Chief Minister Alf Cannan says an agreement signed with Liverpool is a way to learn from each other.
In the House of Keys this week he faced questions from Onchan MHK Julie Edge, who said she was worried the memorandum of understanding signed last month handed over powers to Merseyside.
Mr Cannan described the claim as "ridiculous".
He said the memorandum was designed to help both the Island and the city learn from each other:
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