Proposals to set up an association to manage government housing stock is being ignored by the Infrastructure Minister.

The Department of Infrastructure (DoI) commissioned a report to look into a housing strategy with a need to provide more housing a priority as part of the Our Island Plan.

The report by UK-based consultants Altair Ltd, which cost £79,290, has now been published and was put before Tynwald this week by Minister Dr Michelle Haywood.

However, rather than backing the recommendations within the report, Dr Haywood raised concerns over the cost and increase in staff by creating a new housing entity.

In presenting the report, which was not up for debate, she told members the report was of ‘great assistance’ but said: ‘This report details that considerable resources would have to be focused on setting up any new entity.

‘These include seconding DoI staff to the new entity for up to three years, conveyancing all the DoI public sector housing over to the new company and recruiting and paying a board of directors.

‘The Altair report estimates that it would take at least three years before the housing association was in a place to run in its own right and could start to commission more homes.

‘Furthermore, the report did not address issues of where the housing association would have its offices and the cost of that accommodation.

‘At a time when we are being challenged on government head count, the Altair report if implemented would have created more officers within DoI and a new board of directors.’

Currently, all social housing in the island is either managed by the Department of Infrastructure or by local authorities.

The new body proposed in the Altair report would have been a standalone entity, operating independently with its own board.

Any such entity would take over management and ownership of 1,260 properties, oversee housing development and provide homelessness support services.

However, Dr Haywood has not ruled out introducing a housing association in the future.

She said: ‘I believe there remains potential for the establishment of a Housing Association but in this report only one model of delivering that was explored. It did not properly evaluate all the costs associated with establishing a new body.

‘Secondly, the department has been very focussed on this project but that has taken our focus away from the actual delivery of affordable homes.’

A number of representatives from the island’s local authorities were interviewed as part of the three-month consultation process for the report, including representatives from Braddan, Douglas and Ramsey Commissioners who raised concerns.

Dr Haywood has decided she will introduce some restructuring but not set up an entirely new entity.

She explained: ‘I am intending to establish a Housing Agency within the DoI. I see this is a vital interim step towards any future housing association.

‘The agency will be directed by a board with a political chair accompanied by voluntary non-executive directors to provide the skills and advice.

‘As the agency is in effect an internal reorganisation within DoI, no additional burden will be placed on taxpayers beyond what is already earmarked for housing.

‘Instead, the Housing Agency Board will ensure that housing funds are managed more efficiently, transparently, and effectively.’

Dr Haywood ended by saying the agency could be bumped up to a housing association in the future but at the moment she said: ‘I would rather get on with trying to deliver housing’.