The pharmacy scheme has freed up doctors' time

The county's health community was intending to borrowing the money to lessen the impact of a �31m debt and pay it back by 2009.

However, a district duditor who looked into the deal discovered rules governing primary care trusts prevented the arrangement from going ahead.

Primary care trusts said they have made some savings to help reduce the debt but that more government investment is still needed.

We have to face the facts that Cornwall is probably under-funded Peter Davies, Central Cornwall Primary Care Trust

Primary care trusts, the Royal Cornwall Hospital at Treliske, the South West Health Authority and the Cornwall Partnership Trust are all affected by the �31m deficit.

One scheme helping save money at the Central Cornwall Primary Care Trust is where patients are prescribed medication for minor ailments by a pharmacist without seeing a doctor.

A trial scheme at one pharmacy saved 65 doctors appointments and now its being taken up across the trust's area.

Pharmacist Paul Hughes said: "This means people can come here with a minor ailment and we can give what the doctor would probably recommended anyway.

"It does free up their time to see more important cases."

Some health clinics have reduced services

In another move, doctors are prescribing more cost-effective generic drugs instead of named brands.

Central Cornwall Primary Care Trust Chairman Peter Davies said: "What we have done already shows we can achieve savings the within the large budget outlined whilst having a minimal impact on services.

"But we have to face the facts that Cornwall is probably under-funded, and I think from this we will need to take a delegation to the minister to try and get a better deal for the county."

The Central Cornwall Primary Care Trust says it has had to bring in service changes, some of which have led to beds being closed and a number of clinics reduced.