Chief Minister Tony Brown says every effort is being made to persuade the United Kingdom to release funds belonging to collapsed bank Kaupthing Singer and Friedlander (Isle of Man).

The issue was hotly debated during question time in Tynwald today, with both Mr Brown and Treasury Minister Allan Bell facing queries from members.

There will be a debate later this afternoon, sparked by motions from Michael MHK David Cannan, but this morning Douglas North MHK Bill Henderson asked the Chief Minister what representations had been made to the UK.

Mr Brown told him:

"There has been constant contact at official level and at regulatory level between the Isle of Man and the United Kingdom since it became clear that Kaupthing Singer and Friedlander (Isle of Man) were in difficulty.

"There have been contacts with the Ministry of Justice, the United Kingdom Treasury, the Financial Supervision Authority and the Bank of England.

"In addition, I have personally written to Jack Straw, Lord Chancellor and Secretary of State for Justice, and I have also written to the new Minister for the Crown Dependencies. The United Kingdom, as I have previously stated, has agreed to represent the Isle of Man in this matter, as it is clearly a matter of international representation.

"I do not consider it would be appropriate, while negotiations are ongoing, to reveal details of the negotiations. I am, however, willing to say that our efforts internationally are aimed at seeking to prevent Kaupthing Singer and Friedlander (Isle of Man) from going into liquidation."

North Douglas MHK Bill Henderson then sought a further reassurance from Mr Brown that his contacts with the appropriate authorities would remain "consistent, constant and reflect the urgency" of the Island's situation in the matter.

Mr Brown replied:

"Certainly the efforts that are being put in are endeavouring to ensure the United Kingdom and others are aware of the urgency of this situation, not only to the Isle of Man but to the depositors of the bank."

You can hear Manx Radio's continuing coverage of Tynwald's October sitting on AM 1368.