He insisted that the plan was only deferred because of an unforeseen bill for treating patients in the UK.

And replying to a question from Brenda Cannell (Douglas East), he maintained that there had been no policy change but rather an 'operational mechanism' which had now been put on hold.

David Callister MLC asked if the minister would learn from the 'bad mistakes' of his department including the 'disastrous' fluoridation campaign.

Mr Teare replied: 'We have listened and I still feel this is the right way forward.'

The plan to stop long-stay residential admissions is part of a DHSS strategy to care for the elderly in their own homes.

But former health minister Clare Christian MLC asked how, if the plan was resurrected as the minister indicated, he would staff the community element of the service.

'I believe there was a lack of clarity in the proposal as to how the service would be delivered,' she said.

Accused by Mrs Cannell of making policy change announcements without consultation and then reversing them, Mr Teare replied: 'I have not announced a reversal of the policy change as there was no policy change.

'I have not reversed the long standing policy, but I have temporarily deferred the operational mechanism which was going to help us to implement the policy of increasing community-based care for older people.'

He insisted the scheme was fully costed with £400,000 earmarked for its first year but that the department had then received news that it could be facing a seven-figure bill for the cost of treating patients in the UK.

'A week last Thursday I was briefed in the early hours that there was an issue with the reciprocal health agreement which could have serious cost implications.

'We are negotiating with North West healthcare and we are hopeful we will be able to resolve this issue. Acknowledging the difficulties we may have to face I felt we had to stand back from the original proposal.'

He claimed the media and others had 'misrepresented' what the DHSS had planned to do and insisted the care agencies were 'indeed supportive' of his department's 'direction of travel'. He asked the elderly for the patience will resources were found to roll out expanded community care services.

But he ducked calls by Bill Henderson (Douglas North) and David Cannan (Michael) for the DHSS to get Tynwald approval resurrecting the residential home proposals.