The government has admitted that some rural areas in Wales are among the most deprived in Britain.

Parts of the Lleyn Peninsular in north Wales, and some coastal towns in the west, rank with the poorest inner-city areas, according to a Cabinet Office report.

But Prime Minister Tony Blair has denied that the countryside as a whole is in crisis.

The Cabinet Office report recognises that in contrast to rural England, agriculture is still a major employer in much of rural Wales - providing 9% of all jobs.

But unlike in England many of those jobs are poorly paid and part-time.

Welsh Farmers say their incomes have plummeted by 60% since 1995.

"The viable agricultural industry has spin-off benefits for the wider rural economy," said Mary James of the National Farmers' Union.

"Obviously it determines the spending power of farmers within that economy.

"If farmers have no money then the local shops, pubs, everything slides down with it and that certainly is what we've seen over the last couple of years."

But Tony Blair claims that in many other ways, those living in rural areas are better-off than their urban neighbours.

In its heyday the mining industry in Wales supported 2,000 pits - now it is consigned to history and become a museum piece.

The Cabinet Office report reveals that it is areas like this - not rural areas - where unemployment and crime are higher, and health poorer.

Mining was the last industry in crisis.

Former miners say their problems were more acute than the current rural ones - yet no-one helped them.

'Huge problems'

First Secretary Alun Michael admits both urban and rural communities in Wales are poorer than the UK average.

But he acknowledges that Welsh agriculture has huge problems.

"The countryside in Wales has massive difficulties because farming is in difficulties over recent years.

"The way to tackle that is to understand the problems and understand what can make the industry profitable and vibrant for the future."