Economic Development Minister Laurence Skelly says exploring the idea of a TT World Series has so far cost the taxpayer £188,000.

This morning in the House of Keys, he faced questions from North Douglas MHK John Houghton about how much the Sports Consultancy had been paid as it looks into the feasibility of the event.

Mr Skelly said he couldn’t reveal the results of the feasibility study because of commercial confidentiality, and said he couldn’t quantify exactly how much money it might raise for the government.

But he said with the TT on the Island almost as big as it can possibly get, it’s important to look for ways to expand it elsewhere:


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The Speaker: Question 6, Hon. Member for Douglas North, Mr Houghton.

Mr Houghton: Thank you, Mr Speaker.

I beg leave to ask the Question standing in my name.

The Speaker: Minister for Economic Development, Mr Skelly.

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

May I first of all thank the Hon. Member for this important Question about economic benefit 495 and opportunity for the Isle of Man.
With regard to the first part of the Question, including the fee for the original feasibility study, the total amount paid to the sports consultancy to date is £116,000. A further payment of £72,000 is now due.

Moving on to the second part of the Question, I am keen to give Hon. Members as much 500 information about this project as possible, but must do so in a way that protects the commercial interests of the Island. The feasibility study contains some commercially sensitive information which, if it were publicly disclosed, might adversely affect the procurement process for a commercial promoter, intended to take place in 2015.

As a result, publication of the study is not considered appropriate at this time. However, I 505 intend to organise a briefing for Hon. Members in order to explain the proposals of the TT World Series and its benefits to the Island shortly.

I will now address the third part of the Question regarding how the Isle of Man’s economy could benefit from TT World Series proposals. As Hon. Members are aware, the steps my Department has taken in recent years to enhance the TT and the Festival of Motorcycling have substantially improved the quality of events, the number of visitors, economic benefits and income to Government. For example, visitors to the TT increased from 31,000 in 2011 to 43,000 2014.

A World Series could build upon the success in several ways. Firstly, the current proposals seek to contract out delivery of TT branded events to an experienced and competent external 515 promoter. Such a promoter could be better placed to maximise the revenues from the TT and the TT brand worldwide, through their industry expertise and contacts.

This could raise additional income for Government, as it is proposed that Government will receive a share of profits made by the promoter and revenue from licensed and other commercial fees. The level of income would be dependent on the contract agreement with the 520 successful bidder and the commercial results achieved by the promoter over the term of the contract.

Secondly, contracting out the delivery of the TT to an external promoter will hand over its significant proportion of the current expenditure, resulting in savings to Government as well as helping achieve a smaller, simpler Government.

Thirdly, the promoter will have the incentive to invest in and develop the TT concept in ways the Department is not able to. This renewed investment in the TT will further enhance the profile of the event and the economic benefits to the Island.

Finally, the promoter working with my Department will take the TT concept and promote it in a number of locations, through the proposed World Series of events. At this stage, it is 530 anticipated the World Series could include events in the Middle East and the southern hemisphere. This will, over time, provide a unique platform to showcase the Island as a must-see visitor destination and attracting inward investment on a world stage.

Gura mie eu.

The Speaker: Supplementary, Mr Houghton.

Mr Houghton: Yes, thank you Mr Speaker.

Mr Speaker, I thank the Minister for his Answer, and I thank him for offering a briefing to Members – I think this is vitally important (Two Members: Hear, hear.) when it is getting close 540 to £200,000 worth of investment in this matter, is being mooted by the Department.

Can I just ask the Minister if he would state: in my records from the last question I asked on this, I was given a figure of almost £122,000 spent by May of this year, which he now reports as that being only to date of £116,000 – so that is £6,000 difference and with, as he states, a £72,000 additional payment now due.

If he could make comment on that – and I do stand corrected and I did record this figure way back in the last Question Time – if he could answer that please?

The Speaker: Mr Skelly.

The Minister: Gura mie eu.

I will come back to the Hon. Member with regard to the differential there. But what he is highlighting I think is that this is a significant investment – which I would agree is a significant investment. It does need to be professionally analysed and that is why we have conducted this feasibility study.

It has been ongoing for a considerable amount of time because there are so many stakeholders involved. And why this is a significant investment is because we believe it is a significant opportunity. We are reaching a point – and this has to be considered very clearly – with regard to the TT and the Festival of Motorcycling that we will have a plateau, and what we need to do is look at other opportunities to expand this very strong and positive global brand.

So that is why we are conducting this, as well as… and I will point out the Hon. Member from Douglas too, Mr Henderson, asked the Question last week in Tynwald, about a TT attraction. Both of these projects are equally important to the benefit and growth in terms of TT for the Isle of Man.

The Speaker: Mr Houghton.

Mr Houghton: Thank you, Mr Speaker.

Mr Speaker, can the Minister tell me, and advise this Hon. House, whether he actually has full confidence in this initiative at this stage?

The Speaker: Minister to reply.

The Minister: Gura mie eu.

My confidence at this stage is still reserved because we are still at the feasibility stage, and we are still in the process in terms of seeking a promoter. What I can say is, in terms of the stakeholders that we have engaged with, and everyone involved with the TT and the potential
destinations, the interest is very strong. What we need to do is to analyse that, and that is why once we have compiled all the information I will put a presentation together for Hon. Members to review the detail and to ask further questions.

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