RESIDENTS in Over Stowey have been on an emotional rollercoaster ride this week over controversial plans to house asylum seekers in a former boarding school in the village.

On Tuesday it was announced they had lost their fight against an application to use Quantock Lodge School as a 74-bed reception hostel for refugees.

Government planning inspector Philip Wilson cleared the way for what would have been one of the first centres for asylum seekers in the South West when he overturned Sedgemoor District Council's decision to refuse permission for the scheme.

But less than 24 hours later, the owners of the school, the Peaster family, said they had changed their minds and decided not to allow London charity Kaleidoscope to convert the site into a hostel due to "changed circumstances".

In a statement the family said: "In February 1999 the owners of Quantock Lodge were approached by Kaleidoscope with the possible idea of using two accommodation buildings as reception facilities for asylum seekers.

"Circumstances have now changed and for the long-term future of Quantock Lodge we have decided not to continue with Kaleidoscope's proposed planning application."

National charity Refugee Action yesterday said the Over Stowey scheme was an "incredibly important" test case and the success of the appeal was a success for race relations.

Communications director Sally Price said the Peasters' decision was disappointing: "We are certain that Over Stowey would have benefited hugely by all that asylum seekers bring to a community."

Under the charity's proposals, the school would have been converted into a 74-bed hostel for asylum seekers, although the village itself only has a population of 314 and does not even have a shop, pub or post office.

Villagers reacted angrily to the plan and subsequent public meetings organised to discuss the proposals were packed by protesters raising fears that their properties would be devalued and the local crime rate would soar.

They won the support of Sedgemoor district councillors who refused to give planning permission due to the school's rural location and lack of local facilities.

Resident David Brown said: "No-one is in a position to give a categorical guarantee that there will be no trouble. We felt there should be an adequate police presence to react at very short notice if necessary.

"How on earth, with their ever limited resources, will they be able to cope with an incident, should it occur, with asylum seekers?"

But on Tuesday villagers and district councillors were told that Kaleidoscope had won its appeal to create supervised accommodation comprising of 20 self-catering and 54 full-board beds in the village.

Part of that permission were conditions that the charity would have to ensure the teaching block to the north of the two-storey dormitory block remained available for use, along with the gymnasium, sports hall, sports field and swimming pool, otherwise planning permission would be withdrawn.

At the hearing in June, Kaleidoscope founder, Baptist minister the Rev. Martin Blakeborough, said it was these facilities which made Quantock School the ideal venue for a hostel.

"The overall aim is to provide an environment where people can access support and work through trauma in a tranquil environment," he told the inspector.

Mr Blakeborough said up to three families would be based there for their first six months in this country. Those boarding full-time would receive meals on site while self-catering families would be given vouchers and taken by minibus to Bridgwater. They would all be given English lessons.

After six months, they would be moved into bed and breakfast accommodation in Somerset to enable them to find work.

"I have no doubt we would provide a centre of excellence which could act as a model," said Mr Blakeborough.

After being told about the family's change of mind, Mr Blakeborough said he was disappointed but remained hopeful he could persuade them to think again.

Chairman of Sedgemoor District Council's planning committee, David Joslin, was initially surprised by the planning inspectors decision and said he thought the council had had a strong case against the application.

He welcomed the Peaster's decision but said it was a shame so much angst and bitterness had been caused by the whole planning application and appeal process.

The Government has already decreed that the region must accommodate 5,000 asylum seekers by next April.