5th March 2007 Dear Mr Henshaw, Thank you for your letters of ...

for example, to catch-up with official paperwork and meetings which hehas not had a moment to address when undertaking engagements inLondon, round the Country and overseas.(vii)The Duchy is “extracting” the last ounce out of the Isles of ScillyThe first general point to make is that the Duchy of Cornwall receivesminimal financial return from the Isles of Scilly and contributes, in effect, alarge financial subsidy to support the islanders, The Duchy is, for example,currently investing over £2 million refurbishing the off-island quays on theIsles of Scilly for no direct financial return.The Duchy lets 153 residential properties on the Isles. Of these 85% (or130) are let at between 50% and 75% of open market values, whichrepresents considerable support to local people. In the last four years theDuchy has constructed seven new, locals only, dwellings and released landfor the provision of six Cornwall Rural Housing Association rental onlyproperties. In addition the Duchy is discussing with the Cornwall RuralHousing Association the provision of land to construct a further 12affordable homes.In comparison, two refurbishments are on course for Duchy visitor letswhich will give a total of four Duchy visitor lets. For the Isles as a whole25% of properties are holiday or second homes. Fewer than 3% of theDuchy’s properties are holiday homes, which of course provide the bestfinancial return.In other words it could not be further from the truth to say that the Duchy is“extracting the last ounce out of the Isles of Scilly”.(viii) The Duchy’s letting of the Little House to holiday-makers was “blatantprofiteering” and “immoral”Little House on Bryher was leased to tenants who lived in Middlesex andused the property as holiday accommodation for their own use. The leaseof Little House was due to expire on the 25 th March 2003. The Duchymade the tenants aware that as this property was holiday accommodationthey were not protected tenants and that the Duchy would not be granting anew tenancy. The Duchy suggested that they surrender the property, whichthey did three months before the expiry of the lease. The initial intentionhad been to re-let the property for full-time local use; however, followingits surrender an inspection of the property revealed it to be in extremelypoor condition with £300,000 needed for a total rebuild. The tenants’ returnof the Little House to the Duchy was agreed without any charge fordilapidations. These would have been likely to have run into tens ofthousands of pounds.In view of the very high cost of the repairs needed to the property it wasdecided to let it as a holiday let; however, this did not mean that there was