A major development scheme at an eyesore quarry north of Kidlington has been approved, despite warnings that an important breeding area for birds could be threatened.

Shipton Quarry was originally earmarked as one of Britain’s first eco towns, with 5,000 homes in a self sustained community.

But with the scheme not making it on to the Government shortlist, it is now to be used as a rail depot, with warehouses and a 40-acre site for car storage.

The application was strongly opposed by the local wildlife group, BBOWT, which said it would lead to the loss of one of Oxfordshire’s most important breeding areas for birds.

The quarries and wet pools that now cover much of the site have created “bird heaven” for the likes of golden plovers, northern lapwing and jack snipe.

BBOWT says infilling the giant holes and bringing in hundreds of cars will have a severe impact upon what has become a valuable wildlife site in recent years.

It is the proposal to create a motor storage centre, which will operate for 15 years, which has most alarmed BBOWT.

Matt Jackson, the wildlife group’s head of policy, said: “This will be right in the centre of the site.

“The car storage will mean a huge amount of infill. We know that it will have a huge impact on birds for 15 years and we are now trying to discover the likely impact on them after that.

“We are also looking at the likely impact on birds of giving over much of the site to forestry.”

The group is now considering whether to challenge the planning decision.

Limestone extraction will continue for another two years on part of the site, which covers 450 acres between Woodstock and Bicester.

But the Kilbride Group has agreed, as part of a restoration package, to eventually create a 35-acre wildlife and geological conservation area, where Jurassic crocodile fossils uncovered by the quarry work could be viewed.

About 40 acres of disused quarry land will also be used for forestry timber cropping.

A rail terminal is to be installed on the site, possibly by next year, to connect to the main Oxford-Birmingham line.

While this will enable material to be brought in to fill the quarries, it is understood that the link could be used for a passenger service if the site were later earmarked for housing.

Oxfordshire County Council has given the go-ahead to a scheme to develop and restore the controversial site over a 15-year period, with much of the commercial use to be temporary.

Peter Frost, managing director of Kilbride, said: “What we have today is a big ugly hole in the ground. What will be left will be significantly better.

“The planning consent will allow the extraction of the remaining minerals in the quarry.”

He said it was too soon to say when the wildlife and geological conservation area would be created and whether it would be open to the general public.