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Hundreds of people have signed a petition against plans to turn a University of Derby hall of residence into a reception centre for 240 asylum seekers.

A petition has been circulating among residents in streets surrounding Laverstoke Court in Peet Street, Derby, after a planning application was submitted to Derby City Council by Urban Housing Services, acting on behalf of G4S - one of three organisations responsible for finding homes for refugees and asylum seekers across the country – and looking for a change of use for the premises.

People living in the area are "distressed" and "concerned" about the plan to house the asylum seekers while their applications to stay in the UK are processed, according to Vincent O'Callaghan, of Moriarty's Sandwich Bar, Peet Street. He been involved in collecting names for the petition, which was started by another local resident Debbie Regan.

Mr O'Callaghan said: "I think the lack of consultation before the planning application was put in and the lack of information since has led many people to be suspicious of the plan. People only found out about this through the Derby Telegraph."

He said: "People are concerned that these people will not be vetted before they come here and they are concerned it will put extra pressure on services in the area. People are distressed to think they have worked all their lives and then people come along and get handouts.

"There are loads of people in Derby who would love to have a roof over their heads but all many people can see is that these people are coming here and getting the rooms instead.

"No-one begrudges people seeking asylum but as a community we do not feel this is the best place to house asylum seekers."

Mrs Regan added that she has gathered more than 17 pages of signatures and is preparing to hand them to the city council. More than 20 other email objections have already been sent to the council also.

She said: "People think because students have lived in Laverstoke Court, this will be no different. But when students arrive, they have something to do during the day and are here to study.

"The asylum seekers will have nothing to do and after dark this will become a no-go area for people. I know some people are looking to sell their houses because they feel it will drag down the area. More than anything we would like a meeting with G4S to get more reassurance."

G4S has been looking for a site in the East Midlands for some time to complement its two other centres in Birmingham and Wakefield.

The planning application for Laverstoke Court states that 25 people would be employed on the site and that there would be self-catering kitchen facilities on each floor in each block.

On a day-to-day basis, the application says that residents will be asked to be in the building by 10pm, a daily register will be kept and staff, visitors and residents will have to sign in and out

Asylum seekers granted refugee status would then be dispersed elsewhere, which could be anywhere in across the country. This usually takes between three and four weeks.

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A University of Derby spokesman said that the hall of residence at Laverstoke Court has been standing empty for some time.

Derby councillors will be asked to consider the planning application but, beyond that, Derby City Council is not directly involved in the centre and is powerless to prevent it being set up if planning permission is given. The 21-day public consultation ends on Thursday, June 29.

Asylum seekers are entitled to initial accommodation in a centre for one of three reasons - while the Home Office is considering whether an individual is eligible for support, while officials are assessing the application, and when the application for asylum has been refused but the applicant has yet to leave the country.

Initial accommodation is typically large full-board hostels with shared bedrooms, living and social areas. Providers are contractually obliged to offer three meals a day, supply toiletries and bedding and provide transport to medical and related appointments.

Asylum seekers from 35 countries were dispersed to Derby – the top five being from Iran, Iraq, Sudan, Afghanistan and Eritrea. G4S currently uses 216 properties in Derby, mainly within the private-rented sector, with 144 in the Arboretum and Normanton wards.