Hawkins Garage wants to move out of the town to an industrial estate, and Penwith District Council says the land should be re-used for homes.

But some people in Hayle want to see it transformed into a public open space.

The Hayle Town Forum and Hayle Residents Association, which organised the march on Saturday, say housing is inappropriate for the site.

The council has offered to defer a decision on the site until local people can firm up an alternative plan.

'Ticks criteria'

But one Hayle councillor, Owen Philp, warned that the site was considered ideal by the district council.

He said: "It is in a residential area and it is a brownfield site which the government is encouraging us to maximise, so it ticks all the criteria for affordable housing."

The lack of affordable homes has become a major issue in Cornwall as soaring house prices have outstripped wages.

North Cornwall District Council has reduced the council tax discount for second home owners in an attempt to raise more money for affordable homes.

In neighbouring Devon, South Hams, Plymouth, North Devon, East Devon and Teignbridge have already decided to cut the discount and Torbay is considering the move in January.