The Coroner has told a senior government official some of the evidence he gave to the TT inquest was farcical.

Michael Moyle had heard from Director of Highways Bruce Hannay that, prior to last year's races, he personally 'signed off' an area prohibiting spectators from the lay-by at the 26th Milestone.

The question of whether two fans who died when they were struck by a motorcycle there were in a 'prohibited zone' is one of the key issues being examined by Mr Moyle.

The inquest heard Mr Hannay took on the task of getting permission from land owners to set up some of the prohibited zones after the then organisers of the races, the Manx Motorcycle Club, said there were too many for them to deal with them all.

Mr Hannay said he felt he had authority to sign off the one at the 26th Milestone because he thought the land was owned by the Department of Agriculture, another government department.

In fact it belonged to the Water Authority and the description placed the area on the right hand side of the course, when it was actually on the left.

Mr Moyle said that meant that, in law, the zone had no validity.

Mr Hannay said there was no mistaking where the zone was, because there was only one lay-by at the 26th Milestone.

He was told it hardly inspired confidence in the Department of Transport, and the discussion was becoming farcical.

Mr Hannay also categorically denied his department was responsible for putting out 'prohibited area' signs, but this morning two DoT employees said they had been doing it for many years. In reply Mr Hannay said he hadn't been made aware of that.

The three people who died in the incident were spectators Dean Adrian Jacob, of Kidderminster and Gregory John Kenzig from Australia, and TT rider Marc Ramsbotham, from Norfolk.

The inquest has been adjourned and Mr Moyle is due to give his verdicts next week.