H O U S E O F K E Y S P R O C E E D I N G S
ROLLING HANSARD EPK061211A RHB
MORNING SESSION: 10.00 a.m. – 11.52 a.m.
HOUSE OF KEYS, TUESDAY, 6th DECEMBER 2011
Motorsport photographers
Awarding of contracts
1.5. The Hon. Member for Ramsey (Mr Singer) to ask the Minister for Economic Development:
a) What contracts his Department has with photographers to photograph the TT and its associated events and other motorsport events;
b) whether these contracts have been awarded to Island-based photographers; and
c) whether the employees of off-Island photographers are required to have work permits?
The Speaker: Question 5, Hon. Member for Ramsey, Mr Singer.
Mr Singer: Thank you, Mr Speaker.
I beg leave to ask the Question standing in my name.
The Speaker: I call the Minister for Economic Development, the Hon. Member for Douglas West, Mr Shimmin.
The Minister for Economic Development (Mr Shimmin): Thank you, Mr Speaker.
My Department does not currently have any contracts with photographers to photograph the TT, its associated events or other motorsport events. Photographers and photographic agencies have been engaged by my Department from on- and off-Island, depending on the scale of the work to be undertaken, the location of the work and any specific distribution requirements.
In answer to question c), under the current Work Permit legislation, photographers who are part of a reporting process are not required to have Work Permits, subject to a maximum aggregate period of 30 days per annum.
The Speaker: Mr Singer.
Mr Singer: I thank the Minister for his Answer.
Can I ask him, as he says that sometimes they will use on-Island photographers and sometimes off-Island photographers, what sort of events would he say our local photographers cannot undertake that he has to go to an off-Island photographer?
The Speaker: Mr Shimmin.
The Minister: The best way I can answer this, Mr Speaker, is that the most recognised photographer who is engaged by the motorsport team is a gentleman called Mr Stephen Davison, who has his own agency and is used when we particularly want to use his work for promotional purposes, and/or we wish to access his distribution network. Influential publications such as Motorcycle News do have a preference for his type of work. Therefore, where possible, it will be on-Island.
However, I would advise that between 220 and 250 photographers are issued with press passes at the TT and around 70 at Manx Grand Prix.
To be issued a press pass, they have to have experience and letters from relevant editors and representatives, in order to get the message of how wonderful the Isle of Man is to a much wider audience. This is often better done by the contacts that these photographers can bring to the table, sir.
Motorsport Development Group
Membership; salaries; previous experience
1.6. The Hon. Member for Ramsey (Mr Singer) to ask the Minister for Economic Development:
a) Who serves on the Motorsport Development Group;
b) what their individual salaries are; and
c) what their former occupations were?
The Speaker: Question 6, again, Hon. Member for Ramsey, Mr Singer.
Mr Singer: Thank you, Mr Speaker.
I beg to ask the Question in my name.
The Speaker: Minister for Economic Development to reply.
The Minister for Economic Development (Mr Shimmin): Mr Speaker, there is nobody within my Department called the ‘motorsport development group’. However, I have answered on the basis that the Question refers to the DED Motorsport Section within the Tourism Division. This section was formed as a result of the motorsports policy agreed by Council of Ministers in September 2009.
Mr Speaker, although I am loath to give out individual civil servants’ names in a Question in this House, for clarity, because of uncertainty in this area, I am prepared to do so on this occasion. The seven staff employed in the section are Trevor Hussey, Paul Phillips, Sian Christian, Paul Moore, Sophie Lowney, Ed Swain and Bruce Baker. Within the team there is one SEO, three HEOs, two EOs and one AO equivalent. The salaries paid fall within the Civil Service pay spines for the applicable grades which are published at annex C1 of the Isle of Man Civil Service Regulations.
With regard to part c), the former occupations before appointment to the current posts were Trevor Hussey, civil servant; Paul Phillips, IT support finance sector; Sian Christian, civil servant; Paul Moore, civil servant; Sophie Lowney, civil servant; Ed Swain, civil servant; Bruce Baker, technician in the oil and gas industry.
The Speaker: Mr Singer.
Mr Singer: I thank the Minister for his Answer, which was a little vague, I think, but can he tell me, of these people, how many in fact have had experience of organising major sporting events, prior to their appointments?
The Speaker: Mr Shimmin.
The Minister: Mr Speaker, I do not have that information available.
However, anybody who is an observer of motorsports in the last couple of years will have seen an enormous increase in improvement (Several Members: Hear, hear.) in the quality, performance, publicity, coverage, attendance, and an all-round professionalism which has been brought, in the main part, by this group of individuals who have been brought together for the skills they bring to the table, sir.
A Member: Hear, hear.
Motorsport Development Group
Staff and consultancy costs
1.7. The Hon. Member for Ramsey (Mr Singer) to ask the Minister for Economic Development:
a) How many people work in the Motorsport Development Group;
b) what the total cost is of employing them;
c) whether these employees work on a full-time or consultancy basis; and
d) why it was necessary to spend £57,000 on consultants to study a possible TT World Series?
The Speaker: Question 7, Hon. Member for Ramsey, Mr Singer.
Mr Singer: Thank you, Mr Speaker.
I beg leave to ask the Question standing in my name.
The Speaker: Again, I call Mr Shimmin to reply.
The Minister for Economic Development (Mr Shimmin): Mr Speaker, as explained in my previous Answer, my Answer is based on an assumption that the Question refers to my Department’s Motorsports Section.
The salary costs of the DED employees within the Motorsport Section is £249,244. Members of the DED Motorsport Section are employed full-time and are in permanent Civil Service posts, with the exception of Bruce Baker, who is employed on a part-time contract.
In addition to the DED posts, the Department of Home Affairs currently employs four people on a consultancy basis and is responsible for payments to these consultants. A report will shortly be submitted to the Council of Ministers, following consultation between my Department, the Department of Infrastructure and the Department of Home Affairs, setting out proposals for the future management of motorsport activities.
In answer to part (d), my Department is tasked with developing existing business opportunities and identifying new revenue streams. The TT World Series is a concept that is worthy of exploration but this is a complex area and requires expert research and advice. Whilst we acknowledge we have a great deal of inhouse experience of promoting the domestic event, an international event, and the commercial opportunities and challenges, is an entirely different matter. It will involve consideration of complex legal contracts within a number of different jurisdictions, in order to provide opportunities for participating organisations to benefit commercially, whilst protecting the TT branded assets of the Island and our own commercial interests. These contracts could involve issues such as circuit preparation, television rights, circuit advertising, transport, team incentives, prize money and other commercial opportunities.
The Department, in consultation with the Motorsport Section, concluded that this was not a piece of work that could confidently be taken on in-house. The appointment of The Sports Consultancy was made following a competitive tendering exercise overseen by the Treasury. They offered a competitive tender for the work and were able to demonstrate significant experience in the assessment and organisation of high-value sporting events on the international stage, including the complex legal and commercial issues that arise. We believe they are the right people to do this work on our behalf. They have been contracted to produce a feasibility study only.
Decisions about the progression of a TT World Series will be made by the Department, following the submission of the consultant’s report. There will be an expectation that the decision we make about any possible future investment in a TT World Series is made after careful consideration of the potential benefits, based on a thorough and independent analysis. The appointment of The Sports Consultancy will ensure that we meet that expectation.
The Speaker: Mr Singer.
Mr Singer: Can I thank the Minister for that detailed answer.
Just one question: does the Minister accept that a TT World Series could, in fact, direct sponsorship from the TT itself and into the Series, should that concept ever go beyond the drawing board ?
The Speaker: Mr Shimmin.
The Minister: I am not prepared to speculate, Mr Speaker. We will look at the results of the report and make a decision based on the information.
The Speaker: Mr Hall.
Mr Hall: Thank you, Mr Speaker.
Would the Hon. Minister provide information to this Hon. House about the procurement timetable for the TT World Series consultancy, specifically: when and where the call of expressions of interest were made; when shortlisting took place; when and where the shortlist was published; where the tenders were submitted; and, when the tenders were evaluated and the successful tenderer was contracted?
The Speaker: Minister to reply.
The Minister: Yes, Mr Speaker.
The Speaker: Hon. Member for Michael, Mr Cannan.
Mr Cannan: Thank you, Mr Speaker.
Could I ask the Minister whether three phone calls, one to the BBC, one to ITV, and one to Sky would not simply have clarified whether a potential World Series was feasible, given that the success of any of these sorts of events is presumably based around the broadcast and television rights?
The Speaker: Minister to reply.
The Minister: No, Mr Speaker, I think that over-simplification of something which we are attempting do build the economy and on our biggest brand of the Isle of Man – would not be satisfied by such phone calls.
The phone calls would have to be explaining what the purpose, what the outcome, the deliverability and a whole range of measures which would make it a purely pointless conversation between an Island which had no idea where it wanted to go with the co-operation with such as those mentioned, which would have far more questions than we would be in a position to answer. I believe it would make the Isle of Man look foolish.
Members: Hear, hear.
The Speaker: Mr Hall.
Mr Hall: Thank you, Mr Speaker.
What precisely are the deliverables specified for the TT World Series consultancy contract, including the precise specification of any reports to be produced?
The Speaker: Reply, sir.
The Minister: Mr Speaker, as is quite normal within departmental areas, I have delegated this aspect to one of my colleagues, who is leading it on, so I do not have that information available.
If the Hon. Member wishes to pursue this line of enquiries, he is more than welcome to come to my Department. We have no reason to be embarrassed in any way, other than being keen to promote something positive for the Isle of Man economy. If it is to work, then I would hope the House would support us.
A Member: Hear, hear.
The Speaker: Mr Cannan.
Mr Cannan: Thank you, Mr Speaker.
Could I ask the Minister what track record The Sports Consultancy had in delivering such motor sports events?
The Speaker: Minister to reply.
The Minister: I do not have that information available. However, the tender process, which I have indicated I will be circulating, will provide information and if Hon. Members have a concern about this, please bring it to our attention. We do not have all the answers. We believe we are doing what we are tasked with doing, which is developing the economy and opportunities for the Isle of Man. I am unsure as to why so many Hon. Members seem to consider that an investment of this level is something which is anything other than a major step forward for the Isle of Man. It is attempting to exploit something which has been, particularly in recent years, a massive success, and I hope that everybody will start rallying behind that, sir.
TT brand rights
1.8. The Hon. Member for Douglas North (Mr Houghton) to ask the Minister for Economic Development:
Whether the contractor for film rights for the TT is North One (now in receivership); and, if so, what contractual rights North One has to the TT brand and how many unexpired years remain?
The Speaker: Question 8. Hon. Member for Douglas North, Mr Houghton.
Mr Houghton: Thank you, Mr Speaker.
I beg leave to ask the Question standing in my name, sir.
The Speaker: Again, Minister for Economic Development to reply.
The Minister for Economic Development (Mr Shimmin): Mr Speaker, firstly, I regret I must express my concern that Questions, which contain such significant inaccuracies are allowed to be asked in this House and thereby be open to comment in the public domain. Such comments can be damaging to firms engaged in commercial activities and accusations of receivership might result in a loss of confidence, both in any company concerned and the manner in which the Government seeks to develop contractual agreements.
I am pleased to confirm that the rights of the TT Races are very firmly held by my Department on behalf of the Isle of Man Government. They are not, and never have been, held by North One Television Ltd.
Therefore the question of unexpired years does not arise.
With regard to the statement that North One is now in receivership, I would like to again clarify the situation for the benefit of Members and the public. North One Television Ltd is not in receivership and continues to provide excellent coverage of the TT as part of the existing contract that continues until 2013.
North One Television has been a significant partner in generating additional economic benefit for the Isle of Man through its coverage and the highlights programme was watched by record audiences on ITV4 during the 2011 TT Festival.
I am pleased to announce that the company’s efforts have resulted in the TT coverage being shortlisted for the best sports programme category in the 2011 broadcast awards. In addition, a great deal of footage was supplied to the CinemaNX documentary TT 3-D Closer to the Edge, DVD sales of which were surpassed only by the latest Harry Potter film in the UK last week. In addition, the contract awarded to North One Television in relation to the generation of sponsorship income for the TT is similarly unaffected.
However, Mr Speaker, and in order to further clarify the situation, I would like to advise as follows. North One Television sold its sister company, North One Sport, which owned the rights to the World Rally Championship to Converse Sports Initiatives in February this year. It would appear from media reports that this company has encountered financial difficulties, but these are of no consequence to my Department.
There are no direct ownership links between North One Television and Converse Sports Initiatives or North One Sport.
Thank you, Mr Speaker.
The Speaker: Mr Houghton.
Mr Houghton: Thank you, Mr Speaker.
Can the Minister advise how long North One has been trading with the Department in this contractual arrangement?
Can he also advise that, in the third year of its trading with the Department, there was going to be a bumper year in the contract: what are the receipts received by the Department in the bumper year, namely this year, I understand?
The Speaker: Minister to reply.
The Minister: Mr Speaker, I have no knowledge of those details, but we will look at Hansard, take the question from the Hon. Member, and circulate it to all Members, sir.
Mr Houghton: Thank you.
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