Economy of Cornwall - Objective One Funding in Cornwall

Objective One Funding in Cornwall

Cornwall qualified for Objective One European funding in 1999. Prior to this the Government had, for statistical purposes, incorporated it with Devon, under the Devonwall concept. In 1998 Cornwall was recognized by the UK Government as having "distinct cultural and historical factors reflecting a Celtic background", thus allowing it to be separated in a regional and economic sense from Devon.

Due to Cornwall producing less than 75% of the average European GDP, £350 million of Objective One funding was received between 2000 and 2006. The Combined Universities Campus at Tremough was one result of this funding. Objective One funding has been used in supporting and developing a largely indigenous food and farming industry which is now worth nearly two billion pounds a year. Other sectors have also benefited, including the 'creative industries', which have benefited from publicity and investment. Tourism also gained from the funding, and broadband provision was made a priority. There have been some complaints of fund mismanagement, for example, cases such as the £2 million funding towards the failed South West Film Studios at St Agnes.

In 2005, Cornwall was estimated to have a GDP of 70% of the European average and Cornwall qualified once again for Objective One. This 'tranche' was known as Convergence funding, and was due to last between the beginning of 2008 and 2013, and be worth £445 million. Priorities for the 2008-13 tranche have an emphasis on information and communication technologies, competitiveness, enterprise and a providing a skilled workforce.

One of the first projects, a £3.5 million factory was built by the South West Regional Development Agency (SWRDA) at St Columb Major with £1.7 million of Objective One funding in January 2002. It was occupied by the American-owned book, video and CD distribution company Borders Books, creating 90 jobs, and became the company's national distribution centre. In March 2008 it was announced that the depot was to close.

The Gaia Energy Centre at Delabole, opened in 2001 as a tourist attraction (on the site of Britain's first commercial windfarm). It cost £5m and was expected to attract 150,000 visitors a year. It closed after three years, having only welcomed one tenth of the expected visitor numbers. The majority of the funding for the centre came from Europe, with £300,000 grants from Objective One and SWDRA, the South West Regional Development Agency.