The natural advantages of diverse Cornish waters and the potential within Cornwall's long established fishing industry are being wasted due to Government neglect, unfair catch quotas, and the loss of local quota through trading, according to a report released today.

The document, A Fair Deal for Cornish Fishing', outlines the major obstacles holding back the local fishing community, including financial hardship, with around a third of fishermen facing high levels of debt in line with a national crisis, and 85% not receiving and not likely to receive anything other than the state pension when they retire. The number of self-employed workers in the sector is five times that of employed workers.

The research has been commissioned by Cornwall's MPs, and highlights the growing concern that Cornish young people are losing interest in pursuing fishing careers. Catch quotas for Cornish fishermen contained in the EU Common Fisheries Policies have declined since the 1990s, hitting local fishermen hard, and despite the good work of the Duchy Quota Fish Trading Company, quota trading has allowed millions of pounds worth of quota to be lost to the county.

Quota trading also benefits large investors disproportionately, threatening to squeeze small operators out of the market.

MP for Truro and St Austell Matthew Taylor said: "Despite it's problems, fishing in Cornwall has a lot to offer - for example close proximity to important fishing grounds, the use of diverse methods, and a highly adaptable fleet --- and the resilience of the industry is down to the hard-work and dedication of the local community, who have suffered decades of neglect under the Labour and Conservative Governments that have persistently failed to safeguard their interests.

"Unless Ministers reverse this habit, the full potential of the industry will never be reached. Declining catch quotas have left Cornish fisherman in a very difficult position, and the only way to turn this around is to give them a greater say over the management of local waters."

Increases in fuel prices are also taking their toll on the industry, as Stephen Gilbert, author of the report, found out this morning when he joined a local fisherman out at sea on the Spirit of Cornwall'. He set out at 6am to spend the morning getting a better idea of the central issues facing the local fishing community.

Mr Gilbert, who is the Liberal Democrat Parliamentary Candidate for the new St Austell & Newquay constituency, said: "My great grandfather fished the north Cornwall coast all his life so it was great for me to be out today experiencing for myself some of the challenges that face the modern fishing industry.

"This report makes it clear that, in spite of the problems, the Cornish fishing industry can continue to play a key role in Cornwall's future. Our coast offers rich fishing grounds with a high quality catch that can attract a premium in shops and restaurants.

"Ministers need to address the issues that are holding the industry back - poverty, threats to stock and a loss of local quota and a reluctance of younger people to consider a career in fishing."

A key recommendation of the report is the devolution of greater authority over Cornish waters to the local community through the replacement of Regional Advisory Councils with Regional Management Committees - with real management powers.