Multi-million pound proposals for the regeneration of Newlyn hang in the balance this week, as "delicate" negotiations continue over the purchase of land in Newlyn Coombe to site a controversial seafood park.

Last week The Cornishman reported that a deal was about to be clinched between the South West Regional Development Agency and landowner Chris Perkins.

This was to be followed with a major presentation to Penwith Council next week and a report on the progress of the regeneration scheme, which includes the building of a new fish market, a seafood park and affordable housing, recreational and community facilities.

But a week on and negotiations are still taking place over the land in Newlyn Coombe, with officers at Penwith Council saying the outcome is pivotal to the whole regeneration scheme.

Charlotte Hill, the council's head of regeneration, leisure and tourism, said: "The building of a seafood park at Newlyn Coombe is the crux of the strategy that the Regional Development Agency is trying to achieve for the fishing industry and the wider community. The Agency is still working for a successful conclusion and we are hopeful that a decision will be reached within the next few days."

Penwith Council's chief executive Jim McKenna told The Cornishman that the presentation planned for a council meeting on January 18 would not go ahead due to "circumstances beyond the council's control.

"In spite of positive efforts to progress plans for Newlyn, the negotiations between all of the parties involved are very complicated and as a result have not yet been concluded to the point where the presentation to our council meeting could be of most value," he said. "The purpose of the presentation was to inform the meeting of the progress being made on a number of emerging projects arising from the Newlyn Regeneration Strategy prior to consideration of formal proposals later in the year."

Council chairman Irene Bailey said: "While this setback is frustrating, unfortunately there continue to be many issues to resolve which are not in the council's control but we remain hopeful that we will be informed of a positive outcome soon.

"The council remains committed to working in partnership with the Newlyn Fish Industry Forum, the South West Regional Development Agency and others to facilitate regeneration proposals for Newlyn."

Graham Booth, MEP for Cornwall, yesterday said he offered "unreserved support" for the proposal to build a seafood park at Newlyn Coombe.

"I have nothing but encouragement for the team who have put together this deal," he said.

"I have written a letter to the South West Regional Development Authority, informing them they have my unreserved support, and offering any help which I can deliver from the European Parliament.

"Developments on greenfield sites and the environmental issues they arouse must always be balanced against the needs of the local community. There is no contest on this issue; it is crucial that fishing remains as a viable industry in Newlyn. I have every hope that a deal can be struck by SWRDA and look forward to hearing the developments as they unfold."

Tony Williams, of the campaign group Save Newlyn Coombe, said that a petition of 670 signatures had been presented to the land owner and that the group would continue to fight any decision to build a seafood park on the land.

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