Cornwall's economy will be slow to turn round says Objective One

Critics insist the �330m of Brussels aid earmarked for the project could be better spent in its bid to improve the county's economy and create jobs.

They say there is little evidence of long term wealth being created.

But Objective One director Carleen Kelemen, said that the project, which started in 2000, had been "exceptionally successful".

Peter Gripaios, professor of applied economics at Plymouth University, said earlier this week that there were not enough strategic developments.

When you start from as far back as the Cornish economy has, it is going to take a long time to turn the structure round Carleen Kelemen

A financial backer has also suggested the scheme should have kept "a closer watch" on projects which later collapsed.

But Ms Kelemen said: "We have created 600 projects, invested �232m, we have provided 35,000 training opportunities and we forecast we will create another 10,000 jobs.

"We have also created the start of a more knowledge-based economy with the Combined University in Cornwall.

"But when you start from as far back as the Cornish economy has, it is going to take a long time to turn the structure round."

Her comments came as it was revealed that, according to new government figures, a third of Cornish households live in some of the most deprived areas in the UK.

Fastest growing

Ms Kelemen said: "We didn't get this programme because of absolute poverty. We got it because our Gross Domestic Product in Cornwall was low.

"But we are working hand in glove with organisations like Job Centre Plus in reaching those who are unemployed and investing in training and support schemes."

The government has confirmed that it plans to take over the distribution of European grants from next year.

It has prompted fears that Cornwall will not receive a second allocation of Objective One funds.

But Ms Kelemen said: "We have one of the most successful programmes of its type.

"Qualification for another round of Objective One funds depends on our average GDP between 2001 and 2003 and even though we now have the fastest growing economy in the South West, our GDP was so low when we started that the European Commission is confident we will qualify for Objective One funds again.

"We do not want to stop at the end of this six year programme."