Tourism Minister Adrian Earnshaw believes the relationship between his department and Honda is good, despite persistent rumours to the contrary.
The official HM Plant Honda team will not compete at T.T. 2008, but the Hydrex team will receive assistance.
And it's reported there are doubts about whether Honda Day at Peel will go ahead.
At the Centenary event, Honda were presented with a wrongly inscribed Manufacturer winning trophy which showed Yamaha as the winners.
Mr Earnshaw says he was aware of the mistake:-