's electric trains in Southampton and the full occupation of the West Quay development.

Those factors had also contributed to high levels of both business and consumer confidence.

It was quite reasonable, he said to take an optimistic view about continued growth of the area's economy without Dibden Bay.

He had earlier commented on predictions in a report commissioned by ABP that a rejection of the Dibden Bay scheme would mean a lack of expansion of container facilities and would relegate Southampton to the rank of a second division port.

That report had also forecast that other parts of the economy would go into decline and ABP would also be unable to finance the dredging of the deep water channel which is vital for the big ships coming in from the oceans.

Also citing Hampshire as an attractive area for investment by big companies, he branded the report as "pessimistic" and added that there was a lack of evidence to support it.

"There is very little emerging from my analysis that suggests anything other than a very positive and very buoyant economic future for the sub-region.

"The Southampton area lacks none of the key ingredients for sustained business success and many of the long-term perceptions about its long-term potential are changing for the better," he said.

Mr Whitehouse also took issue with suggestions that the local labour force would be able to meet the demand for all the construction workers needed if the Bay plan went ahead.

It was likely, he said, that many of the workers would be recruited from outside the region and he added: "It is likely that while there will be an element of local expenditure on temporary accommodation and subsistence, much of the economic benefit will be lost through remittances and expenditure outside the area."

The recent £70m catalytic cracker construction project a short distance from Dibden at Fawley Refinery had, he said, meant the recruitment of "a substantial number" of construction workers. But they came from as far away as Scotland and Ireland and lived in temporary accommodation until the project was finished.

"The very large capital investment in the construction of the Dibden proposals has the potential to create a demand for some 600 local construction workers for each year of the development programme.

"It is unlikely that the local construction industry and labour force will be able to match the requirements, particularly in the early years of the development programme.

Campaigners who are disputing the need for the new terminal will continue to put their cases next week.

Mr Whitehouse is due to be cross-examined on Tuesday and on Wednesday.

The main action group, Residents Against Dibden Bay, will take over with their campaigning chairman Paul Vickers giving his evidence.