A new ’pay to stay’ policy for public sector housing tenants, who no longer meet the eligibility criteria, will be applied next year.

Infrastructure Minister Ray Harmer came under fire in Tynwald this week for a lack of consultation with local authorities on the policy, but he insisted it will come into effect when the first of the five-year fixed-term tenancies come up for review next year.

He said: ’In the event, upon review, an existing tenant exceeds the financial threshold and therefore no longer meets the eligibility criteria for public sector housing then, subject to the particular circumstances of the tenant, the tenancy will be allowed to expire, and no new tenancy will be granted.

’However, in the event that the income of the tenant and their spouse or partner is above the prevailing eligibility criteria for access to public sector housing, but is below the maximum upper threshold, the tenancy can be renewed for a further five years on different terms at a higher rental level.’

He said the upper threshold was expected to be set at around £60,000 for a couple.

The minister added: ’We will now be talking to local authorities.

’The first tenancies come up in 2019, we believe it is a relatively small number that will be impacted. We will talk to all local authorities and we will be developing this policy.’

But Lawrie Hooper (LibVannin, Ramsey) and Rob Callister (Onchan) expressed concern at the apparent lack of consultation with local authorities until now.

They sought clarity on whether the policy was actually firmly in place. Mr Harmer said it was, having first being unveiled in 2013, and that the authorities would be consulted over its implementation.

’We will be talking to them over the next year, because this will start in 2019,’ he said.

Mr Callister said pay to stay was the wrong policy, as ’those who most need local authority housing should get those properties as quickly as possible’.

However, the minister rejected that view.

’I think it is the right policy,’ he said. ’We have to be brave, we have to be bold, we have to put things where housing is most needed. If we do not make difficult decisions here, where else are we not going to make difficult decisions?’

Earlier, Mr Harmer had confirmed the concept of shared housing lists was an all-island policy. The lists see local authorities over a wider region team up to give broader options to those waiting to find a home.

Port St Mary Commissioners and Onchan Commissioners are not participating in the schemes in their respective regions.

The minister said he was reluctant to enforce rules that insist local authorities comply with an all-island policy, as part of the arrangement for deficiency payments from central government.

He urged the two authorities to consult their applicants but added that imposing sanctions would only be a last resort as it could affect ’tenants rather than the authority’.