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Interim Report of the Select Committee on Public Service Media

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Interim Report of the Select Committee on Public Service Media PP 2018/0107(2) INTERIM REPORT OF THE SELECT COMMITTEE ON PUBLIC SERVICE MEDIA 2017–18 Volume 2 INTERIM REPORT OF THE SELECT COMMITTEE ON PUBLIC SERVICE MEDIA On 16th January 2018 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. The powers, privileges and immunities relating to the work of a committee of Tynwald are those conferred by sections 3 and 4 of the Tynwald Proceedings Act 1876, sections 1 to 4 of the Privileges of Tynwald (Publications) Act 1973 and sections 2 to 4 of the Tynwald Proceedings Act 1984. Committee Membership Dr A J Allinson MHK (Ramsey) Mr T M Crookall MLC The Hon J P Watterson SHK (Rushen) Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas IM1 3PW (Tel: 01624 685520) or may be consulted at www.tynwald.org.im All correspondence with regard to this Report should be addressed to the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. Table of Contents Volume 1 I. INTRODUCTION ..............................................................................................1 THE STAFF AT MANX RADIO 2 II. BACKGROUND: DEBATE AND DELAY ...............................................................2 THE BBC: VALUE FOR MONEY HALF-HEARTEDLY PURSUED, THEN KNOCKED OFF COURSE BY EVENTS 3 MANX RADIO: STATUTORY BASIS NOT YET IN PLACE 5 III. TECHNOLOGICAL CHANGE: “CONTENT IS KING” ..............................................7 IV. DEFINITIONS OF PUBLIC SERVICE MEDIA .........................................................9 CHARACTERISTICS OF PUBLIC SERVICE 9 IMPLICATIONS FOR BROADCASTING LEGISLATION 10 V. AUDIO DISTRIBUTION: PAST, PRESENT AND FUTURE ..................................... 12 FM AND AM RADIO 12 DAB AND DAB+ 14 INTERNET RADIO 17 VI. MANX RADIO’S COMMERCIAL ACTIVITY ....................................................... 18 IS THE PROVISION OF A PLATFORM FOR RADIO ADVERTISING ITSELF A PUBLIC SERVICE? 19 DOES RELIANCE ON COMMERCIAL INCOME DISTORT PUBLIC SERVICE? 20 DOES RECOURSE TO A PUBLIC SUBVENTION DISTORT THE COMMERCIAL MARKET? 20 VII. MANX RADIO FUNDING AND GOVERNANCE ................................................. 23 THE PUBLIC FUNDING MODEL ADOPTED BY TYNWALD IN 2014 23 MANX RADIO’S STRATEGY SINCE MARCH 2014 23 MANX RADIO’S BUDGET BID FOR 2018/19 25 TREASURY AS SHAREHOLDER 28 THE COMMUNICATIONS COMMISSION AND FUNDING 29 VIII. LIST OF CONCLUSIONS AND RECOMMENDATIONS ........................................ 31 ANNEX 1: TYNWALD RESOLUTION OF 13TH JULY 2011 ARISING FROM THE REPORT OF THE SELECT COMMITTEE ON THE TELEVISION LICENCE FEE .............................. 37 ANNEX 2: TYNWALD RESOLUTION OF 18TH MARCH 2014 ARISING FROM THE REPORT OF THE SELECT COMMITTEE ON PUBLIC SERVICE BROADCASTING ........... 39 ORAL EVIDENCE ................................................................................................... 41 26TH APRIL 2018 - EVIDENCE OF: MR RON BERRY, MANAGING DIRECTOR, 3FM; MR JUAN TURNER, MANAGING DIRECTOR OF I-TEL, REPRESENTING ENERGY FM; DR RICHARD ARNING, DIRECTOR AND CHAIRMAN, ISLE OF MEDIA; HON. R H QUAYLE MHK, CHIEF MINISTER, HON. C C THOMAS MHK, MINISTER FOR POLICY AND REFORM, MRS D FLETCHER, MBE, EXECUTIVE DIRECTOR OF CROWN AND EXTERNAL RELATIONS 43 2ND MAY 2018 – EVIDENCE OF MR BILL MUMMERY, CHAIRMAN, AND MR ANTHONY PUGH, MANAGING DIRECTOR, RADIO MANX LIMITED; AND HON. BILL MALARKEY, MHK, CHAIRMAN, AND MS SUE STRANG, ACTING DIRECTOR, COMMUNICATIONS COMMISSION 101 10TH MAY 2018 – EVIDENCE OF HON. ALFRED CANNAN MHK, MINISTER, AND MR CALDRIC RANDALL, FINANCIAL CONTROLLER, TREASURY 149 31ST MAY 2018 – EVIDENCE MR KEN MACQUARRIE, DIRECTOR OF NATIONS AND REGIONS, BBC; MS LAURA ELLIS, HEAD OF DIGITAL, BBC ENGLISH REGIONS; AND MR LUKE MCCULLOUGH, PARLIAMENTARY AND CORPORATE AFFAIRS MANAGER, BBC 171 WRITTEN EVIDENCE ........................................................................................... 199 APPENDICES: BROADCASTERS ............................................................................ 201 APPENDIX 1: SUBMISSION DATED 12TH JANUARY 2018 FROM MANX RADIO 203 APPENDIX 2: SUBMISSION DATED 26TH APRIL 2018 FROM MANX RADIO – ANALYSIS OF BBC FUNDING OF REGION SPECIFIC SERVICES 221 APPENDIX 3: SUPPLEMENTARY SUBMISSION DATED 5TH JUNE 2018 FROM MANX RADIO 241 APPENDIX 4: SUBMISSION DATED 18TH JUNE 2018 FROM MANX RADIO AND 'PUBLIC BROADCASTING: ITS PAST AND FUTURE’ 249 APPENDIX 5: SUBMISSION DATED 20TH FEBRUARY 2018 FROM LAURA ELLIS, HEAD OF DIGITAL, BBC ENGLISH REGIONS 271 APPENDIX 6: SUBMISSION DATED 3RD MAY 2018 FROM MR KEN MACQUARRIE, DIRECTOR OF NATIONS AND REGIONS, BBC 275 APPENDIX 7: SUBMISSION DATED 9TH FEBRUARY 2018 FROM RON BERRY, 3FM 283 APPENDIX 8: SUBMISSION DATED 21ST MAY 2018 FROM RON BERRY, 3FM 299 APPENDIX 9: SUBMISSION DATED 14TH JUNE 2018 FROM PAUL MOULTON 305 APPENDICES: PUBLIC AUTHORITIES .................................................................... 313 APPENDIX 10: SUBMISSION DATED 14TH FEBRUARY 2018 FROM THE COUNCIL OF MINISTERS 315 APPENDIX 11: SUBMISSION DATED 14TH FEBRUARY 2018 FROM TREASURY 319 APPENDIX 12: SUBMISSION DATED 8TH MAY 2018 FROM TREASURY 385 APPENDIX 13: SUBMISSION DATED 9TH FEBRUARY 2018 FROM THE COMMUNICATIONS COMMISSION 389 APPENDIX 14: SUBMISSION DATED 14TH FEBRUARY 2018 FROM MS EMMA CALLIN, ARTS DEVELOPMENT MANAGER, DEPARTMENT OF EDUCATION, SPORT AND CULTURE 431 APPENDIX 15: SUBMISSION DATED 13TH FEBRUARY 2018 FROM MR JULIAN LALOR-SMITH, DEPUTY CHIEF EXECUTIVE, DEPARTMENT OF HOME AFFAIRS 435 APPENDIX 16: SUBMISSION DATED 4TH MAY 2018 FROM MS JANE QUAYLE, COMMUNICATIONS DIVISION, DEPARTMENT OF HOME AFFAIRS 437 APPENDIX 17: SUBMISSION DATED 26TH FEBRUARY 2018 FROM MR ADRIAN CAIN, CHAIRMAN OF THE GAELIC BROADCASTING COMMITTEE 441 APPENDIX 18: SUBMISSION DATED 6TH JUNE 2018 FROM MS SUE OWENS, PERMANENT SECRETARY, DEPARTMENT OF DIGITAL, CULTURE, MEDIA AND SPORT 445 VOLUME 2 APPENDICES: OTHERS ........................................................................................ 451 APPENDIX 19: SUBMISSION DATED 12TH FEBRUARY 2018 FROM MRS DAPHNE CAINE MHK 453 APPENDIX 20: SUBMISSION DATED 12TH FEBRUARY 2018 FROM MRS LYNDA CANNELL 461 APPENDIX 21: SUBMISSION DATED 14TH FEBRUARY 2018 FROM MRS PAULINE DEHAVEN 465 APPENDIX 22: SUBMISSION DATED 14TH FEBRUARY 2018 FROM MR ROGER TOMLINSON 469 APPENDIX 23: SUBMISSION DATED 14TH FEBRUARY 2018 FROM MR MICHAEL WILSON, ISLE OF MEDIA 477 APPENDIX 24: SUBMISSION DATED 26TH APRIL 2018 FROM MR RICHARD ARNING, ISLE OF MEDIA 485 APPENDIX 25: SUBMISSION DATED 7TH MARCH 2018 FROM AN ANONYMOUS CONTRIBUTOR 495 APPENDIX 26: SUBMISSION DATED 9TH MARCH 2018 FROM MR SCOTT SMITH 499 APPENDIX 27: SUBMISSION DATED 30TH MAY 2018 FROM ROGER GANE, TECHNICAL ADVISER TO RADIO CENTRE, RAJAR 503 APPENDIX 28: SUBMISSION DATED 6TH JUNE 2018 FROM MS SALLY-ANN WILSON, CEO, PUBLIC MEDIA ALLIANCE 507 APPENDIX 29: SUBMISSION DATED 15TH JUNE 2018 FROM MR GRAHAM DIXON, HEAD OF RADIO, EBU MEDIA 535 APPENDIX 30: SUBMISSION DATED 8TH MAY FROM MRS KERRY SHARPE MLC 587 APPENDICES: OTHER JURISDICTIONS .................................................................. 591 APPENDIX 31: PUBLIC SERVICE BROADCASTING COMPARISON OF JURISDICTIONS AND POTENTIAL FUTURE DEVELOPMENTS IN BROADCASTING TECHNOLOGY 593 APPENDIX 32: SUBMISSION DATED 28TH FEBRUARY 2018 FROM MS CHERIE CLIFFORD, DEPUTY CLERK OF THE LEGISLATIVE ASSEMBLY, FALKLAND ISLANDS 603 APPENDIX 33: SUBMISSION DATED 26TH APRIL 2018 FROM MS KYLIE HERCULES, ST HELENA 607 APPENDICES: OTHERS 451 452 APPENDIX 19: Submission dated 12th February 2018 from Mrs Daphne Caine MHK 453 454 Submission to the Select Committee on Public Service Broadcasting from Daphne Caine MHK I submit the following personal views for consideration by the Select Committee Members. I have read many reports going back decades on Manx Radio, Public Service Broadcasting, the Subvention and the BBC licence. However, I refer mainly to the two most recent select committee reports in my submission below and I would be happy to elaborate or discuss this further if the committee wishes. 1. Public Service Broadcasting – and the BBC licence fee The matter of the annual subvention to Manx Radio to fund public service broadcasting was included in my election manifesto. I feel strongly that the Isle of Man needs public service broadcasting – that is essential in a true democracy, and even more important, I believe, in a jurisdiction without an official Government opposition and in an age of social media and fake news. The Island has been well served by Manx Radio. However, as I said in my speech seeking the establishment of this Select Committee, I believe the structure of how public service broadcasting is provided on the Isle of Man requires a fundamental review. How Manx Radio management is forced to interact with three government departments and essentially how it is funded seem to me to be inappropriate. The previous committee (2013/14 on Public Service Broadcasting) sought to have the final word on the matter: Recommendation 4: Treasury should continue to fund Manx Radio to at least the level of £850,000 which applies on 2014/15 plus CPI thereafter; that any future public service broadcasting licence should come with a
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