A TYNWALD select committee has been appointed to investigate the contractual agreement with developers of the proposed Crossag Farm housing scheme in Ballasalla.

In Tynwald this month, Graham Cregeen MHK (Malew and Santon) requested the committee be set up after the revelation that, if the scheme does not go ahead, the government would need to buy back the land from developers at cost plus the cost of any infrastructure works that had been carried out.

In January, proposals for the 257-home estate were thrown out when an independent inspector said the development was 'premature' and overintensive.

But builders J. G. Kelly and Jackson Homes (Southern) have submitted a petition of doleance to the High Court challenging a decision to refuse planning permission for the £40 million scheme.

David Callister MLC, Brenda Cannell MHK (Douglas East) and Mr Cregeen were elected to sit on the committee and will report their recommendations to the court as soon as possible.