The Enterprise Minister has defended the decision to use public money to help subsidise the building of luxury flats in Port Erin.

House of Keys Speaker and Rushen MHK Juan Watterson asked the Minister Tim Johnston what economic benefits are expected from the government subsidy of luxury flats in Port Erin?

The details of the luxury flats development was not identified, but DfE confirmed earlier this month that four projects had benefited from the Island Infrastructure Scheme, including the former Ocean Castle Hotel site in Port Erin.

Mr Johnston defended the decision saying there was a wider benefit for the island. He said: ‘We offer grant support for developments relating to urban living and regeneration. It also promotes spend in the local economy.

‘Financial support is a vital component of brownfield site development and the Island Infrastructure Scheme can unlock the potential for these sites.’

Mr Johnston was asked why a recently released analysis of housing need in the island makes no reference to 'luxury' flats with many MHKs raising concerns over the lack of affordable homes.

But he said the department needs to support a wide range of developments and says issues around section 13 – legal agreements around issues such as provision of open space and affordable homes – are agreed between the developer and the planning authority.

He told Tynwald members: ‘We need all types of accommodation in the island, we need the full broad range of accommodation.

‘Absolutely, we need to see affordable housing built and there are parts of government working on that principle. That it not a job for the Department for Enterprise and the Island Infrastructure Scheme which is very specific in its reach.’