DoLGE Minister John Shimmin says his department is disappointed the proposed Crossag Farm development in Ballasalla was refused planning permission.
But he says they remain committed to developing new homes for rental and first time buyers.
Speaking in Keys earlier, Mr Shimmin was answering Onchan MHK Peter Karran's question about what steps were being taken to press forward other housing projects.
Mr Shimmin told the House the department's targets remain the same, despite this setback:
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