Forty years after she first visited West Cornwall as a child, Estelle Morris returned on Tuesday morning in her capacity as Arts Minister for a visit to the Newlyn Gallery.

And the minister, who was greeted by gallery director Liz Knowles, admitted to having first paid an early morning visit to Mousehole, where she originally holidayed with her family. "I couldn't resist a look at Mousehole again," she said. "I have such fond memories of my childhood holiday there. It was lovely to be back."

Ms Morris was following in the tradition of former arts ministers by visiting the gallery and viewing the art of local painters and sculptors.

She was introduced to Rose Barnecut, arts officer for Penwith Council and Charles Hancock, chairman of the council of management at Newlyn Art Gallery.

They showed her architect models of the proposed gallery extension and the development plans for the Old Telephone Exchange in Penzance. Both projects have recently received planning permission and Objective 1 funding.

Ms Morris was told that nearly £2 million had so far been secured, with £400,000 still to be found.

Liz Knowles told her: "We have just been informed that we have been awarded more Objective 1 funding than we at first thought and now have all the applications in place for the remainder."

Ms Morris said: "This is a very exciting project and an essential element in the regeneration proposals for Newlyn and Penzance and I wish you every success."

She added: "This is a lovely gallery, full of light, and the extension will give the building wonderful views across the bay."

The Minister was given a tour of the gallery, which is currently showing works by members of the Newlyn Society of Artists.

She particularly liked a still life by Romi Behrens; Phil Whitings' Flanders Field and an abstract work by Naomi Frears.

During the visit she met Esen Kaya, the gallery's education officer, who explained the gallery's work with schools and colleges.

Rose Barnecut explained Penwith Council's support of the arts in the district and how the proposed gallery projects would "extend the platform" for both Cornish and international artists.

The Minister enjoyed a cup of coffee with staff members before leaving the gallery for a visit to Falmouth's National Maritime Museum.

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