Awarding Manx Radio the rights to broadcasting the TT without going to tender was not a ‘back door subsidy’, Treasury Minister Eddie Teare insisted in Tynwald.
Mr Teare explained that Treasury has agreed that no competitive tender process has to take place as Manx Radio was the only radio station able to provide the TT service without interruption to its normal broadcasting.
He said the Department of Economic Development’s request for an ‘FD8 waiver’ – waiving the requirement to go to tender – was ‘taken on the merits of this case alone’.
But this didn’t satisfy Peter Karran (Lib Vannin, Onchan).
He asked the Treasury Minister to justify the situation, given that a three-year contract had been signed by Manx Radio in November 2006.
‘Despite this agreement here we are in 2013 and there has been no opportunity for other interested parties to go out to tender as far as that contract is concerned. The likes of this could be seen as another back-door way of subsidy, as far as Manx Radio is concerned, over the other competitors.’
Mr Teare replied: ‘No, I do not consider it as a back-door subsidy. I regard it as payment for a specific service for a specific period of time.’
Manx Radio chairman David North and managing director Anthony Pugh were due this afternoon (Thursday) to give evidence to the Tynwald select committee investigating the future of public service broadcasting. The sitting in the Legislative Council chambers is at 2.30pm.
