Dibden Bay campaigners were today celebrating with news that the government has dramatically rejected plans to build a £600m container terminal on Southampton Water.

Associated British Ports had wanted to build a 1.85km-long, six-berth- deep water quay at Dibden Bay which would have created 1,800 permanent new jobs.

But Transport Minister Tony McNulty, announced that he was accepting the recommendation of the Dibden Bay Inquiry inspector Michael Hurley that the environmental impact of the proposals on internationally protected new sites would be too great.

He said: "After carefully considering all the arguments and impacts, I have concluded that, overall, the scheme should not go ahead."