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Public Service Broadcasting (2018) S E L E C T C O M M I T T E E O F T Y N W A L D C O U R T O F F I C I A L R E P O R T R E C O R T Y S O I K O I L B I N G E R – L H E H T I N V A A L P R O C E E D I N G S D A A L T Y N Public Service Broadcasting (2018) HANSARD Douglas, Thursday, 10th May 2018 PP2018/0092 PSB18, No. 3 All published Official Reports can be found on the Tynwald website: www.tynwald.org.im/business/hansard Published by the Office of the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. © High Court of Tynwald, 2018 SELECT COMMITTEE, THURSDAY, 10th MAY 2018 Members Present: Chairman: Dr A J Allinson MHK Mr T M Crookall MLC Hon. J P Watterson SHK Clerk: Mr J D C King Assistant Clerk: Mr A Cooke Contents Procedural .................................................................................................................................... 105 EVIDENCE OF Hon. Alfred Cannan MHK, Minister, and Mr Caldric Randall, Financial Controller, Treasury ....................................................................................................................................... 105 The Committee sat in private at 3.35 p.m. .................................................................................. 121 __________________________________________________________________ 104 PSB18 SELECT COMMITTEE, THURSDAY, 10th MAY 2018 Select Committee of Tynwald on Public Service Broadcasting (2018) The Committee sat in public at 2.30 p.m. in the Legislative Council Chamber, Legislative Buildings, Douglas [DR ALLINSON in the Chair] Procedural The Chairman (Dr Allinson): Welcome to this public meeting of the Select Committee of Tynwald on Public Service Broadcasting. I am Alex Allinson, MHK and I chair this Committee. With me are the Hon. Juan Watterson, Speaker of the House of Keys, and Mr Tim Crookall MLC. Please ensure that your mobile phone is off or on silent so that we do not have any 5 interruptions. For the purposes of Hansard I will be ensuring that we do not have two people speaking at once. On 16th January 2008 it was resolved: That Tynwald reaffirms its commitment to public service broadcasting and is of the opinion that it should be provided in an efficient manner using a variety of channels; and that a Select Committee of three Members be appointed to review the current licence conditions, delivery model and funding thereof, and connected matters, to take account of technological advances and demographic changes; and report with recommendations by July 2018. This afternoon we welcome representatives of the Treasury. EVIDENCE OF Hon. Alfred Cannan MHK, Minister, and Mr Caldric Randall, Financial Controller, Treasury Q303. The Chairman: For the record, please would you each state your name and role and 10 how long you have been in that role. The Minister for the Treasury (Mr Cannan): Alfred Cannan, Treasury Minister, appointed October 2016. 15 Mr Randall: Caldric Randall, Financial Controller, April 2015 – it was a long time ago. Q304. The Chairman: Welcome to the Committee and thank you very much for taking the time to come along today. Would you like to make any opening statements at all? 20 The Minister: No. The Chairman: Okay, thank you very much. __________________________________________________________________ 105 PSB18 SELECT COMMITTEE, THURSDAY, 10th MAY 2018 Q305. The Speaker: If we can move on to the funding of Manx Radio, and starting with the subvention. Tynwald agreed in March 2014 that the subvention should be £850,000 in 2014-15 25 plus CPI thereafter. It was raised in 2015-16 to £875,000, an increase of 2.9%: was that CPI in that year, do we know? Was it uplifted by CPI in 2015-16? Mr Randall: I honestly do not know – it was before I started. 30 Q306. The Speaker: Okay. But then in 2016-17, 2017-18 and 2018-19 it remained at £875,000. (The Minister: Correct.) Why wasn’t it uplifted by CPI? Mr Randall: The way that the budgeting works is in a similar way to as it does with other parts of Government where the previous year’s amount is assumed in the budgeting process. 35 We then ask for bids through from the bodies and when those bids come through they are assessed by the Treasury. So there is no automatic uplift. But I will have to check back on the records for 2015-16; like I said, that was before I started. But I suspect that would have been an increase on the basis of a bid rather than an automatic inflationary increase. That would be the case with the other years as well. 40 Q307. The Speaker: So it appears that the Tynwald resolution of March 2014 was effectively ignored by the previous Treasury Minister? Mr Randall: I thought that the previous recommendation, as amended, was that it would 45 remain as it was with periodic reviews – Q308. The Speaker: And were there any periodic reviews? Mr Randall: – and not to be uplifted by inflation – it was not amended. 50 Q309. The Speaker: What were the periodic reviews? Were there any periodic reviews done within Treasury at all since 2014? The Minister: Clearly we have an annual budgeting process, so that is effectively a periodical 55 review. Q310. The Speaker: So there is an active process where the Manx Radio budget, specifically that line, was reconsidered and it has been reconsidered at – ? 60 The Minister: There is a specific process where Manx Radio have to put in a budget submission on an annual basis. Q311. The Speaker: And we will return to that theme a little later, I am sure. Turning to the capital costs: the 2018 Pink Book includes an allowance of £150,000 in 2018. 65 What is that for? Mr Randall: For minor capital works. Q312. The Speaker: Such as? 70 Mr Randall: Sorry, I have not got the details of exactly what it is for, but it will be for works to do with … Yes, ongoing minor capital works for maintenance of Broadcasting House and other sites allocated to Manx Radio. But it is not in relation to the extension. So it would be other essential works that are required. __________________________________________________________________ 106 PSB18 SELECT COMMITTEE, THURSDAY, 10th MAY 2018 75 Q313. the Speaker: And it is not to do with the transmitter network? Mr Randall: No. Q314. The Speaker: And is that a typical figure for annual capital works at Manx Radio? 80 The Minister: I was going to tell you that capital approval 2010-11, £200,000; 2011-12, £250,000; £50,000 in 2012-13; £250,000 … So up to £400,000 in 2015-16, so slightly down – Q315. The Speaker: It is not untypical? 85 The Minister: So, in the last eight years there is some £800,000 worth of – Q316. The Chairman: And just for our clarification this is above and beyond the subvention? 90 The Minister: Above and beyond, yes; capital works. Q317. The Speaker: The 2018 Pink Book also refers to a sum of £969,000 for Broadcasting House subject to future approval. So in conjunction with the £800,000 worth of capital spend, plus another nearly £1 million to come, is Broadcasting House really value for money? 95 The Minister: Well, I think that is why we have been delaying bringing forward the capital plans for Broadcasting House. We at Treasury are keen to get more clarity over what the future is for the radio station and have tried to extract from the directors what plans that they have to modernise the radio station. And obviously since this Select Committee was established then 100 there has been absolutely no reason for us to discuss with Manx Radio progressing that matter. Q318. The Speaker: We understood from evidence given by Mr Pugh that the budget submission for Manx Radio was never discussed with Treasury – that it was submitted but then Treasury did not pick that up. 105 The Minister: Well, I think the £955,000 is a capital project – it is not in that budget submission. But their budget submission, you are correct, I think there has been a slight error. I understand, and I am sure the Financial Controller will confirm this, but in the initial submission on the covering page it asks for what additional bids, how much is being asked for, 110 and it had ‘non-applicable’ or n/a on there; and as a result, the initial assessment put that to one side because there were obviously a number of bids coming in which had stated amounts on. So that is why that was missed, I would suggest. Mr Randall: So that is the revenue bid, that is in addition to subvention. 115 Obviously the business case for Broadcasting House, the next element of that, was fully considered. I think it was submitted with evidence of timeline, so that went through numerous groups, through the Business Case Working Group, through the SACIC – the Strategic Asset and Capital Investment Committee – and then through into Treasury. So certainly that full business case has gone through. 120 Q319. The Speaker: So as far as Treasury is concerned, is there any reason that Manx Radio’s case for Broadcasting House should be considered any differently from any other Government Department’s premises requirements through Strategic Asset Management Unit? 125 The Minister: No. __________________________________________________________________ 107 PSB18 SELECT COMMITTEE, THURSDAY, 10th MAY 2018 Q320. The Speaker: Finally from me on this particular part: it was in the Pink Book again that Manx Radio’s funding for 2018-19 includes £80,000 for the maintenance of AM transmitters, which you say in your submission is transferred to them from DHA at their request.
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