Ampersand has started some work in the bay

About 500 holiday homes, a hotel, bars, shops and restaurants, are planned for Carlyon Bay, near St Austell, by development company Ampersand.

Work has begun on the development using permission granted in 1991 while the Government Office for the South West considers the scheme.

Opponents say work must be halted until final planning permission is given.

Beach restricted

More than 100 people took part in the Sunday protest, saying the plans for Carlyon Bay are too large and must be thrown out.

Mandy Pierce from protest group Art For Cornwall (A4C), which took part in the protest, said: "What we would like people to be aware of is how restricted they're going to be when this development is in place.

"We're not standing on a soap box, we just want people to be aware of how this is being done."

Ampersand's sales Director Sam Weller said the company was sticking to the rules governed by the existing planning permission.

Art For Cornwall is worried about what the scheme will do to the area

Government Office for the South West said a report on the site is on its way to the Deputy Prime Minister's office.

The office said: "The Secretary of State will then decide whether to call the application in for a public enquiry. But we cannot give a date for his decision."

But many local people are concerned that while they wait for a decision from John Prescott, Ampersand may forge ahead with works and gain retrospective planning consent.

However, the chairman of the Development Control Panel at Restormel Borough Council, Malcolm Brown, said the site is checked regularly.

He said: "We want to make sure they are not going beyond the scope of what they are allowed to do in accordance with the old planning permission.

"That advice I have so far is that all they are doing."