Putting what is effectively a prison here will deter businesses from coming

Liverpool councillor Richard Kemp

A site in Skelmersdale, West Lancashire, is also coming under scrutiny.

Officials are also examining three sites near Stansted Aiport in Essex.

They are at a former terminal at the aiport, Thremhall Priory and at the Dunmow Business Park.

The 750-bed units - called removal centres - would hold refugees before they are deported and will be designed to be secure.

Similar centres already operate near Gatwick and Heathrow airports.

However, Richard Kemp, Liverpool council's executive member for housing, has condemned the plan.

He said: "We have three government departments pouring money in the Speke area and it is being regarded as one of the major growth areas in the North West.

"But putting what is effectively a prison here will deter businesses from coming.

"Furthermore we do not think this is the way to deal with asylum seekers."

The area's MP Maria Eagle, accused the city council of reacting hysterically to the proposal.

"I would like to have a meeting before I rush to judgement at the moment," she said.

Business investment

The Speke area is dominated by Liverpool John Lennon Airport and a giant former airfield which is being re-developed as a thriving business park.

Capital Bank and US Airlines are among the firms who have spent millions creating new bases in the area.

Mr Kemp added: "We are already putting together a coalition of local businesses and development representatives to challenge any plan to build the centre in Speke."

A spokeswoman for the Home Office insisted the location of the sites was still being discussed.

She said: "These locations have only been identified as potential sites and nothing has been decided."