JOBS at Greenlight TV may be at risk because the government did not give the company a contract to continue to provide TV coverage of the TT, said Douglas North MHK John Houghton.
He raised the issue in the House of Keys last week, asking Tourism and Leisure Minister Martyn Quayle to explain why the new TV contract was given to the London-based North One company rather than Manx company Greenlight TV.

In reply, Mr Quayle said the decision was made after a contract to provide TV coverage of the TT was put out to tender, a process that was accepted as a method by which the government could ensure that it was making the most of taxpayers' money.

'As part of the ongoing process to improve the commercial revenues generated by the Isle of Man TT Races, the department has reviewed all of the existing commercial contracts associated with the TT,' Mr Quayle told the House of Keys.

'Renewal of the TV contract was not an option as the previous extension terms under the contract had already been applied for the maximum term.

'The value of the contract meant that to comply with the government's financial regulations the new contract had to undergo competitive tender process.

'North One's tender stood out and was selected from a shortlist of four companies.'

Mr Quayle said he wanted to thank Greenlight TV for its contribution to promoting the TT but that the best tender was from North One.

He said that under confidentiality agreements it was not possible for him to release details of the North One contract or the rival bids.

But Mr Quayle added that North One was a world leader in sports coverage and the company offered the TT an opportunity to raise its profile even further.

The company's portfolio includes coverage of Formula 1 and the World Rally Championship.

He also said there was a possibility of North One opening a Manx base and creating jobs in the Island.

But Mr Houghton said that jobs may be at risk at Greenlight TV and that in the long term it could cost the taxpayer more money if jobs were to go than any possible benefits provided by the contract with North One.
The current television contract had been in place since 2001 but was due for renewal ahead of the 2009 TT races.

When the North One deal was announced in September, Mr Quayle said the company would 'revolutionise the television coverage of the TT' and would help to secure its long-term commercial future.

The television tender was the latest part of an ongoing programme of development for the TT that had seen new commercial contracts for sponsorship, merchandising and licensing, hospitality and marketing.

The event, which is run by ACU-Events Ltd, which took over from the Manx Motor Cycle Club, has UK firm Signature Sponsorship handling sponsorship, brands and corporate hospitality.

Public relations is handled by UK business Redpoint.

There has been much debate about many commercial aspects of the Isle of Man TT being taken away from Island businesses and given to overseas firms.

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Goverment should do more to support local firms

A DIRECTOR of Greenlight TV has criticised the government for awarding a TT contract to a UK firm at a time when the Isle of Man's economy faces an uncertain future.

Richard Nichols said he didn't want to appear guilty of sour grapes over losing the contract, but felt the government should be doing more to support home-grown businesses.

He said it was especially important to protect jobs when there was uncertainty over the future of the Island's finance industry.

'Greenlight TV is a manufacturing industry which employs 25 people in the Isle of Man,' he said.

'I think it's wrong to award manufacturing jobs of any kind to off-Island companies.

'Greenlight pays an awful lot in tax and VAT and brings millions of pounds into the Isle of Man every year.

'The government argues that the North One contract offers a better deal for the taxpayer, but the government needs to see the bigger picture.'

Mr Nichols, who was speaking in response to a debate in the House of Keys about the contract being awarded to the London-based North One production company, said he was not just concerned about Greenlight TV but other firms in the Island who had seen government contracts awarded to off-Island firms.

'The TT is by no means the only thing we do, but as an Isle of Man company we were extremely proud to provide coverage of the TT,' added Mr Nichols.

'We were very surprised to lose the TT, we have pitched against North One on several occasions and always beaten them on price.

'Everyone at Greenlight TV lives in the Isle of Man, we don't have to pay for travel and hotel expenses, so it is very difficult to understand how a company based in the UK could be cheaper than us.

'Our proposal guaranteed the government a substantial sum of money running into hundreds of thousands of pounds over the period of the contract.

'We have always purchased the TT rights from the government, paid for the television coverage of the TT ourselves and then split the profit with the government.

'The contract with the government forbids us from disclosing what those numbers are.'

He added: 'The situation now (with North One] is that the government is going to pay for the television coverage and hope that enough money comes in to cover that.

'We have no one whose job is specifically dependent on the TT, but we were advertising for two new posts and as a result of losing the TT contract we will not now be able to take on those people.

'So two jobs have gone already.'

He said that while the company was disappointed to lose the TT contract he hoped it would not jeopardise the long-term future of the business.
Greenlight is the biggest producer of motorsport coverage in Britain and one of Europe's major motorsport producers.

The TT represented around 10 per cent of the company's total business.
He said Greenlight had its busiest year in 2008.

During the TT fortnight the company employed 70 people, mostly from the Isle of Man.

Responding to Tourism and Leisure Minister Martyn Quayle's suggestion that North One may open an Isle of Man base, Mr Nichols said it was highly unlikely that North One would employ as many Manx workers as Greenlight TV did.

Mr Nichols said he could not disclose the amount bid by his company to cover the TT in 2009 and beyond.

But he said that he would be happy to disclose details of the previous contracts if the government lifted the confidentiality clause.

WHAT DO YOU THINK?
Send your comments to newsviews@newsiom.co.im

YOUR COMMENTS

TO THE POLITICIANS, "WHAT ABOUT LOYALTY BY THIS COMPANY" HOW MUCH DID THEY PUT ON THAT IN THE TENDER PROCESS.
RR


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