Plans to launch a TT world series have been shelved - with Economic Development Minister Laurence Skelly MHK admitting it had always been a ‘high risk idea’.

Meanwhile, the search continues for a company to act as a ‘promoter partner’ for the Isle of Man TT and Classic TT, with the aim of making an appointment before the start of the 2016 TT next May.

The announcements have been made today (Friday) following the completion of a tender process undertaken by the Department of Economic Development to find a commercial promoter for the TT, Classic TT and an international TT series.

The idea for a world series was originally announced in 2011 by Geoff Corkish MHK, Department of Economic Development member with responsibility for tourism and motorsport.

Four years later, in November last year, Mr Skelly told the House of Keys that almost £200,000 had been paid to The Sports Consultancy, which was contracted to explore the feasibility of the idea.

And as recently as May, Mr Skelly was quizzed in the Keys by John Houghton MHK, who asked for ‘tangible evidence to show what has actually been done for all this cost’. ‘There does not appear to be anything,’ he said. ‘The whole scheme does not appear to be any further than its embryonic stage.’

In a statement released by the Department of Infrastructure today, Mr Skelly said:

‘[The TT world series] has always been a relative high risk idea – indeed, some people have voiced concerns that the series might fail or might dilute focus on the Isle of Man events, either of which could harm the TT and the island’s economy.

‘My department therefore considered very carefully the bids to see whether we could be confident we could deliver the proposed TT series while managing the risks. If we were a private business, then I think we may have been prepared to take the risks associated in pursuit of the substantial benefits offered in at least one of the bids.

‘However, government must be mindful of the importance of the TT to many other stakeholders including local businesses, so my department has applied a higher threshold of risk than say a private organisation would apply. We have therefore decided that the best way forward is to focus on growing the home events and making them more appealing.

‘In a few years we can then reconsider the TT series idea with a stronger proposition to take the global motorsport market.’

Addressing the issue of finding a promoter for the TT and Classic TT events, Mr Skelly said:

‘We must continue to seek new opportunities for growth – it is in that spirit that we entered into the procurement process this year to seek a private promoter with the right skills and resources to help us grow the TT and Classic TT as well as launch a new, ambitious international TT series.

‘My department has learned a great deal over the last year, both through this process and through the excellent growth we have continued to deliver in 2015. We were very fortunate that we received strong bids from several organisations.

‘As a result, I am more convinced than ever that we need a private promoter partner who can bring relevant expertise, commercial acumen and new ideas so that the TT and Classic TT can continue to grow. This is also consistent with our policy to deliver a smaller, simpler government.’

The press statement issued by the Department of Infrastructure included the following information with regard to the staging of motorcycle events. It read:

‘The Isle of Man Government spends over £5m annually to host the TT Races and Festival of Motorcycling and recoups a similar sum from the associated sponsorship and tax receipts. 

‘As a result, the island’s economy gains an annual boost of over £20m as well as invaluable international publicity. The department believes that a private promoter partner can help to continue to grow visitor numbers, media coverage and sponsorship, helping to deliver further economic growth and Government income.’

Stephen Parry

The Hon. Member for Douglas North (Mr Houghton) to ask the Minister for Economic Development:

In relation to the proposed TT World series; (i) how much has been expended by the Department to date; and (ii) what progress has been made so far?

The Speaker: Question 8, Hon. Member for Douglas North, Mr Houghton.

Mr Houghton: Thank you, Mr Speaker.

I beg leave to ask the Question to the Minister of Economic Development: in relation to the proposed TT World series, how much has been expended by the Department to date, and what progress has been made so far?

The Speaker: I call on the Minister, Mr Skelly to reply.

The Minister for Economic Development (Mr Skelly): Gura mie eu, Loayreyder.

I thank the Hon. Member for his very timely Question, as it gives an opportunity to explain the decision and of course the press release that was just issued last week.

So firstly, with regard to the first part of the Question, I can confirm that the total expenditure to date stands at £276,360. This expenditure covers all fees and expenses paid to the Sports Consultancy as well as the costs of advertising the tender process and producing brochures relating to it.

Much of this expenditure relates to the research into the TT Series concept dating back to 2010, which showed the idea had merit and warranted further work, hence earlier this year we commenced the procurement process to seek a private promoter with the right skills and resources to help us grow the TT and Classic TT, as well as launch a new, ambitious international TT Series.

With regard to the second part of the Question, in short, we have learned a great deal in the last year and much progress has been made. The Department considered the bids carefully, and were unanimous in our decisions. We do not think the time is right for the TT Series.

At the same time, we believe there remain great opportunities to grow the TT and the Classic TT by working with a private promoter partner with the right expertise, right commercial acumen, innovation and private investment. As a result, we believe we can deliver growth in both the local economy and Government revenues.

This is also consistent with Government policy to deliver a smaller, simpler Government.

Therefore, we will soon commence a new procurement process to find the right promoter partner to help us grow the TT and Classic TT. Government must be seen to be fair to all potential bidders, so given this is different in scope to the previous procurement process, it is necessary to commence a new process. We expect to be able to complete this process prior to TT 2016, which will enable us to maintain the momentum we have already built in our plans to date.

Loayreyder, I believe this is the right way forward to deliver best value to the taxpayer, grow our economy and respect the TT’s loyal fan base.

The Speaker: Supplementary question, Mr Houghton.

Mr Houghton: Thank you, Mr Speaker.

Well, if any body would want to believe that from the Department, they would need to go where we are all going – to oblivion. (Interjection)

Mr Speaker, how can the Department say they have learned lessons after wasting £276,000 850 on a complete non-starter, right at the beginning? Many people had advised the Minister of this, me included, through Questions in this Hon. House.

Why has he run it so far, to then say he is looking for another partner to move the TT forward? What on earth is his thinking in this, Mr Speaker?

The Speaker: Reply, sir.

The Minister: Gura mie eu, Loayreyder.

I can understand the Hon. Member’s point, this is an awful lot of money without a doubt.

This is an awful lot of money that was spent over a long period of time. A considerable amount of research, evidence and data has actually been collected, and the real question is, has this been a valuable exercise? I would contend that yes, this has been a valuable exercise and this has given us more evidence that – and in particular, whilst we are going to actually shelve the TT Series concept at this moment in time – we believe there are still significant growth opportunities in the local events, and we are now more convinced than ever that we must put this in a partner with a private promoter to actually effect that benefit going forward.

The Speaker: Hon. Member, Mrs Beecroft.

Mrs Beecroft: Could I ask the Minister to provide a breakdown of the £276,360, please, and maybe circulate that to all Members, because I am sure everybody would be interested in the breakdown of that figure.

And he refers to having now got a lot of data that will be useful. Could he confirm what that data is that he has collected/collated and what use it is going to be, how he is actually going to use that particular data going forward?

The Speaker: Reply, sir.

The Minister: Gura mie eu, Loayreyder.

Yes, I will see if we can gain the breakdown of that expense so as to share that with Members. It will be very helpful, I am sure, for all.

In terms of the information and data that has been collated, it started of course with the research, which was the feasibility study and in there, there was, I think, clear evidence, as when we continued to progress this, to actually test the market.

That is exactly what we have done, Hon. Members. We have really tested the market as to whether we can take this forward, and whilst we believe – and I just reiterate the points here – that a private promoter, working in partnership with Government, can actually grow our local economy. It was always going to be a high risk situation, but I do believe that we have gained some valuable information and what this does do, that information that we have gained allows us to move forward with a rapid procurement process, so do not lose momentum and we will be able to conclude this before TT 2016.

The Speaker: Hon. Member for Onchan, Mr Quirk.

Mr Quirk: Thank you, Mr Speaker.

Can I just ask the Minister – I think you have virtually answered it – but could I ask here, regarding the data you have already received and the tenders for that particular document, can I just seek reassurance, which I think you have already given actually, that we will have to go back to a re-tender exercise, costing us quite a lot of money, and for the local element we will be able to do that quite quickly.

The Speaker: Minister.

The Minister: Gura mie eu, Loayreyder.

Yes, I thank the Hon. Member for his question, and yes, we will have to do this in a fairly swift fashion, a much more refined process that will certainly have very minimal cost, because we have already conducted most of the work ahead of time.

Again, I think the information that we have acquired to date will help us to do that in a very swift fashion.

The Speaker: Final supplementary, Mr Houghton.

Mr Houghton: Thank you, Mr Speaker.

I have been appalled at the answers that the Minister has given today. There is £276,000 wasted on a non-starter.

Mr Speaker, could the Minister say what he thinks about how many hip operations would that have paid for; or in relation to the Treasury Minister’s reduction of the age-related tax allowance to a thousand pounds, does he realise that in the average payment that pensioners are now paying – £80 bills, by average – some more, very few less – that they were not paying before, that this amounts to 3,200 pensioners’ equivalent of money that has just been put down the sink (The Speaker: Hon. Member – ) that they have had to pay out of their pensions? It is totally unacceptable.

The Speaker: Hon. Member, your comments no doubt will be noted by the Minister but they are not questions.