There are fears that a major upgrade for ferry links with the Scilly Isles could be in jeopardy after rejection of plans for a ferry terminal in Penzance, the first stage of a multi-million pound scheme also including building of a new vessel.

In refusing building consent, Cornwall Council supported claims by a local campaign group that the projected construction would ruin the town's seafront.

The Scilly Isles Route Partnership insist the seafront would be safeguarded and worry that overall funding could be lost as alternative plans emerge for a switch of mainland base for services to Falmouth.

The on-shore squabbles are also diverting attention from plans for a single ferry with side-loading drive-on/off vehicle facilities to take over from 33 year-old passenger/cargo vessel Scillonian III and winter cargo ship Gry Maritha.Russell Plummer