Castletown School Hill Estate Redevelopment & CTC Governance Issues

AuthorityTreasury
Date received2025-10-23
OutcomeUpheld - partial
Outcome date2026-02-04
Case ID5029837

Summary

The request sought information regarding delays in the Castletown School Hill redevelopment and governance issues within the Castletown Town Commissioners, specifically concerning Treasury involvement and appointment processes. The Treasury partially upheld the request, disclosing internal emails and ministerial decisions detailing cost overruns and project governance concerns, while redacting specific sections related to individual staff and internal deliberations.

Key Facts

  • Phase 1 of the School Hill project was overspent by approximately £2.5 million.
  • The petition for Phase 2 funding increased from an original 2021 estimate of £6.7 million to a requested £13 million.
  • £2,147,702 of the total cost was allocated to works not included in the original programme to reduce project duration by two years.
  • Concerns were raised regarding the absence of the Responsible Financial Officer (RFO) and Deputy RFO in the project ownership structure.
  • The Project Management Unit (PMU) played a crucial role in realigning the programme strategy and managing the two-stage tendering process.

Data Disclosed

  • £95,020
  • £1,522,702.00
  • £425,000.00
  • £200,000.00
  • £2,147,702
  • £13m
  • £6.7m
  • £2.5m
  • 2021
  • 2025-10-03
  • 2025-04-24
  • 2026-02-04
  • 2025-10-23
  • Section 51
  • Section 35(b)(i)
  • Section 25

Exemptions Cited

  • s.35(b)(i)
  • s.25

Original Request

Recent media reports and comments from Castletown Town Commissioners on their social media page have suggested that the delay in progressing the second phase of the School Hill (Castletown) Redevelopment lies with the Treasury viz: https://www.manxradio.com/news/isle-of-man-news/delays-to-castletown-school-hill-development-blamed-on-treasury/ I seek specific information regarding this issue and any information held by the Treasury relating to the governance, modus operandi and operating structure of the new Castletown Town Commissioners (CTC) Board given the appointment without advertisement of a 'Temporary Deputy Clerk' (who himself proposed one of the newly elected Board Members), and the appointment of other consultants and temporary staff with no apparent transparent processes (tender invitations, job advertisements and allied job descriptions etc) for the engagement of such. The information sought (that created since 24th April 2025) includes but is not limited to correspondence between the newly formed CTC and the Treasury relating to all aspects of the School Hill redevelopment, engagement with media outlets on this issue, internal Treasury information generated regarding the same (e-mails, meeting minute extracts etc), and such information (if any) generated re the governance, structure and modus operandi of CTC.

Data Tables (1)

Doc no. Exemption engaged Notes
1 None applied N/a
2 Section 25 Section 35 Some wording removed – out of scope
3 Section 25 Section 35 Some wording removed – out of scope One email removed – duplicate email
4 Section 25 Section 35 Some wording removed – out of scope Two emails removed – duplicate emails
5 Section 25 Section 35 Three emails removed – out of scope
6 Section 25 Section 35 Some wording removed – out of scope

Full Response Text

Extract from Ministerial Decision, dated 03 October 2025 in relation to phase 2 of School Hill/West Hill Avenue Document 1 Document 2 3 ‐ Associated professional fees:                                                                                   £95,020    These are not true overspends, but rather packages of work moved within the overall programme:    ‐ Phase 1C – Construction of Block 28 (Apartments):                                        £1,522,702.00  ‐ Demolition of existing houses for Phase 2:                                                          £425,000.00  ‐ Additional contingency:                                                                                              £200,000.00    Furthermore, £2,147,702 of the total cost was allocated to works that were not included in the original  programme. This allocation was meant to help reduce the overall project duration by two years (removal of  Phase 4)    PMU played a crucial role in realigning the programme strategy with the commissioners. Additionally, the  PM was deeply involved in the two‐stage tendering process for Phase Two.               All these changes and challenges have been managed by PMU, requiring significant time and effort to  support the client effectively.     2.                3.     

Out of scope s.35(b)(i) Out of scope Out of scope 5 From: Haywood, Michelle (MHK) Michelle.Haywood@gov.im   Sent: 03 October 2025 12:50  To: Bond, Matt    Subject: Fw: Urgent ‐ Castletown Commissioners ‐ Local Authority Petition, School Hill Phase 2  

Sent from Outlook for iOS From: Allinson, Alex Alex.Allinson2@gov.im  Sent: Friday, October 3, 2025 12:42:07 PM  To: De‐Yoxall, Sarah Sarah.De‐Yoxall@gov.im; Haywood, Michelle (MHK) Michelle.Haywood@gov.im; Curphey,  Emily Emily.Curphey@gov.im; Randall, Caldric (Treasury) Caldric.Randall@gov.im  Cc: Coole, Joanne (Treasury) Joanne.Coole2@gov.im  Subject: Re: Urgent ‐ Castletown Commissioners ‐ Local Authority Petition, School Hill Phase 2 

Dear Sarah, Thank you for your email and given the various concerns raised I would support extra diligence in agreeing this petition and an updated cost estimate. Yours truly

Dr Alex Allinson MHK for Ramsey Legislative Buildings Finch Road Douglas Isle of Man
IM1 3PW British Isles Office Tel | (01624) 651517 Mobile | (07624) 427426 Alex.Allinson2@gov.im | www.tynwald.org.im | allinson@isleofman.com

Sent from Outlook for iOS From: De‐Yoxall, Sarah Sarah.De‐Yoxall@gov.im  Sent: Friday, October 3, 2025 12:23:26 PM  To: Allinson, Alex Alex.Allinson2@gov.im; Haywood, Michelle (MHK) Michelle.Haywood@gov.im; Curphey,  Emily Emily.Curphey@gov.im; Randall, Caldric (Treasury) Caldric.Randall@gov.im  Cc: Coole, Joanne (Treasury) Joanne.Coole2@gov.im  Subject: Urgent ‐ Castletown Commissioners ‐ Local Authority Petition, School Hill Phase 2 

Dear Ministers, Caldric and Emily     We have received a petition request from DOI on behalf of Castletown Commissioners and their phase 2 project for  School Hill. The petition amount is for a significant sum of £13m and this has increased from an estimate of £6.7m  back in 2021 when the scheme for all phases (1‐4) was originally supported.      I have some concerns which I believe we should get comfort on prior to recommending Treasury approve this, these  are as follows;     s.25 6 1. Phase 1 of the project was overspent by c£2.5m, I believe PMU had to provide additional support to  Castletown so that the project could be completed and overspends contained  2.
        3.
     4. Who is owning this project at Castletown given that this phase of the project is larger than the first and the  RFO and Deputy RFO are absent? The September 2025 report we have received from PMU states the client  as the absent RFO.  5. Has a new RFO been approved by DOI?  6.
        7. Can DOI confirm they are content the Local Authority is undertaking all the functions required (including  financial functions) and re‐confirm approval for the petition and Section 51 of the Local Government Act?     Many Thanks    Sarah       Out of scope s.35(b)(ii) Document 3 3   Hi Emily    Thanks for the email and all the comments.    In summary, to provide Treasury Board with comfort we would need confirmation on the following:    ‐ The RFO appointment is approved by the Department –  discharging the responsibilities under the Audit Act  ‐ Clarity is obtained on who will be actively sponsoring the project at the LA side as this is still unclear  ‐ Confirmation on the role of PMU in respect of LA’s and     – whilst this has been done for Castletown  previously it was not clear that this is something provided as a matter of course.    Many Thanks    Sarah        From: Curphey, Emily Emily.Curphey@gov.im   Sent: 08 October 2025 14:06  To: De‐Yoxall, Sarah Sarah.De‐Yoxall@gov.im  Cc: Randall, Caldric (Treasury) Caldric.Randall@gov.im; Barks, Shane Shane.Barks@gov.im; Bond, Matt 

; Coole, Joanne (Treasury) Joanne.Coole2@gov.im  Subject: RE: Urgent ‐ Castletown Commissioners ‐ Local Authority Petition, School Hill Phase 2     Dear Sarah

Thank you for you queries around School Hill.

I have collated the comments on this below.

Blue are the comments from the PMU, red are the additional comments from Shane and the green comments are updates from me ( – the comments are also arranged from PMU first, then Shane and then me where appropriate if that assists..)

Whilst we have updated the Minister about this we have not cleared this response with her. My suggestion is that we work as officers to determine what is required to satisfy Treasury to enable you to make the decision around this projects.

  1. Phase 1 of the project was overspent by c£2.5m, I believe PMU had to provide additional support to  Castletown so that the project could be completed and overspends contained    While the project went over budget, the overspend can be broken down as follows:    ‐ Additional construction costs (COVID impact inflation):                                 £500,000  ‐ Associated professional fees:                                                                                   £95,020    These are not true overspends, but rather packages of work moved within the overall programme:    s.25 s.25 Out of scope 1 Winning, Simon From: Curphey, Emily Sent: 12 October 2025 08:29 To: De-Yoxall, Sarah Cc: Randall, Caldric (Treasury); Barks, Shane; Bond, Matt; Coole, Joanne (Treasury) Subject: Re: Urgent - Castletown Commissioners - Local Authority Petition, School Hill Phase 2 Hi Sarah I’m free from 9.30 to 11 tomorrow but can move other things around if that doesn’t suit you? Thanks Emily
    Sent from Outlook for iOS From: De-Yoxall, Sarah Sarah.De-Yoxall@gov.im Sent: Saturday, October 11, 2025 8:03:27 PM To: Curphey, Emily Emily.Curphey@gov.im Cc: Randall, Caldric (Treasury) Caldric.Randall@gov.im; Barks, Shane Shane.Barks@gov.im; Bond, Matt ; Coole, Joanne (Treasury) Joanne.Coole2@gov.im Subject: RE: Urgent - Castletown Commissioners - Local Authority Petition, School Hill Phase 2
    Hi Emily,
    I think it would probably be useful to have a call Monday. Can you let me know if you have any time free? Thanks Sarah From: Curphey, Emily Emily.Curphey@gov.im
    Sent: 10 October 2025 17:12 To: De-Yoxall, Sarah Sarah.De-Yoxall@gov.im Cc: Randall, Caldric (Treasury) Caldric.Randall@gov.im; Barks, Shane Shane.Barks@gov.im; Bond, Matt Matt.Bond@gov.im; Coole, Joanne (Treasury) Joanne.Coole2@gov.im Subject: RE: Urgent - Castletown Commissioners - Local Authority Petition, School Hill Phase 2
    Hi Sarah s.25 Document 4 2 With regards to the RFO position the Department is obtaining some additional information from the Commissioners. To be clear this is for an interim RFO to cover while the Clerk/RFO is absent from work. I will update you when this information has been submitted and the Department have considered the position.

On the School Hill project, PMU has been acting as the Employer's Agent, representing the interests of the Local Authority and the Department throughout the design, tender, and building contract phases, typically encompassing the feasibility stages of development.

PMU has been reporting to the Castletown Clerk, and in their absence, to their nominated officer. Additionally, PMU has been coordinating with Castletown’s Project Liaison Officer, who has been managing tenant relocations. When the project encountered difficulties, PMU became more heavily involved to keep the project on track and minimise financial escalation.

This role is not new for PMU;

I hope this provides a clearer picture of our role and the collaborative efforts in place for the School Hill project. Please let me know if you need any further details or have additional questions.

Thanks

Emily

Emily Curphey MRTPI Chief Officer Department of Infrastructure Sea Terminal Building Douglas Isle of Man
IM1 2RF

email: emily.curphey@gov.im

Telephone: 01624 685 161

s.35(b) (ii) Out of scope 4

Duplicate email 5

Duplicate email 6

Duplicate email Document 5 Document 6 2

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From: Coole, Joanne (Treasury) Joanne.Coole2@gov.im   Sent: 22 October 2025 13:40  To: Curphey, Emily Emily.Curphey@gov.im  Cc: Bond, Matt 

; Robinson, Jeffrey  ; De‐Yoxall, Sarah  Sarah.De‐Yoxall@gov.im; Barks, Shane Shane.Barks@gov.im;      Subject: RE: School Hill ‐ Castletown  

Hi Emily    I am looking to get a decision on this today.      A there have been numerous emails in relaƟon to this, I would appreciate it if you could confirm that DOI’s SecƟon  51 approval of the borrowing sƟll stands, as Treasury approval is conƟngent on this point.    Thanks    Jo        Jo Coole |Interim Head of Governance  Financial Governance Division | Yn Tashtey | Treasury | 1st Floor Central  Government Office | Bucks Road, Douglas, Isle of Man, IM1 3PX      Tel 01624 687065|  joanne.coole2@gov.im|www.gov.im/financialgovernance          From: Curphey, Emily Emily.Curphey@gov.im   Sent: 17 October 2025 15:48  To: De‐Yoxall, Sarah Sarah.De‐Yoxall@gov.im; Barks, Shane Shane.Barks@gov.im;      Cc: Bond, Matt 

; Coole, Joanne (Treasury) Joanne.Coole2@gov.im; Robinson, Jeffrey    Subject: RE: School Hill ‐ Castletown  

Dear Sarah

We have now received sufficient information from Castletown Commissioners to be able to approve the appointment of an interim RFO. This has now been signed and we will inform the Board today.

s.25 s.25 s.25 s.25 s.25 s.25 6

Emily Curphey MRTPI Chief Officer Department of Infrastructure Sea Terminal Building Douglas Isle of Man
IM1 2RF

email: emily.curphey@gov.im

Telephone: 01624 685 161

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From: De‐Yoxall, Sarah Sarah.De‐Yoxall@gov.im   Sent: 16 October 2025 09:20  To: Barks, Shane Shane.Barks@gov.im; 

; Curphey,  Emily Emily.Curphey@gov.im  Cc: Bond, Matt  ; Coole, Joanne (Treasury) Joanne.Coole2@gov.im; Robinson,  Jeffrey    Subject: RE: School Hill ‐ Castletown  

Thanks Shane.    It reads to me that the proposed interim RFO has experience in    needed during the period of absence. The DOI website refers to the RFO providing  the financial management of a LA,     – you were waiƟng for the JD that was used to appoint so that this could be compared. Has this been  received and compared? Is this person full Ɵme or part Ɵme?    I think it would be beneficial to understand the split of duƟes between the external firm and this appointment eg,  given the Ɵming, who would be preparing the LA budget?     Regarding the client of the project,  . I would assume  that they would be able to deal with the tenants and logisƟcs aspect. Again, this support alongside the interim clerk  may be suitable but I have nothing to assess this against. My suggesƟon would be that it’s agreed from the outset  who would be acƟng in the role as ‘client’ for the purpose of this project and there is clarity on what is expected and  where the responsibility for project decisions falls.      s.25 s.25 s.25 s.25 s.25 s.25 s.25 10 In doing so are we content that the applicant is suitable to oversee/carry out the day to day BAU financial operation of the Authority? Does the applicant have the necessary expertise to oversee the School Hill Project?

School Hill Project

If the applicant to the interim RFO position does not have the necessary expertise to oversee the School Hill project what is in place to provide this oversight and/or what additional requirements are needed to be put in place by Castletown commissioners to provide for this?

Who is undertaking the Client role from the Commissioners whilst the current Clerk is absent? Is this sufficient? What else could/should Castletown Commissioners be putting in place to ensure proper governance of the scheme?

If we do not get to a point where we are all confident with the oversight/ management of this project what are the options and which is our preferred option?

What are the risks and how are we mitigating these?

Happy for others to add to this in terms of the issues that we need to get assurance on before proceeding.

I will look to get some time for us to discuss this this week so that we can come up with an agreed position.

Kind regards

Emily

Emily Curphey MRTPI Chief Officer Department of Infrastructure Sea Terminal Building Douglas Isle of Man
IM1 2RF

email: emily.curphey@gov.im

Telephone: 01624 685 161

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Freedom of Information
Seyrsnys Fysseree

The Treasury Government Office

[Response truncated — full text is 24,442 characters]