The historic horse tram stables at Tramway Terrace have been saved as a heritage attraction.

They have been bought by the Department of Infrastructure from Douglas Council for £600,000.

A planning application to construct temporary horse tram facilities on the Summerland site was approved last year.

But the DoI said after reviewing a number of options it considered buying the existing building will prove more cost effective, as well as helping to retain part of the island’s heritage.

Member for public transport Jason Moorhouse MHK said: ’The stables will continue to be used for its intended purpose, while investment will also be made to secure the fabric of the property and improve welfare facilities.

’With the promenade redevelopment project set to begin later this year and the recent application to rebuild Strathallan depot, this is an exciting time for the horse trams.’

Infrastructure Minister Ray Harmer said the Summerland site remains on the market and a number of potential bids are being evaluated. Meanwhile, the DoI has confirmed losses made by the horse trams were just over £200,000 last season.

Public transport bosses have moved to clarify their response to a Freedom of Information request, which suggested the loss was closer to half a million pounds. But the figure they gave for operating costs included capital expenditure.

Now they have confirmed that running costs, not including capital expenditure, came to £349,315 last season.

Revenue generated was £142,703, leaves an operating loss of £206,612.