Claire Wells and Devon Watson told the Local Democracy Reporting Service that the scheme was being utilised to finance government budgets
The Department of Infrastructure has responded to comments made by Douglas City Council, clarifying that any profits generated by the new housing association will be reinvested back into the system.
Councillor Devon Watson had criticised the plan, calling it a money-making venture and expressing concern that public sector housing tenants would become 'cash cows' for the government.
Minister Tim Crookall stated that local authorities have been briefed, and he is uncertain why some may have misunderstood the situation.
He also emphasised that any money generated will not be diverted into government funds:
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