TYNWALD COURT, TUESDAY, 17th NOVEMBER 2015

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

In relation to the shelved TT World series:

i) what additional money is due on unpaid invoices;
ii) what the additional sums are and for what purpose; and
iii) what the aggregate figure is of the overall costs?

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

Mr Houghton: Thank you, Madam President.

I beg leave to ask the Minister for Economic Development: in relation to the shelved TT World series, what additional money is due on unpaid invoices; what the additional sums are and for what purpose; and what the aggregate figure is of the overall costs?

The President: The Minister for Economic Development to reply.

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

I can confirm there are no outstanding invoices, as all invoices have been paid or processed for payment.

The total cost of the exercise, including the initial feasibility study, is £332,049. I think it is important that this figure is set in context. The TT and the Festival of Motorcycling generate substantial value to our economy and our international profile. It is essential that we are able to consider and pursue a range of opportunities to improve and grow these events, and that our achievements are then considered in aggregate.

The Department took responsibility for motorsport from the former Department of Tourism and Leisure in April 2010.

Since that time, the focus has been on improving the marketing of the events in order to maximise the benefit of the TT brand to the Island’s economy and therefore to the taxpayer. With the investment of modest sums each year the events have grown considerably.

The 2015 visitor surveys indicate that the following growth has been achieved. The total number of visitors for the two festivals has grown to 57,000 – a 42% increase. The contribution to national income has grown to £27.8 million, up by £10.7 million – a 63% increase. The exchequer benefit has grown to £5 million, up almost £2 million – a 62% increase. Therefore, for every pound spent on marketing we have generated over £12 for the taxpayer.

Such growth is the result of hard work and taking informed risks. For example, there were some who voiced concerns about TT Zero and the expansion of the Manx Grand Prix into the Festival of Motorcycling, and this has proven successful.

With regard to the TT Series, we knew there were risks with the concept, as well as very substantial potential benefits, so I still believe we were right to investigate the concept. It is important to note that we have not said the idea is dead; rather we are saying we believe we can deliver further growth to both the TT and Festival of Motorcycling for the immediate future and we will revisit the TT Series concept in years to come.

Our Department has learned a great deal over the last year through this TT process. There are definitely opportunities for further growth, but there are also real risks facing both the Department and the TT. As a result, we are convinced that we need a private promoter partner who can bring relevant expertise, commercial acumen, new ideas and investment so that the TT and Classic TT can continue to grow. This is also consistent with our policy to deliver a smaller, smarter Government. That is why we have commenced a new procurement process to a find the right partner focused upon growing these events.

Gura mie eu.

The President: Supplementary, Mr Houghton.

Mr Houghton: Thank you, Madam President.

Can the Minister account for the reasons why, in another place, he announced the total cost as £276,000 and now he has announced the total cost as some £330,000 – some £54,000 difference more? Can he explain that before I ask him another question, Madam President?

The President: The Minister to reply.

The Minister: Gura mie eu.

Obviously, what I wanted to do here was to give the answer, which the Hon. Member has been asking for for a considerable time, as to what is the total cost of the exercise. What we have done previously is that we have answered the question as asked – how much was paid to date – and that is exactly what was answered there.

Clearly, this figure here is a substantial sum; I would fully recognise that. I have also circulated a breakdown of costs, and I think that highlights not just the the consultancy cost but it also covers the legal cost. It also covers the work with regard to investing in intellectual property rights, design and promotional costs, travel and accommodation and also the third-party review cost. So that is the full cost of that exercise.

The President: Supplementary, Mr Houghton.

Mr Houghton: Thank you, Madam President.

Was the Minister aware of the further £54,000 bill – that was unpaid, then, from what he has just said – at the time when he informed this Court that the costs amounted to £276,000?

The President: Minister to reply. 

The Minister: Gura mie eu.

I was aware of the answer and verified the answer that I gave to this House, and I stand by that. We have answered that. We have answered it correctly and appropriately.

The President: The Hon. Member, Mr Karran.

Mr Karran: Can the Shirveishagh explain if I have got it right that we had consultancy costs of £299,850 on 15th November in another place as far as sports consultancy costs? Can he explain whether that is something that augments or overlaps any costs as far as this issue is concerned over the TT?

The President: Minister.

The Minister: Gura mie eu. 

I will be more than happy to recirculate that breakdown of those costs and incorporate these extra figures, which are obviously not part of that initial breakdown. So I will be happy to circulate that appropriately.

The President: Supplementary, Mr Houghton. 

Mr Houghton: My final supplementary, Madam President: in addition to the answer he has just given, if he can state the date that the further moneys were paid and the reasons why that was not made known to the other House when I asked that original Question.

The President: Minister.

The Minister: Gura mie eu.

I am more than happy to include the dates paid for those costs.

The President: Supplementary question, Mr Karran.

Mr Karran: Can the Shirveishagh, who I know is a very honourable person ... Will he look to see whether there are any overlaps as far as other consultancies, where they are not primarily for TT but have an effect as far as the TT is concerned, of sporting events on the Island, in order that there are not actually more costs involved as far as this whole sad affair is concerned?

The President: Answer.

The Minister: Gura mie eu. 

Yes, I take the point about overlaps and we have verified that that is the final amount paid for this exercise. I have already done that verification and I am happy to make that statement here.

The President: Did you wish to ask a supplementary, sir? No, okay.