Treasury has offered an interest free loan for MNH to buy the former Castletown police station for the nation.

The move was announced by Home Affairs Minister Bill Malarkey in Tynwald this morning in reply to an urgent question tabled by Castletown MHK Jason Moorhouse.

Insisting the building could not simply be transferred to MNH, Mr Malarkey said his department was bound by financial regulations.

He said government has to achieve fair value when disposing of assets.

The Minister explained the only expression of interest had come MNH and Treasury had initially said the heritage body could buy it at the market vale of £250,000 less a 10% discount.

But MNH trustees decided there were more immediate requirements for charitable funds.

Mr Malarkey told Tynwald: 'Treasury have offered to provide an interest free loan to facilitate the purchase. No doubt this will be considered by trustees in due course.'

Garff MHK Daphne Caine has tabled an urgent motion calling for the old police station to be transferred to MNH free of charge to hold it in trust for the nation.

Tynwald voted unanimously to adjourn that debate for two months to allow talks to continue between Treasury and MNH.