Any possible future development of the Crossag Farm site in Ballasalla would be far more costly.

That's according to former director of estates and housing, Richard Senior.

He was giving evidence at the resumed Tynwald Select Committee inquiry into failed plans for a ?40 million development. Plans were turned down by an independent planning inspector because of a shortage of infrastructure.

The select committee was formed after it was discovered Government subsequently agreed to buy back the land from the developer.

A lot of the questioning at the sitting centred around why members of Tynwald were unaware that the contract with builders JG Kelly Limited actually involved three companies, JG Kelly, Jackson Homes Southern Ltd and Jackson Holdings.

The inquiry heard JG Kelly was just the building arm and had no rights on the land. This was owned by Jackson Homes Southern Ltd with Jackson Holdings being the overall holding company.

The beneficial owner of all three is a Family Trust which may not be held on the Island.

Whilst it was clear there had been a degree of confusion over land rights, it seemed clear in retrospect that more checks should have been carried out.

Mr Senior said he believed the scheme had been a good one for government and the Island, whilst admitting it was the most complex deal he had ever been involved in.

He said having three companies involved, including the holding company, strengthened the agreement. He didn't believe there was high density housing and thought the decision by the independent planning inspector to turn down the plans was a poor one.

Any future phased schemes for development there, he said, would now be far more costly.