By Chris Rogers BBC South West Political Editor

Staff are to be congratulated in helping the trust reduce debts

The local trusts inherited millions of pounds of debt run up by the old health authorities they replaced.

Ministers refused to write off the debts and said the health authority and the trusts must work out ways of paying the money back.

The MPs fear that frontline services will be cut, pointing out that two rehabilitation centres in Saltash and Liskeard have already closed.

Labour ... are taking away the extra money we need by insisting the deficits are paid off and this just makes the problem worse Richard Younger-Ross MP

Truro and St Austell MP Matthew Taylor said: "The local trusts in Cornwall have worked hard to find imaginative solutions to this problem without cutting frontline services, but it's looking increasingly likely they may have no alternative."

Teignbridge MP Richard Younger-Ross said: "Labour admit the NHS was under-funded, yet, instead of addressing the issue, they are taking away the extra money we need by insisting the deficits are paid off and this just makes the problem worse."

Meanwhile, Torbay MP Adrian Sanders said the rising deficits proved the funding system was inadequate.

He said: "At our meeting we're going to try to find a solution to the immediate crisis and argue for a fair funding system for rural areas in future."

Health officials in Cornwall say efforts being made to improve services and repay debts are proving successful.

The whole of the NHS in Cornwall is facing a �31m deficit, which is being blamed on the shake-up of the way health care is delivered.

However, the Cornwall Partnership NHS Trust is also warning that at times its services are being overstretched.

At a public board meeting held on Tuesday, managers of the trust, which cares for people with mental health problems, congratulated staff for their role in the trust's recovery plan.

Developments monitored

The �31m debts were passed on to the county's new health trusts when they took over from the old health authority.

The trusts are now attempting to find the money while trying to maintain services.

As well as tackling a funding crisis, the trusts have to modernise the services they provide.

The Cornwall Partnership NHS Trust says its shake-up has been achieved without employing more staff and, in some cases, with reduced staff numbers.

But it claims that although savings are being made, it is at times overstretched.

At the Tuesday meeting, managers said the modernisation and recovery plans have put increased pressure on staff and in the future could affect morale.

They recommend that the impact of the developments on services are closely monitored.