Te objectives of the Manx Development Corporation (MDC) are “to be reviewed” following criticism in Tynwald over its failure to comply with key parts of its shareholder agreement.
The scrutiny arose after Ramsey MHK Lawrie Hooper questioned why Clause 8.7—covering dividend policies—had not been followed.
Treasury Minister Dr Alex Allinson acknowledged that early delays, including land transfers, had made a dividend policy “counterproductive” while MDC was not generating income.
However, with the completion of the former nurses’ home on Westmoreland Road and apartments now being rented, he stated it was “an appropriate time to review the company’s objectives”.
Impossible
Hooper pressed further, asking why the agreement had not been varied if compliance was impossible. “Why is it that it’s not being adhered to?” he said.
“The Minister mentioned a variation in 2023—they must have known they didn’t have a dividend policy in place. Why didn’t they vary the agreement?”
The Treasury Minister confirmed other lapses, including the absence of a three-year strategy plan (Section 11.1) and an annual work programme (Section 11.2), blaming delays like the Park Road site being repurposed for a school.
“Because of well-publicised delays, that annual work programme has become quite disjointed,” he said.
Criticism
Douglas Central MHK Chris Thomas also criticised the lack of public explanations for delays, such as the Westmoreland Village project, which was held up by planning revisions.
Mr Hooper raised concerns about governance, asking if the Treasury’s oversight had eroded trust. Dr. Allinson rejected the claim, stating, “I don’t think any parts of the shareholders agreement have been ignored”.
Mr Thomas later questioned whether MDC was being transformed into a housing association, citing planning committee reports.
Dr. Allinson dismissed this as a “rumour,” emphasising MDC’s role in brownfield regeneration.
Julie Edge, MHK for Onchan, queried director salaries and “extortionate rents,” citing a £1,950 apartment.
Dr Allinson clarified that dividends are paid only to the Treasury, not directors, and defended rental rates as “market-driven,” with one-bedroom units starting at £795.
The debate highlights ongoing tensions over MDC’s governance and its role in addressing the Isle of Man’s housing crisis.
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