John Healey reaffirms Government's commitment to economic growth in Cornwall

The Government is committed to working with agencies in Cornwall to continue to support Cornish economic Growth, the Economic Secretary to the Treasury – John Healey MP –reaffirmed today on a visit to Cornwall.

As part of the Government’s commitment to reduce the disparities in growth rates between the poorest and wealthiest regions, the Government has been working with partners in Cornwall and the wider South West to help the Cornish economy overcome barriers to growth and build on the area’s indigenous strengths.

In 1999 the Government and local partners successfully argued that Cornwall should be identified separately for EU Structural Funding. The Government also established the South West Regional Development Agency, with a budget of £153m in 2005-06, to act as a strategic driver of economic growth in the South West.

Key projects such as the Combined Universities of Cornwall, for which additional Government funding of £21m was announced last week, along with the Peninsula Medical School, and the Eden Project have raised Cornwall’s profile and provided a new sense of economic direction. Estimates suggest that the Eden Project alone has created 3,800 jobs and contributed an additional £138.6m to the local economy.

The Government is committed to EU reform to ensure a fair budgetary deal for the UK, and in turn would increase domestic funding taking account of the economic development needs of areas with high unemployment and low economic output such as Cornwall.

The Economic Secretary and local MP Candy Atherton have today visited businesses and agencies driving economic renewal and regeneration in Cornwall including the Urban Regeneration Company in Camborne and Objective One projects in Tolvaddon.
John Healey said:

“Cornwall faces distinctive barriers to economic growth. Together we are committed to building on the region’s unique strengths - its people, its history and environment – to secure lasting economic development.

“I have met a number of times over the last few months with partners from Cornwall, and we have discussed how the Government’s commitment to devolved decision making and partnership working can allow Cornwall to use new flexibilities to support economic growth. Particularly in the areas of employment, skills, enterprise, housing and transport, and the need to integrate decisions across these areas, I believe we have put in place changes that will help Cornwall grow.

“Whatever the funding arrangements in the future, the Government and stakeholders in Cornwall – including Cornwall County Council, the Objective One Partnership and South West Regional Development Agency – have a common agenda for doing what is best for Cornwall.

“I welcome the partnership working that has delivered a clear long term economic vision for the Cornish economy as part of a thriving South West economy, and am confident that a strong continuing dialogue between partners in Cornwall and policy makers in Government will enable that locally-led vision to produce prosperity for all in Cornwall beyond 2006.”

Notes for editors

1. John Healey is visiting Camborne and Tolvaddon on Thursday 31 March 2005.

2. Mr Healey is visiting staff at the Camborne, Pool and Redruth Urban Regeneration Company as well as businesses at the Tolvaddon Business Park.

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