Talks over the possible sale of the former Castletown police station are under way, Treasury Minister Alfred Cannan has confirmed.

The sale of the historic building was put on hold earlier this year following a public outcry that it could be lost.

Treasury has offered Manx National Heritage an interest-free loan to buy the building, which has a market value of £250,000.

Mr Cannan told Tynwald: ’Negotiations have begun and are ongoing.’

He pledged to review the procedures for the sale of government-owned buildings. Last year there was a row after the government put Ramsey Courthouse up for sale. Ramsey Commissioners later reached a deal to buy it.

The issue was raised by Jason Moorhouse (Arbory, Castletown and Malew), who asked what Treasury’s involvement was in sale processes for government buildings.

Mr Cannan said it was up to departments to decide whether a property should go up for sale, but Treasury concurrence was required.

’In normal circumstances, Treasury is required to provide valuation advice and will also provide advice where there may be wider considerations to a disposal, wherever possible,’ he said. When a property was of national importance ’most government bodies and related statutory bodies will be consulted’.