The Cornish Economy

HL Deb 28 February 1997 vol 578 cc1468-92

2.34 p.m.

Baroness Dean of Thornton-le-Fylde rose to ask Her Majesty's Government whether they are satisfied with the performance of the economy of Cornwall; and whether they will encourage the use of millennium funding for regeneration in the county.

The noble Baroness said: My Lords, I apologise in advance to the House for the condition of my voice. It requires me to take what is an unusual step for me; namely, reading my speech word for word. If my voice gives up on me, I hope that with the leave of the House my noble friend Lord Berkeley can stand up and take over from me.

Noble Lords may wonder why a lass from Lancashire is speaking up for the Celtic of Cornwall—or perhaps, as I am regarded in Cornwall, an "emmet", as the Cornish refer to foreigners. I am proud to take my title from my birthplace in Lancashire and a Lancashire lass I will always be. But in recent years I have made my home in a Cornish town, the historic harbour town of Falmouth. In that time I have come to realise that the south west and Cornwall in particular have been getting a very rough deal for far too long. The case I make for Cornwall is not for some special hand-out or pleading. It is for recognition that, if we are moving into an era of more regional and local communities and accountabilities, the Duchy of Cornwall has a very strong case indeed; not as Devon and Cornwall but as the Duchy itself in its own right, west of the Tamar River.

For the truth is that the economy of Cornwall is facing great difficulty. Cornwall has always suffered for its distance from the centre of government: a kind of geographical postscript to England is how many in Cornwall regard it. It is possibly a case of "out of sight, out of mind". Even today's better road and rail connections have not overcome that.

Every relevant economic indicator for Cornwall is at the wrong end of the scale. Unemployment is the highest for any county area in Britain and it is continuing to rise, even against the national trend. In January, when the overall national level fell to 7 per cent., in Cornwall it increased—the only county to do so—to a level of 9.2 per cent. In West Cornwall that rises to 11.3 per cent., in the towns of Helston, Camborne and Penzance. Since the publication of those January figures, some 300 jobs have been lost in the St. Ives Creamery in St. Erth, and another 300 have gone at English China Clay. Those two closures alone would put up the unemployment rate by at least 1 per cent., possibly 2 per cent.

Average earnings are some 20 per cent. less than the national average. The GDP per capita—a crucial overall measure of the economic welfare of any county—at 73 per cent. of the UK average is almost the lowest in the country. Unbelievable as it may sound, it is lower even than Merseyside.

On top of all this, the people of Cornwall have to grapple with the relatively poor public transport. The economy of Cornwall is as fragile as the landscape is dramatic and it is in a dire state. The unemployment figures reveal a steady decline in jobs in the primary sectors, such as agriculture, mining and fishing. There is but one tin mine left in Cornwall, grimly hanging on, having been rescued by hundreds of local people who bought shares to keep it alive.

Noble Lords will not need reminding of the difficulties of the fishing industry. Whole communities in Cornwall, in places like Newlyn and Looe, continue to depend upon fishing, but it is getting harder and harder and there is no alternative employment at the moment. The manufacturing base is relatively small. While there are many first-class companies in Cornwall, they are mostly small. Some 90 per cent. of all companies have fewer than 24 employees. Tourism is certainly an important employer, but it is seasonal and many of its jobs are part-time and low paid. At the same time, Cornwall's population is growing, above the national trend, fuelled by inward migration of working people and their children. Cornwall's population has grown by 13 per cent. since 1981, the fastest rate of growth after prosperous Buckinghamshire and Cambridgeshire.

Yet Cornwall still has one of the lowest percentages of its population in England economically active. There is also a high net outward migration of young people because there are no broadly-based higher education facilities at all in the county. That is a point to which I shall return later. Cornwall probably has the lowest population per square mile in the UK. No town has more than 20,000 people living in it. Those are worrying trends which present higher delivery costs in providing essential services like health, social services and the fire brigade. Yet that is not recognised in funding from central government.

Perhaps I may just give a snapshot of one ward in the area of Falmouth in which I live. Some 31 per cent. of the households are poor; 34 per cent. of all the children in that ward live in homes where no parent has a job and 23 per cent. of children live with a lone parent. Yet the privatised water industry of the south west has increased charges by 100 per cent. since privatisation compared with the national average of 39 per cent. We have to provide some hope for the future of the people of Cornwall. There is a huge backlog of low standard accommodation crying out for repair and renovation. Local authorities such as Carrick Council know of some 30,000 properties in the area which are in need of urgent attention. If we could get to work on those it would generate demand, provide jobs and give a real spin to the flywheel of the local economy.

Many of the statistics that I give to your Lordships are invisible to the politicians at both Brussels and Westminster. That is because Cornwall is lumped together for statistical purposes with Devon or, even worse, with the south west. The distorted picture shows a highly prosperous region with above average level of wealth and below average unemployment. Why is that? It is because Wiltshire, for instance, with only 3.5 per cent. unemployment, is included with data for Cornwall and the south west. Yet it is nearly 250 miles from Penzance to Swindon, which is further from London than my own county of Lancashire. I cannot imagine Lancashire accepting that it should be lumped in with London. The purpose of this Question is to reduce that invisibility and put Cornwall's special problems on the map in their own right—but not with special pleading.

I should mislead your Lordships' House if I did not also point to some of the good news from Cornwall. There are many excellent firms, including substantial exporters, in high technology and niche markets, although most of them are small and do not employ large numbers. The county attracts some 3½ million visitors a year—more, I believe, than the whole of Scotland. Cornwall's tourism industry has many strengths, although it receives under £½ million from the West Country Tourist Board. Scotland, attracting fewer tourists, receives £16.9 million annually. Think of what could be done in Cornwall with that kind of money.

The education service is good. Cornwall has higher than national average GCSE results. The county council's local education authority received a recent glowing report from the Ofsted inspectorate. There is a fine dual carriageway from the M5 at Exeter and what I call passport control to Bodmin. It replaces the old, tortuous A30 over Dartmoor and Bodmin Moor. I congratulate the Government on announcing completion of the A30 upgrade by agreeing to the completion of the Goss Moor section. But, I respectfully ask the Minister, when will it happen? I hope that the Minister can tell me when it will be started and when it is expected to be completed.

Road access is important to any inward investor. It is among the top three questions any investor asks. Can the Minister say if there is an early plan to upgrade what must surely be the only 14 foot 3 inch high bridge on any trunk road in the United Kingdom? It is a nightmare. It is essential that that bridge is widened and raised.

Cornwall's own-generated In Pursuit of Excellence initiative has brought together people from all the various interest groups in the county. It has galvanised people to work together for the recognition of excellence. It includes many of Cornwall's smaller businesses. South West Enterprise—again for small companies—is doing a grand job. But there is no Cornwall redevelopment agency specially for the county. I understand that my noble friend Lord Graham may well refer to regional development and I await with interest his contribution.

The people of Cornwall are doing what they can to help themselves. But what your Lordships have just heard is not good enough. It needs a kick start and a few big projects to act as catalysts for economic growth. There too, the county is trying to help itself.

I would like to mention three key projects. The first is the Exeter University initiative, which is essential because there is such a paucity of higher education provision in Cornwall. Of course, in Falmouth, we have the excellent Falmouth College of Art and Design, which is nationally recognised for the quality of work it does. But that is not enough. As noble Lords will recognise, it does not provide higher education across a board range of subjects. In fact, there is no higher education provision in Cornwall that provides that broad range from within Cornwall.

Exeter University provides a wide range and the project, if millennium funds are forthcoming, will facilitate an international institution in the county. Exeter will move all its activities in Cornwall, including the Camborne School of Mines, into a new campus at Trereife just outside Penzance. Penrith district council, the local authority, despite tight funding, has voted the £1 million which is needed to purchase the site. It will create 300 new jobs directly and at least another 240 in the community. There will be 5,000 students, full-time and part-time, on that new campus. It is essential that the Millennium Commission gives its answer this summer if that year 2000 deadline is to be met.

The second initiative is the Eden project, an imaginative initiative, which is a development for science and research to investigate man's dependence on plant life. It will be a major visitor centre and will provide innovative research and a splendid educational establishment of worldwide significance. The third initiative is the planned move to Falmouth of the National Maritime Museum's small boat collection, a project which will bring visitors into Falmouth and create jobs in the area.

All three initiatives will be immensely important catalysts and must not be allowed to fail. Each is going through the complex hoops of seeking to secure lottery and EU funding. On this point, in a county with some 90 per cent. of businesses employing not more than 24 people, cannot some way be found whereby "in kind" factors, such as work and time, can be agreed to be a part of what is defined as matching funding? It is a serious point for Cornwall. Small and medium-sized enterprises usually have few funds to spare to give by way of grants. There are no FT 100 businesses in Cornwall to help with funding. There are branches, yes, but money is quite often concentrated where the company head office is.

I ask the Minister for an assurance that her colleagues in another place who have responsibility for these areas, especially the Deputy Prime Minister and the Secretary of State for National Heritage, will do all they can to ensure that these projects do not fail.

Finally, I call on the Minister to ensure that there remains a strong floor of EU regional funding for Cornwall. The present objective programme is good, but many projects are having difficulty because of the complexities. I welcome the Government's commitment to seek "NUTS 2" status within the EC so that Cornwall can have its own discrete statistics recorded and published so that they are not lost in the wider prosperous south west. I would welcome such an assurance from the Government on regional funds which are to be renegotiated in 1999, but perhaps I should address that question to my noble friend on the Front Bench, who no doubt will be in a position in a few weeks' time to give me those assurances.

Cornwall needs symbols for the future. The Exeter University plan is one; the Eden project and the Falmouth project are others. We need less rhetoric and more action. The people and their representatives are prepared to do what they can to help themselves. We need central government to take their fair share.

2.48 p.m.

Lord Saint Levan

My Lords, I am most grateful to the noble Baroness for calling attention to the performance of the economy in Cornwall. After she has spoken so forcefully in our favour, I can assure her that if she comes to Cornwall again no one will call her emmet.

I really should be in Par this afternoon in the heart of the English China Clay district where my wife is opening a new Marie Curie cancer care office, but I am very grateful that the noble Baroness has persuaded the House to debate the economy of Cornwall.

As the noble Baroness said, it is evident that, as a result of a report on property in Cornwall in the 1990s, prepared by Bristol University, on a very wide range of indications Cornwall is a very deprived county. These include low weekly earnings, high rates of unemployment and, in the remote rural areas, lack of good transport facilities and even medical and education opportunities. However, the environment in Cornwall is now very favourable for a dynamic expansion of business in the country. There is a proven record of successful companies trading profitably in Cornwall at the moment.

One problem is that industrial land in Cornwall requires substantial public investment in infrastructure. The private sector cannot make profits with such a heavy bill for roads and sewers. An example of that is Hayle harbour which, after much effort and many false dawns, still lies derelict. The difference between funding for Wales, Scotland and Cornwall has been mentioned by the noble Baroness. I believe that it is a hangover from the days when Wales and Scotland themselves were facing very serious social challenges, particularly in the coal mining industry and in Clyde shipbuilding.

I am responsible for a number of the jobs in the tourist industry and it does not seem to me to be at all fair that last year the West Country Tourist Board received only £400,000 from the Government for the whole of the south west, whereas Scotland received over £16 million and Wales nearly £15 million. Also, as the noble Baroness said, it is clearly wrong that statistically Cornwall should be linked with Devon and even further afield.

Over the past fortnight all of us in Cornwall have been deeply shocked by the recent loss of 307 jobs at the St. Ivel creamery at St. Erth and the 300 redundancies announced by English China Clay. We were pleased that a delegation from Cornwall, including Members of Parliament and county and district councillors, was so well received by the Government Minister for the south west, David Curry. As my local newspaper the Cornishman said, they were pushing at an open door. It was particularly good news that the Devon and Cornwall Enterprise Council would be given the necessary resources for the training of men and women for alternative jobs. It was also good that funding would he provided to replace the business advisers who have recently been axed from the business advisory service of the Rural Development Commission, which has traditionally funded money into rural areas.

It is very sad that the successful services for businesses in rural areas, until now provided by the Rural Development Commission, will not be reinstated. I hope that Ministers will reconsider that. It is not easy to see where new jobs will be found, especially for skilled workers from the St. Ivel creamery. The greatest demand for jobs and vacancies comes from the hotel and catering section, with much lower wages and less security.

As the noble Baroness said, the primary industries in Cornwall—agriculture, mining and fishing—have all suffered in the numbers employed. The biggest provision of alternative employment might come from the small businesses employing fewer than 10 people. There is a predominance of small businesses in Cornwall. It is important that these firms should receive assistance from the Devon and Cornwall TEC.

I would strongly urge Ministers that, if jobs are to be protected in small businesses in Cornwall, additional funding will be vital in the future. I have personal experience of the value of help provided by the Training and Enterprise Council. I am a director of a company with electrical and television shops all over Cornwall. Due to the recession and the competition of out-of-town new shopping developments, we were very concerned about the future of the company and probable redundancies and loss of jobs. We consulted the Devon and Cornwall TEC for independent advice, and the advice, for a nominal fee, was of great value.

I understand that Ministers are fully aware of the lack of available factory units in Cornwall. Perhaps English Partnership is the only agency with the necessary financial structure to address this problem. I hope that the Government will encourage English Partnership under its Factories First Initiative Scheme to build factories and develop industrial land. Eight hectares in Restormel and six acres in Penzance are required immediately to replace lost jobs.

Local authorities have done a magnificent job in designating specific areas of land for new factories. In Cornwall there is a large amount of land which is derelict and ripe for reclamation.

As I live close to the fishing port of Newlyn and am on the committee of the Fishermen's Mission, perhaps I may advise your Lordships that the problems that have been debated previously in your Lordships' House are still of great concern. It is important that the entire process of quota hopping should be resolved for the benefit of British industry before we have the intergovernmental conference.

Ministers are right to think that Cornwall has in the past received considerable help from regional funds and there are grounds for hope of a less gloomy economic situation in the future. It should be remembered that high-speed InterCity trains in the south west were first introduced in the late 1970s. Since bus deregulation, "Hoppa" buses provide a much better service to remote rural areas. The county planning officer pointed out in his comments on the revised county structure plan that in the 1960s there were virtually no dual carriageways in Cornwall, but now, in the 1990s, many of the main towns of Cornwall have been bypassed. There has been a large increase in private car ownership. There have been massive improvements to the A.30 and the A.38 roads. We had a debate some time ago in your Lordships' House on the Okehampton bypass when many speeches were made in favour of it. That bypass has been of enormous benefit to farmers and other businesses in Cornwall.

There have also been considerable benefits to Cornwall from European grants. I often think that the commemorative signs put up on completion of a scheme financed by funding from Europe are far too modest. Perhaps there could be larger and more prominent displays. However, the forms are difficult to complete for applicants and many of us cannot find the necessary matching funds. It is not only important—it is vital—that the Government should support Cornwall County Council's bid to be classified separately from Devon for European funding. Such a classification would give Cornwall the highest rate of European economic support.

I echo what the noble Baroness said about the campaign "In Pursuit of Excellence". It has done a good job in encouraging wealth creation in Cornwall. Much has been done to increase awareness of Cornwall as a place for sound business investment. "In Pursuit of Excellence" is doing a marvellous job persuading people of the tremendous advantages of doing business in Cornwall. Cornwall's manufacturing base accounts for more than a quarter of the gross domestic product. Many companies in Cornwall can boast of considerable success in exporting their products. Exporting is vital for any successful economy. The Duchy of Cornwall education award scheme is encouraging school and college students to become involved with the wider business community. The campaign particularly wants more funds to enable Cornish companies to promote their wares at world trade fairs. I believe that other countries provide such help.

I am personally involved in tourism and farming in Cornwall on which a very considerable number of jobs depend. The future prosperity of those industries is, to say the least, extremely precarious in Cornwall. I have been at two meetings of farmers recently when two separate bank managers warned that the relative prosperity of the past four years may not continue even without taking into account the problems of BSE. The future of farmers growing early potatoes and vegetables in west Cornwall is even more uncertain. We have had two bad seasons due to the weather. Even with the help of the new farm marketing co-operatives, it is difficult to see how it will be possible to be paid reasonable prices when the buyers for the supermarkets are buying so much produce from abroad. In the recent frost which lasted 10 days in Cornwall, it was said that they were even importing vegetables from America. That is, of course, a commercial problem over which Ministers have no control, but it does highlight the precarious situation of the Cornish economy.

We have experienced two good years for tourism due to good weather and the magnificent work done to promote tourism in Cornwall by the tourist boards and the Cornish Association of Tourist Attractions. However, I am worried that we now have to rely on foreign visitors as such a large proportion of the visitors' trade. We rely particularly on the Dutch and Germans. The number of foreign visitors can suddenly drop without warning due to currency fluctuations, changes in holiday habits or competition from cheap package holidays, particularly to Turkey and South America. Last week I was informed of one minor case involving a fall in income from German visitors. The YMCA in Penzance relies to a very large extent on German students. Last year there were a number of cancellations. The reason given was that their mothers were afraid that they might inadvertently eat British beef disguised as hamburgers or Cornish pasties.

There may be good arguments in favour of the minimum wage for part-time workers in tourism, but there is no doubt that it will cause employers a few headaches as well as inconvenience from the measures and regulations contained in the social chapter. I suggest that without greatly increased funding for tourism in Cornwall there is a real danger of a large loss of jobs. The jobs may not be well paid but part-time work suits a good number of families with children or those where both partners are working. There is undoubtedly an enormous amount of poverty in Cornwall behind the tourist image of well-kept villages and beautiful countryside. I am president of Cornwall Church Action for the Unemployed which, together with the Duke of Cornwall's Princes Trust and Church Action on Poverty, tries to help people in ways that bureaucracy cannot reach. The Bishop of St. Germans has organised a conference in St. Austell next March to give unemployed and socially deprived people a chance to talk about their lives to policymakers on the county council and other local authorities.

As the noble Baroness said, the worst problems are the price of electricity and the fact that water bills have gone up by 100 per cent. There is also a problem of affordable rural housing. It is sad that local authorities do not have the funds to enable housing associations to build and rent affordable homes. In my own district of west Cornwall the local authority is free of debt and is doing a magnificent job with money from council house sales. At present I believe that three housing association projects are under way. I hope that Ministers can do more to encourage housing associations. It is hard to see how affordable accommodation for local people can be provided by the private sector. I own a number of cottages that are occupied by pensioners or low-paid workers. The cost of repairs, insurance and management means that there is a considerable annual deficit that I must fund out of other income.

The question that is asked is whether the Government have done enough for the economy of Cornwall and, if not, whether more millennium funds should be released to Cornwall. Obviously, the very exciting Eden Project that is before the Millennium Commission would be a vital boost to visitors to Cornwall and would create many well-paid jobs in the St. Austell area. The Millennium Commission also has an important proposal for a university for Cornwall. The plan for a university has widespread support from all political parties in Cornwall. I hope that it will be actively supported by the Government. Cornwall has excellent sixth form and technical colleges but a vocational campus would greatly improve the county's educational base. Far too many young people leave Cornwall for higher education in other parts of the country. The Vice-Chancellor of the University of Exeter has said that at the moment the greatest need is for a commitment to provide capital. Once someone starts, others will follow. We also need an early decision on funding from the National Lottery and European sources.

In my view, the Minister for the south west has been very effective in pressing the case for the economic regeneration of Cornwall. I believe that the Government's heart is in the right place so far as concerns Cornwall, but I hope that some of the questions that are raised in this debate will receive very serious consideration.

3.4 p.m.

Viscount Waverley

My Lords, this Question exposes a raw nerve. People in Cornwall are disadvantaged, with the GDP gap between it and other parts of the United Kingdom becoming more acute. The only question is: what can be done about it? Support for positive action comes from all quarters. The Lord Lieutenant, Lady Mary Holborow, mindful of any political divide, rightly feels that, Cornwall with its high unemployment and very low weekly earnings really needs to be looked at as a special case like Wales and the Highlands of Scotland". An acclaimed recent study by Plymouth University concluded: Cornwall is a problem county in a prosperous region. Crossing the border between Devon and Cornwall is like falling off an economic cliff. Supporting figures, caused by Cornwall losing so many of its traditional industries, are on the record and indisputable. I shall not dwell therefore on existing ground but consider differing approaches to rectify the situation.

That has to come as a mixture of public funds and private investment to revitalise the local economy, combined with expansion of the tourism industry at, I believe, the quality end, and equally as important, implementation of the two substantial projects, the Eden project at St. Austell and the University project at Penzance, both by millennium and European structural funding.

Before dealing with the specifics, however, I wish to add my voice to the vital matter of delinking European regional classification of Cornwall from its wealthier neighbour, Devon. There is a hidden imbalance that must be corrected to enable grant-aid to flow directly to Cornwall and so allow an economic level playing field.

Campaigning must start now, in face of possible opposition from Brussels, as the European Union is set to redefine its regional boundaries post-1999 and so identify areas of special need. An altered designation would not only give Cornwall access to a larger budget but also permit projects to qualify for a 75 per cent. grant rather than just the 50 per cent. at present. Will the Minister please give an assurance today that it will press hard for the case? Indeed, Mr. Robin Teverson, the local MEP must also be encouraged to negotiate, after the national consultation stage, with Eurostat and the European Commission. Success would go a long way towards correcting the economic imbalance for Cornwall, for I have seen at first hand the extraordinary transformation of a region's fortunes through Brussels intervention.

Other key issues need also to be addressed by government. We have already heard of some of these this afternoon. The delays in improving the spine road, the A.30, to include dualling and rebridging at Goss Moor, remain a missing link in Cornwall's continued infrastructure improvement and are a major concern and deterrent to some investors.

Appreciably increased distribution costs are generated by up to one hour additional transport time on eastbound traffic by needing to divert high-cube lorries around the bridge. That is not helpful and needs urgently to be addressed. Commercial traffic must contend in addition with horrendous traffic through the summer when distribution operations must compete with the tourist deluge. Why are the Government unwilling to accelerate that project? There has been unanimous support since pre-planning meetings as far back as 1994. The scheme needs to advance.

Will the Government please commit to making the bridge top priority for funding once the decision is made; and, secondly, ensure that the railway issue does not hinder the road development. I am sure that it has not escaped the Minister's attention that there are two Tory marginals being contested in the upcoming election so what better time than today for an announcement?

There is potential for great cause for concern over the continuation of the Newquay to London air link. Currently the plan is to move the slots away from Heathrow to Gatwick, which probably affects Plymouth more than Newquay; but there is a reliance on continuing service from Plymouth to keep the Newquay service viable. What can the Government do to ensure that the Plymouth to London link remains open, and, ideally, will they use their good-offices to allow the service to remain at Heathrow?

I now want to turn to an emotive subject—the question of government incentives for attracting employment from one region to another. I should like to know why Wales has been such an apparent increased beneficiary of grants over Cornwall—up to three times the value, I understand?

I am tempted to ask for a costing of a hypothetical scenario. I shall not. But what I do ask, however, is this: what are the criteria and why is Wales such an apparent disproportionate beneficiary? What is the policy between regions for work-creation funding? A fair distribution of grants around the regions must be the right and just approach. Current policy suggests a certain iniquity. I shall wait for the Minister's reply before passing final judgment, but would point out that whatever it is Wales is doing needs to be replicated.

In the grander scheme, there are other matters which also need to be addressed. Improving the supplier base required to support investors by resourcing locally and so enable them to grow into world-class companies, is important. This can be achieved through education addressing and reducing the long-term skill shortages needed to support business growth and would require high quality training in contemporary business theories and best practices along with a dynamic link to industry.

As a point of strategy, there are some who say that there are too many fragmented groups promoting Cornwall, creating a co-ordination problem, and that what is needed is a well thought through strategy backed by a single voice—a one-stop shop. One of the big questions is whether it is feasible for Cornwall to have its own development agency, or whether it should continue to combine with Devon to have critical mass, or, to put it in the words of Sir John Banham, to be a large enough blip to be on the radar". I accept fully that Devon and Cornwall can be marketed jointly, but the important factor is that there must be a coherent Cornish strategy forming part of a wider promotion in overseas markets.

While the noble Baroness, Lady Dean, and Mr. Matthew Taylor, during his recent adjournment debate in another place, should be thanked for their respective initiatives in highlighting the many difficulties facing Cornwall, it should not be forgotten that there is also good news—not least Cornwall itself.

The peninsular represents some of the best that Britain has to offer with multiple needs being fulfilled. There is, for example, a willing, reliable and affordable workforce not known for industrial problems; many suitable cost competitive facilities and sites; government funding assistance and a commitment at least to continually improving infrastructure. There are also excellent standards of education, notwithstanding concerns as outlined by the noble Baroness, Lady Dean, recreation and hospitals. Indeed, I had occasion to spend the weekend before last at the Duchy Hospital in Truro for a minor operation and can testify to the dedication, professionalism and general approach which, with regret, is now not so often found in this hectic world in which we live.

Nevertheless, I believe that we must balance the undeniable case for special assistance for Cornwall with believing that the news is necessarily all doom and gloom. There would be something inherently wrong if Cornwall could not attract more than its fair share of foreign direct investment; after all, the United Kingdom is second to the United States in investment volume, with 40 per cent. of all inward investment into the European Union coming to our shores. There is still an increasing realisation for the need by foreign companies to have a direct presence in the European Union.

I would, however, caution those responsible in such matters to be aware that enlargement of the Union will bring increased competition, because exactly what Cornwall has to offer will also be offered by many others. Cornwall, nevertheless, provides a perfect springboard to organisations offering financial services, data processing, telephone communications or any other high value added industry. They need look no further than Cornwall for their European or domestic corporate offices. Post deliveries to London and the Continent take no longer than if posting from Windsor or Cardiff; and the telephone network gives competitive world-wide access.

All the more reason for my disappointment to hear this week of Virgin Intercity creating 300 jobs for a call centre in Edinburgh in connection with its rail link which terminates at Penzance. If I were more directly involved, I would certainly look for an explanation from those responsible in the south west as to the reasons why. This type of job creation would have lent itself ideally to Cornwall.

Given these uncertain political times with the upcoming election, I want to encourage the Labour camp also to defend some of its stated policies. Clearly the emotive subject of the minimum wage might shortly raise its head. This is a delicate question, not least because pitching it at the wrong level would do uncountable damage to the Cornish economy. My Lords, how will that be dealt with?

Will a future Labour government continue to have a Minister responsible for south west affairs? The Government have clearly shown their commitment to the area by creating such a post. The Labour party has said it would restore business rates to local control. Will there be a proper system of equalisation to reflect Cornwall's small business base measured against needs? That is important, for without it the policy could be a disaster for Cornwall. I understand that new unified business rates are as much as 30 to 40 per cent. higher than, say, sites outside Birmingham. And lastly, Mr. Frank Dobson, the shadow environment spokesman, has attacked what he determines is the iniquity of the grant system that seems to give Westminster City so much. The point behind that is that visitors' nights, on which Westminster scores highly, and arguably unfairly, is crucial for Cornwall with its 25 million visitors' nights per annum. A policy which attacks Westminster that affects Cornwall could be a nightmare scenario.

In conclusion, Cornwall is not looking for a special deal, just a fair deal and so in that spirit I have no doubt that I shall return to this matter, failing hearing positive news from the Minister; but, in the meantime, I am off to traipse the spectacular rugged clifftop walk between Port Isaac and Port Quin.

3.17 p.m.

The Viscount of Falkland

My Lords, I am most grateful to the noble Baroness, Lady Dean, for giving us the opportunity to speak about Cornwall. My late father, who was not a frequent speaker in your Lordships' House, made his maiden speech, I think in 1964, on the subject of the economy of Cornwall. I recall that he had an excellent brief from the English China Clay Company. I tried to dig that out in the short time available before the debate but the precarious ladder and the time available made it seem too risky. I am not such a gambler as that.

I have spent a good deal of time in Cornwall. My father lived there. I am a Devonian and my mother was a Lancastrian. My Devon roots come from just two miles inside the Devon border at St. Giles-on-the-Heath, which is two miles from Launceston.

Cornwall is a remarkable county. I was fascinated by it as a boy. It has extremes of landscape. It has the most extraordinary variations of climate—10 degrees in January between the north and south coast. It produces flowers and vegetation the like of which are not seen anywhere else in the British Isles. You can see hydrangeas, myrtle, azaleas and rhododendrons of a kind and a size unequalled.

As the noble Baroness will know, Cornish people are very particular. They are extremely independent-minded and articulate, very much like the Welsh. They are very fond of singing. However, when my father lived in Fowey, I found that on one side of Fowey were the people who had settled in Cornwall; for example, people who had retired from the Army and so on. To see the true Cornish, you had to go to the other side of the river, to the pubs and so on, to hear the singing. Sometimes, you would have thought that you were in Wales, hearing the quality of the singing. The Celtic language of Cornwall is of the same type as that spoken in Brittany and Wales. I am glad to say that in recent times, probably over the past 20 years, more people speak Cornish than they did 30 or 40 years ago.

On these Benches, I am somewhat Euro-sceptical in many regards but if I could be optimistic I believe that if Europe progresses in the way that we all hope it will, Cornwall may do rather well within a closer Europe. If you go across the Channel to the northern coast of France there is an extraordinary difference. Cornwall is a very poor county; indeed, it has an unemployment level of 25 per cent.—the same as some of the poorest parts of Europe. Britain has a very high unemployment level. Yet along the coast of Brittany, which faces Cornwall on the other side of the Channel, you will find a greater concentration of its peculiar qualities and of its history and tradition than exists in Cornwall which resembles it in so many ways.

At some stage in the not too distant future—I agree with other speakers in this respect—I hope that Cornwall will be viewed as the unique county that it is, not only for statistical purposes but also for other purposes. I fear that tourism in Cornwall is somewhat overemphasised. The noble Baroness and I may disagree in that respect. The great influx of tourists into Cornwall took place because of people's ability to take paid holidays, and so on. They went down to Devon and Cornwall, bringing about an enormous change in the coastal area and creating a huge hotel trade. However, with the growth of tourism in Europe and the advent of cheap travel, many people whose mothers and fathers might have gone to Cornwall and Devon go instead to Spain, Portugal, Malta and so on.

Cornwall has a most unique geology and history. After all, in Cornwall you will probably find more prehistoric items of interest than anywhere else in the British Isles and you will see more unspoiled battlefields, or unchanged battlefields, from the time when such battles took place. Noble Lords will recall that during the Civil War Cornwall was uniquely Royalist for a long period thanks to two extremely gay—that is, "gay" in the old-fashioned sense of the word—and dashing cavaliers, Sir Ralph Hopton and Sir Bevil Grenville who finally capitulated when they could not agree as to who was the most senior of them at Pendennis Castle, which I believe is close to where the noble Baroness lives. There was also the extraordinary march from Cornwall in the 15th century to protest against the tax to levy money for the Scottish wars. The Cornish were only stopped at Blackheath which gave an enormous fright to the throne at that time.

Cornish tin mining has been of long duration. I am not sure whether the relationship with the Phoenicians is not slightly apocryphal. There is good evidence to show that there was trade with the Phoenecians as early documents from that part of the world refer to the "tin island"; and, indeed, many think that Lundy Island may be that island. Certainly, the Romans found no opposition when they invaded Cornwall and, as recorded in contemporary documents, were surprised to find the people industrious, articulate and prosperous. The Saxons invaded Cornwall and pretty well laid the place to waste, so that at the time of the Norman conquest one finds very little of what might be called a co-ordinated Cornish identity.

Cornwall has an extraordinary history. From the tourism point of view, I would suggest that it needs to be regarded as a high, added-value area. I say that because the kind of things that it offers are irreplaceable but require much effort as opposed to just lying on a beach, playing golf or doing the things that people do as laudable pastimes. There is so much more in Cornwall. That is why I support the noble Baroness in the millennium project—the Question on the Order Paper mentions "millennium funding"—for a University of Cornwall. That is an excellent idea; I hope that the Government will support it. Not only would it bring employment to Cornwall; it would also provide an additional opportunity for people to go into further education. It would also offer the possibility of concentrating on selling the unique character of Cornwall.

This is all a case of looking to the future and at long-term possibilities. Quite rightly, if Cornish people should hear of this debate they will wonder why I am taking such a long-term view when at this moment people in Cornwall are suffering from high unemployment. I am told that the air link between Heathrow and Cornwall may not exist for much longer. If that happens, companies will have to think twice about establishing themselves in Cornwall. The loss of the air link would be an enormous deterrent to executives travelling to Cornwall.

Like the noble Baroness, I am glad that the Government have agreed that the A.30 needs to be further improved, but when will that happen? Cornwall has much to offer which, in my view, has been under-exploited and under-developed. It has a peculiar and rich culture and heritage to offer tourists as well as others. Within the medium and long term it must offer food for thought for those who seriously want to develop this region of Europe which has enormous value. I am a Devonian but I must admit that Cornwall probably has more going for it than Devon. Devon is a richer county in any case. I hope that the unique character of Cornwall will be recognised.

I hope that the statistical classification will take place. We and the Cornish can then focus around the university and its activities. The other millennium project, the Eden Project, is interesting. I believe one newspaper described it as the largest greenhouse in the world. There is no better place for it. It is unbelievable how plants flourish in Cornwall. Of course many of the plants used in the project will be grown under glass if it were to go ahead. That would draw an enormous amount of higher added value tourism to Cornwall. I am sure that it would be a case of higher added value rather than high volume, small margin business which has destroyed so much of the hotel trade in the western peninsular. I do not know whether any of your Lordships have had a real Cornish pasty.

Lord Graham of Edmonton

Yes.

The Viscount of Falkland

I am not surprised. The noble Lord, as we know, is something of a gourmet. A Cornish pasty is an extremely expensive thing to make. It requires special meat, special potatoes, special pastry and special herbs. Various people have tried to create small businesses to export them but that has been difficult because of the high overheads and their inability with under-capitalisation to develop the market. But there are many such things that are special to Cornwall, both as regards food and other areas.

What better place is there for large horticultural projects than the extreme west of Cornwall? One would expect daffodils to be grown there but there are many other possibilities. Cornwall has been linked with other counties. That has been done for perfectly good reasons but it does not work to link Cornwall with other counties in the western peninsular. They all have their particular needs and problems. I repeat that Cornwall is special. I am sure that if it were developed it would yield great profits. As the noble Baroness knows, there are many educated, able and lively people in Cornwall—as, I am sure, there are Lancastrians—who are able to develop these ideas and promote an under-used British asset.

All the other points about Cornwall have been mentioned. It is a shame that English China Clay is laying off people. I do not know the reason. When the noble Baroness replies, perhaps she will be able to tell us. The china clay is peculiar to Cornwall. The curious granite structure was caused by eruptive activity millions of years ago. It created the extraordinary kaolinisation which produced this quality material. The material comes mostly from Par where, I believe, the noble Lord, Lord Saint Levan, should be this afternoon. It is sad that English China Clay, upon which the Cornish people have depended for so long, should be laying off people.

I am optimistic about Cornwall because, like most Celtic people, the Cornish are lively and imaginative. Given the opportunity, I am sure that they can overcome the problems, making Cornwall again the most extraordinary area.

3.30 p.m.

Lord Graham of Edmonton

My Lords, having heard the earlier contributions, I began to think that I had stumbled into a warm, family-like debate. In her able introduction my noble friend Lady Dean introduced the debate without a trace of political malice. She recognised, as do many others, that in such issues the people of Cornwall will get nowhere if they mount a political charger and accuse either one political party or another of reneging on commitments or forgetfulness. This afternoon we have had a first-class demonstration of a Back Bencher in this House seizing the opportunities which our procedures allow to discuss her concerns about a local issue. She has pitched the debate at the right level.

No one sought to blame unduly either governments or circumstances. I shall not depart from that path. Yet at the end of the day the message given concerns the sense of unfairness felt. The people of Cornwall have done no wrong and have done no harm, yet they seem to have got the dirty end of the stick compared with others.

I wish to add a few words of support for the case for fairness. I begin, as have most noble Lords, by parading credentials for speaking in a debate on Cornwall. From 1943 to 1945 I served as a member of the Royal Marines. Between the three depots of Chatham, Portsmouth and Plymouth, I had the good fortune to be allocated to Plymouth. I was Plymouth rating, PLYX 112105, corporal, and proud of it. I tramped many a mile out of Plymouth over the bridge into Cornwall, and began to love the place, especially when I found the orchards full at a certain time of the year. The people were hospitable and I was made very welcome. Sadly, the last time I visited Cornwall was on my way to the Isles of Scilly for the funeral of my late and still lamented former Prime Minister, Harold Wilson. Every speaker has professed a deep love of the people and the place.

However, on behalf of the Labour Party I have a duty warmly to welcome the possibility that the Government—whether it is this Government or another—recognise that there are as many disparities in this country as there are between those who live in the third world and the developed world. There are disparities between those who live in the luckier parts of Britain and those who live in the less lucky parts. Life in Cornwall certainly does not appear to be fair. The nagging thought that I have is that the talent, skill and natural resources of the place that we call Cornwall and the people we call Cornish men and women are being wasted. I do not necessarily mean with a capital "W"; they may not be wasted entirely. However, it must concern all of us as politicians that there are communities who resent the fact that they do not receive an equitable share of what is going.

I could relate a great many of the statistics, but they have all been given. I repeat, I speak without malice and without making political points. I should certainly never accuse the Government of neglecting Cornwall. I know that they have created not merely a series of initiatives and structures, but that they genuinely wish to see that those initiatives are well and truly supported.

I very much enjoyed the contribution of the noble Lord, Lord Saint Levan. He knows far more about Cornish people and places than I and many others here do. I say to the noble Lord with the deepest respect that a Member of this House listening to another Member speaking from the heart recognises that that is where his remarks come from. They do not come from a brief, a newspaper article, a cutting or a request from someone to make a point. When one hears someone who speaks from the heart one recognises that, and the contribution is all the greater.

The noble Lord convinced me by his references to tourism, farming and fishing—the three fields in which he modestly claimed to play a part in the county of Cornwall—that much is wrong. There is much for those affected to grieve about, not least economically. The case has been made that economic life is not the only life in Cornwall or any other place. There is history, pride and ambition. And from the remarks of my noble friend Lady Dean I see that there is a determination to try to get the Government to act a little more fairly and urgently.

The noble Viscount, Lord Waverley, convinced me that he is an enthusiast, that he cared and that he was concerned about the issue. The noble Viscount also appreciated the benefit of the debate in putting on record some of the proposals that he wanted. He was a fine advocate. He left me with one or two points with which I shall now deal.

The problem that the Labour Party sees in relation to the Government's initiatives is that they lack democracy. They lack a contribution or input from the people themselves. Over the past 17 years the Government have been very good at trying to put right things that need to be put right. I served on a London local authority for many years. I was involved with the Local Government, Planning and Land Act 1980, the legislation out of which stemmed the urban development corporations. In retrospect, it rode roughshod over the democratic shambles at that time and succeeded in creating an economic instrument which, with hindsight 16 years later, has been for the good.

We also know that the Government have introduced a tier of regional government, including 10 powerful government offices in the regions. They are headed by regional directors. Incidentally, the CBI calls those directors "prefects". They co-ordinate the work of four major government departments: the Department of Trade and Industry; the Department of the Environment; the Department of Transport; and that part of the Department for Education and Employment that was formerly under the Department of Employment.

However, as in many respects, the Government may be getting a job done, but they are not getting the job done. They are spending £60 billion of public money through quangos, and it may be money well spent but it has not been well spent to the extent that there has been little contribution from local councils, public bodies and so on.

What the Labour Party wants to see in the future is a great deal more than that. Labour will strengthen the role of development agencies in Scotland and Wales and establish a network of regional development agencies in each English region, building on existing initiatives. It will empower them to work with venture capital funds to provide small business finance through public/private partnerships.

I am delighted that the noble Baroness, Lady Miller, is here, because she entertained us earlier today on the subject of late payments. That is one of the problems that bedevils small businesses, as she well knows. I picked up the statistic that 90 per cent. of the businesses in Cornwall employ 24 or fewer employees. That is extraordinary. So small business needs encouragement. It will not get much from the statement made by Michael Heseltine, who admitted that he was quite skilful in stringing creditors along. We need to stop that attitude and encourage governments—even though government departments are guilty of paying 5 per cent. of their bills late or very late.

What the Government can do for the people of Cornwall, in my view, is to consider carefully the case made by my noble friend Lady Dean, particularly on the initiatives raised. The noble Viscount, Lord Waverley, mentioned the minimum wage and its effect on people and the economy. He is right, of course. That is why, when the Labour Party introduces the minimum wage, it will be sensitive. There will not be one day when it is not there and one day when it is; there will be consultation. One needs to take differing circumstances in different parts of the country into account.

The noble Viscount quite rightly raised the point that an attempt to deal with inequity in Westminster may rebound on the people of Cornwall. Of course one will need to take that into account. One needs to be fair to the people of Cornwall when trying to deal with another problem. I should certainly ensure that that is the case.

On the question of the business rate coming under local control, all such matters are policies which will be put into practice, but not willy-nilly. It cannot be the object of any government's policy to destroy something which exists. I say to the Minister that it would not be the job of an incoming Labour Government simply to look at what is in place and say: "Out, out, out". One must recognise that the present Government have a great deal to their credit in dealing with such matters.

We in the Labour Party are delighted that a small place like Cornwall has so many advocates in this House. The people of Cornwall will want to hear not necessarily that there are immediate solutions at hand to their problems, but that there are people who might be able to influence decisions. Members of your Lordships' House have heard powerful advocates for the people of Cornwall this afternoon. I believe that the people of Cornwall can rest content after today that the case made will not be lost. I look forward very much to hearing what the Minister has to say which will be of encouragement not least to the people of Cornwall but also in other areas like Cornwall throughout the country.

We are a rich country in comparison with many others, but we need to recognise, even inside a rich country like Britain, that there are pockets of discontent, places which have not been dealt with fairly. I hope that the Minister will congratulate all speakers this afternoon and also give us some hope. Let us pray.

3.45 p.m.

Baroness Miller of Hendon

My Lords, I congratulate the noble Baroness, Lady Dean, on initiating this short debate and on the interest that she has shown in the future prosperity of the County of Cornwall. She said at the start that she wanted to put Cornwall on the map. She has undoubtedly done that with her usual clearness, conciseness and, if I may say so, charm. I am sure that the whole House is pleased that her voice lasted until the end and that the noble Lord, Lord Berkeley, did not have to stand in for her. I should also like to say that I believe that the excellence of the first speech tempted and prompted all the excellent speeches that we heard. I particularly join with the noble Lord, Lord Graham, in saying what a pleasure it was to listen to my noble friend Lord Saint Levan, whom I have not had the pleasure of hearing before. He spoke with long knowledge of the county and its history.

I took note of the fact that the noble Lord, Lord Graham, did not wish to be political. Certainly, I have no intention of being political either. But it may help noble Lords if I briefly set the context for the Government's response.

We have done well on the economy. Underlying inflation has been below 4 per cent. for over four years, which is the best performance for almost 50 years. Underlying manufacturers' output price inflation is at the lowest level for almost 30 years. GDP has now risen for almost five years and is 13 per cent. above the trough in the first quarter of 1992. The OECD forecast that the UK would be the fastest growing major EU economy in 1996, 1997 and 1998. Since 1980, manufacturing productivity has grown faster than in any other G7 country. The United Kingdom tax burden on business is the lowest of the major European economies. Investment in plant and machinery is up by three fifths and business investment is up by a half since 1979. Unemployment is falling steadily and there are more people in jobs.

The south west economy has also been doing well. The latest Plymouth Business School report, for example, sees recovery in the south west to be well established. Overall, in 1996, the indicators show growth similar to the economic upturn in 1986–87. There has been good news in Cornwall, too. Within the general picture, many outstanding individual companies are doing well. United States companies Harman International and Continental Sprayers are creating 185 valuable new jobs in Redruth. Redruth Brewery has won the brewing and distribution licence for the first Chinese beer to be produced outside China, with Hong Kong among its customers. Cornwall's In Pursuit of Excellence initiative is an excellent example of how the county can be promoted as a place for business to succeed. The Tate of the West in St. Ives is drawing visitors from far and wide, bringing more money into the local economy. Last summer was the best ever for tourism in the West Country with spending up by £200 million and more overseas visitors.

I am aware of the perception that the West Country generally gets a raw deal compared with Wales and other areas. I believe that one will always get groups in every county which feel that they are hard done by and could produce statistics to show the difference. But Cornwall and Devon do not, of course, tend to have the very large sites for major developments which major inward investors seek, and which tend to be associated with large sums of regional selective assistance which receive media attention. Nevertheless, the regional development organisation, Devon and Cornwall Development International, has had its best year yet, securing inward investment of over £73 million. Perhaps I should just mention that it is appropriate to look at the scale of the problems. In assisted areas of Wales, for example, there are more than three and a half times as many unemployed people as in the whole of Cornwall: 72,500 compared with 19,500. The Government obviously have to look at the total picture.

We know that there is special concern about the level of unemployment in Cornwall and we share it. Unemployment in the county remains too high. It is a sadness for those who are unemployed themselves and for their families. But we have already achieved a great deal. The unemployment rate fell from a peak of 15.5 per cent. in January 1986 to 14.5 per cent. in December 1992 and is currently 9.2 per cent. There is clearly much more work to be done. But we believe that we have the right policies and programmes in place to tackle the problems, in partnership with local people.

These problems do not go unrecognised by government programmes. It is in the areas of most need that our programmes are most concentrated. Much of Cornwall has been granted assisted area status in recognition of these problems. In the past 10 years, over £75 million of regional selective assistance has secured investment of nearly £500 million in businesses and over 17,000 jobs in the assisted areas of the region, mainly in Cornwall and Devon. Nearly £5 million of RSA has already been offered in 1996–97 to companies in Cornwall alone, generating over £31.5 million investment and 600 new and safeguarded jobs. Cornwall has won £11.5 million of grant support in the first three bidding rounds of our single regeneration budget challenge fund, which is expected to create over 6,700 jobs and 800 new businesses. English Partnerships is to provide advance industrial units that inward investors need through a special £5 million programme in the West Country. Penzance, Redruth, Indian Queens and St. Austell in Cornwall will benefit. Cornwall, with parts of Devon and west Somerset, benefits from by far the largest European Objective 5b rural development programme in England with £170 million available—599 projects have been approved so far, totalling £56.4 million grant. These include the £8 million private sector-led Bodmin Business Park which will create 60 new business units and 477 new jobs. Cornwall and Devon have £8.9 million—nearly half the total for England—under the European Leader II programme to help develop rural communities, of which £1.8 million project grant has already been approved. And there are many more examples. This adds up to very substantial support.

The Government have demonstrated their support for Cornwall in other ways. The noble Baroness asked whether there is a commitment from the Government. The answer to that is absolutely so. There has been, among other things, the appointment of the only Minister in England, my right honourable friend David Curry, given special responsibility for this area. I am grateful to my noble friend Lord Saint Levan for welcoming that move. This appointment has been widely welcomed locally and so too have the many things which he has achieved in just a few months, in partnership with local organisations, led by the West Country Development Corporation. I say to the noble Lord, Lord Graham, that they do consult and that it is in partnership with local organisations. It is this kind of partnership approach which is needed and which has been successful.

The noble Baroness, Lady Dean, and other speakers mentioned the job losses at St. Ivel and English China Clay. We are saddened that that has happened. The Government are helping with a response to this and will continue to do so. The noble Viscount, Lord Falkland, asked me to give him an answer. I do have one. However, many other noble Lords have asked questions and so I think I should move on; otherwise I shall not be able to meet all the points.

The Minister for the South West met a local delegation and gave a positive response to four immediate priorities for action, which are already in hand, and has promised further support where needed.

The noble Baroness, Lady Dean, referred to the importance of good infrastructure to the Cornish economy. The Government agree. Communications have been improved greatly over the years and work on key strategic routes continue. Many noble Lords mentioned the A.30, the main strategic route through Cornwall which provides faster and direct access to the M.5. following substantial government investment over many years. Preparatory work on the key section in Cornwall between Bodmin and Indian Queens will resume later this year, demonstrating that the Government listen to what local people say. A possible application by Railtrack for European regional development funds towards diversion of the Newquay rail line where it crosses the section of the A.30 at Goss Moor Bridge is being discussed. The noble Baroness asked when work will start. It will start shortly.

Many noble Lords asked about the same problem. As part of the total improvement scheme for the A.30 Bodmin-Indian Queens section, Railtrack is also looking at possible applications for European regional development funds to help divert the bridge. The noble Viscount, Lord Waverley, was particularly concerned about that.

Rail links to London and other major cities are good and Railtrack is commissioning a feasibility study for investment options for improving the Great Western route to Penzance, Plymouth and Newquay and provide direct air links to international routes in London. These are crucial to business. I know that the decision of Brymon Airways to switch flights to Gatwick has not met with universal approval. But that has removed uncertainty about the future. It will enable the development of services, which was not possible due to the congestion at Heathrow. I say to the noble Viscount, Lord Falkland, that the link was not closed. It was simply switched to Gatwick, which to many people would be considered more acceptable for central London and might be more helpful for businessmen, visitors and tourists.

The Viscount of Falkland

My Lords, surely the importance of the Heathrow link is not for tourism, but to enable businessmen to fly to other parts of the world, which they cannot do from Gatwick.

Baroness O'Cathain

My Lords, perhaps I may intervene for one moment. The fact is that 100 destinations are now served from Gatwick, which has grown at a huge rate. There is an enormous number of services to American destinations from Gatwick. The Gatwick link will probably benefit Cornwall more than if the airline had stayed at Heathrow.

Baroness Miller of Hendon

My Lords, I am grateful to my noble friend for her intervention, but it is important that I move on.

The noble Baroness, Lady Dean, has argued forcefully about how millennium funding can help the regeneration of our cities, towns and villages. The Government agree. Although regeneration is not one of the primary purposes of the Millennium Commission, Cornwall will benefit substantially from millennium and lottery funding. Up to £2.7 million of millennium funding will support parish-based community initiatives ranging from village halls to playing fields. Over £15 million of lottery money will support nearly 120 projects in Cornwall, providing new and better facilities for local communities. There is also a major application, which the Millennium Commission is considering, for the Eden project near St. Austell, which many noble Lords have asked about today. It has huge potential for the creation of jobs and the attraction of more visitors to Cornwall. I am pleased to tell the noble Baroness that this application has now been long-listed for more detailed appraisal. Indeed, I believe that my noble friend Lord Saint Levan will be pleased about that.

The noble Baroness, Lady Dean, also asked about the Falmouth project. Applications have been submitted by the Falmouth International Maritime Initiative for National Lottery funding, but that is a matter for the National Lottery to consider.

The noble Baroness argued specifically in support of the benefits that a university campus for Cornwall can bring to the economy of Cornwall and has asked if Government will give their own support to the bid for millennium funding for this project proposed by the University of Exeter. It is, of course, for the Millennium Commission to decide on the application for funding and Government cannot interfere in that process.

I can say, however, that the University for Cornwall project is an example of what we are seeking to encourage in terms of local initiatives financed to a significant extent through sources other than public funds.

The Government recognise that higher education is a major contributor to local regional and national economic growth and regeneration, and the prestige that a university can bring. That is why we have asked the National Committee of Inquiry into Higher Education, led by Sir Ron Dearing, to take this into account when making its recommendations later this year, alongside the principles of Government policy to encourage diversity and responsiveness to national and local needs for higher education. I believe that the noble Baroness, Lady Dean, sits on that committee.

Government also encourage enterprise in our universities, and the level of public funds for an individual university is determined irrespective of the level of private income which it is able to generate. Because of public funding constraints, we are currently controlling the aggregate number of full-time undergraduate students in higher education. The Higher Education Funding Council for England distributes public funds to universities within this limit.

The noble Baroness asked specifically whether the Government would support the case for European Objective 1 status for Cornwall. The Government will always seek to achieve the best results for Cornwall, as for the rest of the United Kingdom. Cornwall is currently linked with Devon as a European statistical region. The proposals for revision of the UK regions for European purposes, as set out by the Office for National Statistics, have been out for consultation. It is suggested that Cornwall should be a separate level 2 region. The Government are considering those proposals, which will need to be put before the Commission's Eurostat Agency for approval.

I am aware that my 15 minutes are up and that I have not quite managed to answer all of the points that have been raised. I shall read Hansard carefully and, if necessary, will write to noble Lords on any points that I have not covered. I hope that the noble Baroness and all noble Lords who have spoken will feel that, although one can never be totally satisfied with the performance of any part of the economy—things could always be better—the fact is that the Government have recognised the problems and have done their best to make them better. Indeed, the position is steadily improving.

Cornwall is a unique county with its own history, about which the noble Viscount, Lord Falkland, has told us so much. Cornwall has its own culture and language. Indeed, the noble Viscount also told us about Cornish pasties. Cornwall is a very special place. Moreover, it is one of the most beautiful parts of England. It deserves to prosper. We wish it—I wish it—well.

House adjourned at one minute past four o'clock.