~ ~ Manx Radio Report to Tynwald

~ Manx Radio Report to Tynwald ~ October 2019

GD 2019/0045 THIS REPORT

In late 2018, Tynwald called upon the Board of Radio Manx Limited to “develop a sustainable operational and funding plan for Radio Manx Limited to be submitted to its Shareholder for presentation to Tynwald by October 2019”. This report will give some detail regarding the position of public service media going into 2020 and well beyond, along with how Manx Radio will keep itself at the forefront of the changes in the way that the community engages with content both on-air and online. This includes new radio and digital content, greater and more open discussions and interaction with the Manx community and the seizing of new opportunities to enable that community to use Manx Radio’s experience and facilities to generate their own content, with appropriate training and support on offer. The management of Manx Radio accept that it has possibly been slow to react to the changing nature of public service media. Across the entire organisation there is a desire and genuine passion to change and be more reflective of the broader community we serve as the source of trustworthy news, information and debate.

Manx Radio will be the service that reflects a nation’s culture back to itself. PRE-AMBLE

PUBLIC SERVICE MEDIA – At a Crossroads Globally In a time of growing polarisation of public opinion, entrenching of personal positions, social media confirmation bias, digital ‘noise’ and a general mistrust of the official ‘line’, it is clear that there is still a vital place for a truly independent, accountable and trustworthy source of news and information. In fact, it could be argued that this is more important now than it has been for many years. Fake news being amplified, without check on social media, means that it has become increasingly difficult for people to discover what is really going on in their own community and around the world. A strong and trusted public service station such as Manx Radio offers a balanced, open and honest opportunity to hear and engage with the story from every perspective. Informing and helping to shape public debate and offering real engagement with the issues of the day by all parties. We are living in a time when anybody can open a social media account and use it to state, as fact, any opinion or view about any element of society they so choose. Whilst this is, undeniably, free speech, if opinions, unsubstantiated by fact or truth, go unchallenged, then they often start to become accepted as fact by the wider community. This begins to have a ‘chilling effect’ on the truth and ultimately democracy itself. There also seems to be a number of social media users who enjoy lobbing in a social media hand grenade whether the ‘facts’ can be proven or not, before stepping back to admire their online handiwork. A mature administration like that on the Isle of Man, deserves no less than a fully independent and properly funded public service media provider and Manx Radio continues to provide that service across a multitude of platforms. As our audience has engaged with new platforms, Manx Radio has always sought to move with them. Our online survey of Manx Parliamentarians (completed by around half of all MHKs and MLCs), showed that 90% said they enjoyed Manx Radio’s coverage of news and our in-depth current affairs coverage. In our Islandwide online public survey, news coverage on Manx Radio was enjoyed by 73% of the community. There is much talk about the popularity of services such as Amazon Prime, YouTube and Netflix and whether, as a result of their success, there is still a need for public service broadcasting. We would strongly argue that the popularity of video on demand services does not make the concept of public service broadcasting redundant. In fact, the growth in demand for such entertainment services makes the need for strong and appropriately funded public media more urgent than ever. This urgency is further increased by the rapid and growing erosion of independent media internationally, exacerbated by growing populism worldwide. Manx citizens are increasingly exposed to global media content that is neither independent nor impartial. Manx Radio offers a truly local service to the Nation at a time when local services elsewhere are being regionalised or closed down altogether.

2 AUDIENCE ENGAGEMENT To be a properly functioning PSB, Manx Radio needs to offer top quality content to the audience where and when it best suits them. We have engaged with the community through our online survey and with members of Tynwald to really drill down into what is expected from Manx Radio as the public service broadcaster going forward. What does the community really want from us? How can we best deliver that in a sustainable way? Are there things we are doing which are no longer fit for purpose? Are there parts of the community we are under serving? The management team at Manx Radio has spent the past few months working on a revamp of our output across the board. A new programme schedule will go live in mid-October (allowing sufficient time for the business team to engage fully with existing and potential advertisers). This new schedule will broaden the appeal of Manx Radio and deliver output in a way more fitting with audience expectations in 2019 and beyond. The management team is very aware that there are parts of our audience that could be better served by Manx Radio both through traditional broadcasting and also by podcasts and other digital methods. We particularly want to attract the under-45s back to Manx Radio for our public service and news content. This is being addressed by the above mentioned new programme schedule and by increasing the number of podcasts available.

OUR NEW VISION Our ambition is to make Manx Radio a more engaged and representative public service media organisation which truly serves and reflects the nation it serves.

ADVISORY MEETINGS We will introduce regular advisory meetings in locations all over the Island, with an open invitation to the community to join us to raise issues and concerns regarding the entire range of Manx Radio functions. These will be open forum meetings with various members of the Manx Radio management team on site to answer questions and hear feedback from the real owners of the station... the Manx public. We also propose to investigate the opportunity to establish a ‘Public Panel’ to report back to the management or trustees on a quarterly basis from these meetings.

PODCASTS, TRAINING AND COMMUNITY ACCESS We believe that we could and should be doing more as the Nation’s PSB to offer training and access to our services for the Manx community. Our new vision for Manx Radio puts the audience and wider Island community at the very forefront of our service, where it belongs.

3 Part of this offering will centre on the increasingly popular podcast. Some of these podcasts will be made by external partners from within the community. This will offer free hosting and exposure to those making the podcasts whilst offering a wider breadth to Manx Radio’s Public Service commitment. Manx Radio production facilities at Broadcasting House, along with the expertise and experience of our staff of journalists and presenters will be available where needed. We are particularly keen to work with schools and colleges to offer ongoing training in this area and have already engaged with MHKs about how to move this forward in a way which works best for all parties. We are sure that this will be a great way to discover and foster fresh talent from across the Island whilst giving a greater voice to the community as a public service broadcaster should. Only an appropriately funded Public Service Broadcaster is in a position to offer this on a sustainable and ongoing fashion. Our staff is experienced and able to offer training and support and, through on-air and online, we are able to offer an easily accessible platform to engage the wider community with the content. One audience segment we are working with closely is the 13 – 24 year old group who are big users and creators of digital media. The recent climate change movement, plastic awareness campaigns and Junior Tynwald are all examples of ways in which we have endeavoured to give a voice to this age group on Manx Radio. During 2019 and with our training and engagement with schools and colleges, we know there is much more we can do to work alongside them and that is at the very centre of our quarter 4 2019 plan. We have engaged with the Education Department on these issues as well as engaging directly with the team behind Junior Tynwald. In the longer term, there could be a potential to partner with the Department of Education, Sport and Culture to develop accredited courses. Perhaps these could also be sponsored by interested parties who could offer apprenticeships. There are precedents for this in the UK with things like the Bauer Academy and BFBS’ ‘Forces Media Academy’. Following meetings with various Ministers, the programming team has taken onboard Tynwald’s desire to increase inter-generational dialogue. We are developing a new strand of content where young and old will be the presenter/interviewer, talking to each other about elements of their lives and thoughts. We believe, with the right treatment, it will make a fascinating ongoing series of radio, podcast and video blogs. Groups like Southern Befrienders will provide an ideal starting point for this project. It also offers an opportunity for closer communication and understanding between the generations who can, through a lack of contact and social media message re-enforcement, have a basic lack of understanding of each other. Following meetings with a number of Ministers, Manx Radio is sure that it can help reach out and connect the Manx Diaspora across the world through both our live online output and podcasts. We are investigating ways in which we can best do this using modern technology as the bridge. All in all, we are confident that, once a sustainable ongoing funding structure is in place, Manx Radio is in a unique position to work with the IoM Government and other bodies to provide a conduit to connect the Manx population wherever they are to be found. Manx Radio wants to put itself front and centre in good times and bad as a focussed, quality station. Manx Radio plans to be the ‘glue’ which helps bind the community tgether. Public Media is about more than just economic profit, it is about social national profit.

SOME LEGACY ISSUES SURROUNDING MANX RADIO

4 SOME LEGACY ISSUES SURROUNDING MANX RADIO

BROADCASTING HOUSE Manx Radio’s studio and office location at Broadcasting House (BH) on Douglas Head have been the station’s home for a number of years. It is the position of the board that, should a more suitable central location offering easier access to the public, with enough space to house all the functions of a public service broadcaster and which would solve the long-running parking issues at Douglas Head be found, it would be welcome. A substantial outlay from Government’s capital programme has been made at BH over the years to make it fit for purpose for a full schedule of locally produced (as opposed to being supplied from off Island), programmes, news, features and so on. If the decision is made to relocate Manx Radio from Broadcasting House, the cost would depend on the actual location of the new premises and what infrastructure may need to be put in place before the actual studio construction can begin. If we take the 2007 minimum cost of relocation and allow for improvements in technology and inflation, then we are probably looking at a figure of approximately £2.7 million to fund the project excluding land purchase. This figure was derived from costing provided by the quantity surveyor and architect from the project team at the time. It should also be borne in mind that in order to ensure continuity of service (keeping Manx Radio running during any move), very little of the existing Broadcasting House infrastructure could be moved to another location. Essentially it would be necessary to have to build the new facility, get it operational then walk away from BH with little disposal value in the part-used equipment being left behind. Such a move is more easily justified if the infrastructure being discarded was due for replacement which it is not. Beyond the cost of physically moving the radio station and the entire associated infrastructure, there would also be a need to move the TETRA emergency services equipment and transmission tower (which belongs to the Department for Home Affairs) from BH before the site could be made available for any future redevelopment. The DHA would have to look to relocate the Emergency Services TETRA tower, whilst keeping it somewhere in the near vicinity of Douglas Head for coverage of lower Douglas. The DHA estimated the cost of such a move at about £400,000 to set up a new site. Once a decision is made on the future final location for Manx Radio, we can collectively (with Government), move to a resolution of the issue. Significant work has been carried out over the past few years to develop the BH site to make it into a more workable space for both Manx Radio and the BBC, whose journalist team is based within. If the decision is that Manx Radio is to remain at the BH site, then we would need to complete the improvement works in order to both future proof the location and to finally solve the disability access issues. The BH site was already in breach of Stage 3 of the Disability Discrimination Act (DDA) due to the lack of accessibility for those with restricted movement. In 2020, Phase 2 of the Equality Act will be enacted with stricter impositions. If we remain at BH and go ahead with the extension, which includes the installation of a lift, we would be properly compliant with the law. Progress with the final stage of this development has been suspended by The Treasury due to the lack of a final and binding decision on the location of Manx Radio. The Planning Permission for the building works is already in place (expires Sep 2020). The funding is currently a Column 3 expenditure (£969,000) item in the Treasury 2019/20 Budget, which would need Tynwald’s approval. This would be a significantly lower cost than that required to relocate Manx Radio to any other location.

5 The sale of Broadcasting House following the most recent estimate, would bring in approximately one-third of the cost of the move (inc the TETRA relocation) still leaving a significant level of funding (approx £2 million) to be found to cover the shortfall. RECOMMENDATION The management of Manx Radio considers that the cost of relocating the station would not be the best use of public funds. We therefore recommend that Manx Radio remains at Broadcasting House.

DIGITAL RADIO - DAB Traditional (linear – live and as it is broadcast), radio is still very much the backbone of Manx Radio’s output. Our latest audience survey results show that Manx Radio has a monthly reach of 60% of adults over the age of 15 across the Island (RAJAR Q2 2019). Traditional ‘broadcast’ radio survived the introduction of TV and the internet and continues to more than hold its own in an age of Netflix, Amazon Prime, YouTube and other on-demand services. Whether those live shows are heard on a traditional FM or AM platforms, via a smart speaker, mobile device or laptops, the simple fact is that people across the Island and the world generally are staying loyal to radio. DAB offers superior audio quality to AM and is broadly comparable to FM. Due to so many broadcast channels using the FM band, very few frequency channels are left available in the British Isles. This frequency allocation is managed centrally by Ofcom under the auspices of the International Telecommunications Union (ITU). Traditional AM listening on the Isle of Man, as elsewhere, has been declining over the years, mainly due to the inferior audio quality. An example of the AM switch off, the BBC began a shutdown of its local radio AM services at the end of 2014, with BBC Radio’s Lancashire, Surrey, Sussex and Wiltshire among the first to go. There is also a mid-term plan by Ofcom, lead by UK Government, to close down the FM broadcast spectrum in the UK and Europe. All new vehicles sold in the UK now come fitted with DAB radio receivers as standard. At the same time, sourcing a new receiver with AM is becoming increasingly difficult and more expensive. A secondary output channel is vital if Manx Radio is to fully fulfil its Public Service Broadcasting remit by offering full and extensive coverage of Tynwald proceedings, the TT and so on. To put this in some overall context, UK DAB listening is about the same size as all listening on FM and continues to grow. DAB accounts for 40% of radio listening compared to online/apps at 11% (RAJAR Q1 2019). There is a process currently underway in the Channel Islands to open up a digital multiplex to allow DAB broadcasts there for local and commercial radio by early 2020. The Second Report of the Select Committee on Public Service Media, recommended in 2018 (Recommendation 2), that Manx Radio should ‘leapfrog’ DAB in favour of online solutions. However, as was demonstrated again at 2019’s TT, the live streaming option can not be considered a one-stop solution due to the lack of reliable 3G/4G/5G signals across much of the Island coupled with the unavoidable but often significant latency delay. At times of peak demand, such as the TT or civil emergency, mobile cell contention can lead to increased audio delay, dropouts or complete of loss of the audio stream. The fact is that DAB listening is completely free at the point of use which is an internationally accepted fundamental principle of Public Service Broadcasting. During TT 2019, a number of visitors asked the Manx Radio team if commentary was available on the DAB receivers they had with them.

6 With this in mind, Manx Radio sees DAB as part of its future vision and is working with the Communications Commission to trial a small-scale DAB (Digital Radio) service, initially for the Douglas area, in order to see if it is feasible. Any DAB trial would be commercially funded, outside of the subvention. There would also be opportunities for other Island stations to be available on this DAB service trial. During any trial period, we will monitor and capture DAB listenership and interaction. If this DAB trial is deemed a success, we would wish to engage with all parties from the audience, with Tynwald and the Communications Commission to seek a sustainable DAB service, outside that already offered by the BBC, to eliminate the not inconsiderable costs of the AM service. The cost of this Island wide DAB network is not accounted for in this report. Is it worth mentioning that DAB offers the opportunity for more access to the airwaves. Not just for other stations but also, through Manx Radio, for experimental 'pop-up' brands involving educational establishments and organisations. DAB+ is becoming the norm in the UK and opens up the bandwidth for even more stations and services.

FUNDING In its current structure, Manx Radio is funded via two strands. One is purely commercial (advertising and sponsorship), the other is via the Government Public Service Broadcasting Subvention. The Public Service Broadcasting Subvention of £875,000 for 2018/19 financed 37% of our operating costs. The subvention for 2019/20 stands at £899,830 per annum (£875,000 plus £24,830 inflation uplift). Two years ago the subvention financed 42% of operating costs. The remainder came from commercial activities. In the last 16 years, the sales income from commercial advertising and sponsorship for Manx Radio has averaged £944,281 per annum. The Island has a small and sea locked advertising eco system, which can be distorted to the positive by a new business setting up operations here. Generally, the Island’s marketing spend is from small to medium size businesses (SMEs) and a handful of larger enterprises. As the subvention is fixed, the slightest change in the commercial sector income can have dramatic results for the station in terms of financial sustainability. With the rights to future TT events still in the balance, for the purpose of this report we’ve included the costs and income on a like-for-like basis for providing full radio coverage of the event. New arrangements for TT radio in 2019 meant that we entered into a ‘technical facilities contract’ to cover the infrastructure and output. Under this arrangement we were unable to exploit the commercial revenue (advertising) opportunities previously available. SUBVENTION The annual subvention payment helps underwrite the public service media aspects of Manx Radio’s offering. Over the past few years, we have made substantial efficiency savings across the station and this is an ongoing process to ensure that we are not profligate but are delivering what the community wants from its public service media provider. Without the subvention, it would be impossible to provide sustainable Public Service Broadcasting. News, community, specialist, arts and Manx language programmes are a few of the areas which are

7 not commercially viable but which form the bedrock of a PSB offering. If they could be produced on a sustainable basis or as a commercial revenue generating opportunity, then others would already be doing so. However, the unpredictable commercial revenue streams, as detailed above, impact directly on our ability to plan ahead both financially and from a content delivery aspect. Currently, the annual subvention contribution for Manx Radio’s public service broadcasting remit does not automatically carry an index-linked uplift. For the past four years up to 1 April 2019, it has remained static with no CPI increase and, over the course of time this has had a cumulative effect on the funding and functioning of the station. By comparison BBC local radio had a 4.7% increase in funding in the most recent figures published (16/17 - £112.9 Million, 17/18 - £118.2 Million). The average cost of a BBC local radio station in the year 2017/18 was £2.95 million. In comparison, Manx Radio’s publically funded contribution has remained static for a number of years. In the meantime, as with everything else, the costs and overheads rise annually. As an example, rates have increased by 3.40% (16/17), 3.14% (17/18), 1.77% (18/19) and 6.24% (19/20). The staff salary cost at Manx Radio for the year 19/20 is £926,978. The 3.7% increase in NI contributions means an increase of £34,298. Recently, Manx Radio has modernised some of its infrastructure in order to be greener and reduce costs. The issue of subvention has been raised numerous times, going back as far as the Darwin Report of 2002 and the more recent Myers Report of 2013. A lack of index-linking of the annual subvention means that forward planning and budgeting by the management team, becomes much more difficult. Manx Radio’s licence to broadcast (issued by the Communications Commission) has a validity period of 10 years. If there was a guarantee of funding with index-linking for a 3-5 year period, planning, budgeting and other financial matters would become a more stable and predictable science. This would also enable Manx Radio to renegotiate contracts with our various suppliers to help drive down costs. The following is a five-year costing of Manx Radio with all the predicted PSB commitments (Tynwald coverage, election coverage lead up and full coverage online and on-air, Island Games in Guernsey and Anglesey, Commonwealth Games in Birmingham etc). The attached is a very simplified summation of a much more detailed business plan. In order to sustainably fund Manx Radio and all of its Public Service commitments, an increase in the level of subvention is required to compensate for the increasing gap between actual costs and commercial revenue. Had the findings of the Myers Report in 2013 been implemented, the annual subvention would be running at approximately £1.2 million from the start of financial year 2020/21 as predicted by the late John Myers. As has previously been stated, Public Service Broadcasting is not a low cost commitment, but it is a vital commitment in a functioning and open democracy. This level of subvention combined with the commercial revenue predictions will provide a solid and sustainable footing for the future.

8 Radio Manx Limited 5 Year Plan to 2025

Year Year Year Year Year - 20/21 - 20/21 - 22/23 - 23/24 - 24/25 Budget Budget Budget Budget Budget £ £ £ £ £

Turnover - Continuing Operations 1,468,656 1,532,023 1,581,443 1,607,560 1,636,570

Total Public Service Contribution 995,000 1,014,900 1,035,198 1,055,902 1,077,020 Total Income 2,463,656 2,546,923 2,616,641 2,663,462 2,713,590 Operating Expenses 2,451,831 2,545,338 2,576,149 2,632,551 2,684,726 Net Profit 11,825 1,585 40,492 30,911 28,864

Commentary on 5 year plan Commercial Sales income entered at £1.050m in 2020/21 then increases by CPI at 2%. Minor Capital Works continues at £150k per annum, with the depreciation element equalling the Deferred Income MCW. Amplify Projects included at £60k per annum plus inflation. Engineering income has been included at a level assuming Vodafone contract continues. Clarity is needed regarding Radio TT, provision of Technical Facilities, and who delivers and accounts for Commercial Revenues which were ‘lost to the event’ in 2019. News Election costs have been budgeted in 2021/22. The Island and Commonwealth Games sports coverage have been included in the relevant years. Salary inflation has been provided at 2% per annum.

RECOMMENDATION An increase in the basic public service subvention from £899,830 to a level of £995,000 plus CPI commencing 1st April 2020. This reflects our plans, detailed in this report, to increase audience engagement and involvement and the improved output across all platforms. Previously budgets have been cut which has had an adverse effect on output. This level of subvention combined with the commercial revenue predictions will provide a solid and sustainable footing for the future.

9 BBC CONTRIBUTION We await the outcome of the meeting between Minister Chris Thomas and the BBC later this year. As per Tynwald’s decision, Manx Radio has played no part thus far in these negotiations. There may or may not be a financial gain to the Island from these negotiations, but, if not, we would suggest that it would be useful at that point for Manx Radio to engage with Tynwald to approach the BBC to see if we can negotiate some better working practices through increased use of General News Service (GNS) facilities etc. We have also spoken with a number of MHKs regarding a proposal to work with the BBC and Government to deliver a potential local TV opt-out if BBC funding were to be available. Again, this is dependent on the outcome of meetings between Tynwald and the BBC.

OTHER FUNDING OPTIONS In early 2019, Norway decided to follow a number of countries (Iceland, Sweden and Finland), in moving away from a licence fee to a taxation/rates system for public service broadcasting (https://www.nordicom.gu.se/en/latest/news/nordics-replace-licence-fee-public-service-tax ). Other countries (noticeably Germany), operate a similar system in order to adequately fund their public service media in an arm’s length and independent but sustainable fashion. If Tynwald were to adopt the Nordic model and add a sum to all the household rates in the Island, this could provide an alternative method of funding. The Island’s Total Survey Area (TSA – residents aged 15 or over) is currently reported as 69,900 so with our current subvention everyone is paying circa £13 per annum. According to the 2016 census on the Island there are 35,763 households here, so to ‘create’ a £1,000,000 subvention between 35,763 households equates to £28 per household or around 54 pence per week per household. If it were decided to make Manx Radio free from commercial advertising, an index-linked rate of £66 per household would be required to cover the commercial shortfall. This would free the commercial revenue currently spent with Manx Radio to be made available to the remaining stations and newspapers on the Island. Of course, it could be argued that Manx Radio offers a unique advertising opportunity to many island businesses who wish to reach a certain section of the population not served by either 3FM or Energy.

10 NEW STRUCTURE

OWNERSHIP The current ownership of Manx Radio by Treasury leads to an understandable conflict in Treasury’s role as shareholder of a commercial entity seeking support, moral and financial, to fulfil its public service remit, and deliver services in new and increasingly innovative ways that requires capital expenditure; and the job of The Treasury, to allocate spending when the resources are available. This creates inevitable tensions between the role of the Manx Radio board and the role of its shareholder. This situation may still present itself, to a greater or lesser extent, even with ownership by another Government department. It is therefore proposed to place an intermediate ownership vehicle between Government (possibly still Treasury, but other Departments or Government bodies could be considered) and the operating company, thus allowing the executive directors to focus on delivery of their public service broadcasting obligations, leaving interaction between Government and the intermediate vehicle to the management body of the new vehicle. We are suggesting that a standard Trust structure be utilised as the intermediate ownership vehicle. The Trustees would hold the shares of Radio Manx Limited for the benefit of The Treasury (or other Government body as defined above). The Trustees’ obligations, as set out by the Trust Deed would be to ensure that the radio station complied with the terms of the licence issued by the Communications Commission, and other statutory obligations required by law. They would negotiate with Treasury for a multi-year operational funding arrangement which would allow the executive board to plan and budget for the delivery of services on a standard commercial two to three year basis, rather than having to prepare a budget in October of each year and not find out what the approved funding for the upcoming financial year is to be until mid-February. Separate discussions regarding capital project needs would be held between the Trustees and Treasury on an ad hoc basis. The Trustees would also be responsible for holding the executive board to account for the quality of output from the station and meeting the needs and expectations of the Manx public from their public service broadcaster. This process would need to be free of political membership in order to maintain its ‘arms length’ impartiality. It is envisaged that the initial Trustees would be the current Chairman and other Non-Executive Directors of the Company with such additional Trustees as may be approved by Treasury (or other Government body) from time to time.

RECOMMENDATION That the current non-executive Directors of Radio Manx Limited, together with Treasury and the Attorney-General’s Chambers meet to agree the wording of a Trust Deed that would transfer ownership of the Company to the Trustees, for them to hold on Trust for the Treasury (and hence the wider Manx public) in order to ensure delivery of the terms of the licence issued by the Communications Commission and other statutory obligations encompassing the delivery of quality public service broadcasting.

11 EXECUTIVE SUMMARY

1) We will introduce regular advisory meetings in locations all over the Island, with an open invitation to the community to join us to raise issues and concerns regarding the entire range of Manx Radio functions. We also propose to investigate the opportunity to establish a ‘Listener Panel’ to report back to the management or trustees on a quarterly basis from these meetings.

2) Increased access to Manx Radio staff experience and infrastructure to help train and guide the Manx community to make Podcasts and video content to be hosted by Manx Radio.

3) More training opportunities for schools, colleges and the wider Manx community. New programming strands to encourage inter-generational engagement. There is a potential long term opportunity to partner with the Department of Education, Sport and Culture to develop accredited courses.

4) The management of Manx Radio considers that the cost of relocating the station would not be the best use of public funds. We therefore recommend that Manx Radio remains at Broadcasting House.

5) Manx Radio sees DAB as part of its future vision and is working with the Communications Commission to trial a small-scale DAB (Digital Radio) service, initially for the Douglas area, in order to see if is feasible. Any DAB trial would be commercially funded, outside of the subvention. There would also be opportunities for other Island stations to be available on this DAB service as well as ‘pop-up’ services

6) An increase in the basic public service subvention from £899,830 to a level of £995,000 plus CPI commencing 1st April 2020. This will enable us to increase audience engagement and involvement as well as improving the overall quality of our cross-platform services. Previously budgets have been cut which has had an adverse effect on output. This level of subvention combined with the commercial revenue predictions will provide a solid and sustainable footing for the future.

7) That the current non-executive Directors of Radio Manx Limited , together with Treasury and the Attorney-General’s Chambers meet to agree the wording of a Trust Deed that would transfer ownership of the Company to the Trustees, for them to hold on Trust for the Treasury (and hence the wider Manx public) in order to ensure delivery of the terms of the licence issued by the Communications Commission and other statutory obligations encompassing the delivery of quality public service broadcasting.