DEPUTY Prime Minister John Prescott is to preside over a public inquiry next Wednesday to look into controversial plans to turn the former Whittingham Hospital site near Preston into a prime housing development.

Preston Borough Council planning specialists say up to 400 houses can be built on the 80-hectare site -- but any more would need a £7million by-pass around Broughton to cope with the extra traffic generated by the proposed development.

The NHS Executive still owns the site and wish to sell it to housing developers.

The two-week inquiry will involve a government inspector acting in opposition to decide whether the plans go against Labour's policy on roads.

The NHS Executive will put forward their case to the panel's inquiry team along with people from Goosnargh Whittingham Action Group, Whittingham Parish Council and Goosnargh Parish Council.

Resident Frank Platt, from the 450-strong Concern For Broughton group, said the original planning application was restricted by Preston Borough Council to 375 houses but Lancashire County Council designated it as a development area and insisted 1,000 be built to cope with projected housing needs in the county.

Mr Platt said: "This whole proposed housing development thing would cause havoc in the area. More than 2,000 people are against the bypass and only four residents support it."

The inquiry will cost in excess of £100,000 of public funds.