The Liberal Vannin Party has commented after the Treasury Minister announced the Isle of Man government had sold about half its shares in Pinewood Studios.
The party, which has been consistently critical of the investment, released a statement this afternoon.
It reads:
There is no doubt that the news that Treasury have arranged to sell roughly half of its holding in Pinewood for a profit of 50 per cent is good news. Not such good news as the Treasury Minister, Eddie Teare, is portraying but good news nonetheless.
Minister Teare has always maintained that the investment in shares in Pinewood and the media advice/management of the media development fund are linked and has even referred to it as a hedge, although we are not quite sure how the definition of a hedge ties in with the Pinewood deal, so let’s have a quick recap of events since 2007 when the methodology of investment in the film industry was changed because of amendments to the VAT regulations.
In 2007 £50,000,000 was transferred onto the balance sheet of CinemaNX Ltd, a privately-owned company, who advised Treasury on which films they should be investing in.
This was not subject to a debate in Tynwald and in fact Tynwald members had no knowledge of this.
It was a five-year contract and not one film made a profit, or broke even, in its own right during that time.
When considering the overall benefit during the five years of the contract with CinemaNX various figures have been quoted by the Chief Minister, Treasury Minister, previous Treasury Minister and Oxford Economics.
There is such a huge difference in their various assertions ranging from millions of gain to millions of losses that it is difficult to differentiate between what is fact and what is pure fantasy.
What we do know for a fact is that at the end of the contract there was roughly £25,000,000 in cash remaining and other assets amounting to some £8,000,000.
It is this £25,000,000 that was the subject of the debate in Tynwald together with the purchase of the Pinewood shares in June 2012.
On November 25 last year, LibVan leader Kate Beecroft asked the Treasury Minister for the current position in respect of the media development fund and it was stated that, at that time, there was some £10,300,000 remaining in cash.
In summary, and leaving aside any additional exchequer benefits and ignoring the £8,000,000 in other assets, between 2007 and 2012 the media development fund was depleted by some £17,000,000 and has been further depleted by some £14,700,000 up to the end of November last year. It has to be hoped that one of the films that has had public funds invested will turn out to be a major block-buster and give us a massive return on investment. It would appear that this film would have to return some £23,550,000 for the combined media development fund and the shares in Pinewood to break even.
So whilst we are delighted that a £2,500,000 profit on some of the Pinewood shares will be realised, we are sure that people will understand why we are not overly delighted about the results as a whole.
Treasury Minister Eddie Teare MHK told iomtoday.co.im: ‘There is nothing new in the latest Liberal Vannin press release on investment in the media industry.
‘The party has a track record of making ill-informed and often misleading statements in its campaign against economic opportunity in the sector, and this appears to be more of the same.’
{http://www.iomtoday.co.im/news/isle-of-man-news/pinewood-shares-sold-at-profit-1-7187344|Click here to read our story about Eddie Teare’s comments}
Former Lib Van leader Peter Karran was sacked from his job as education minister for not toeing the CoMin line on Pinewood deal.{http://www.iomtoday.co.im/news/isle-of-man-news/peter-karran-sacked-from-role-as-education-minister-1-4662841|Click here to read the story}