A clash between Treasury and Manx Radio directors over funding for the station was revealed during a hearing of the Tynwald committee investigating public service broadcasting.

Treasury Minister Alfred Cannan said there was a ’disconnect’ and a ’sense of frustration’ between his department and the board of the national broadcaster.

He told the committee: ’We are clashing to some extent in that Treasury wants to find new ways to delivery services and I think we have a board who see their absolute duty to protect Manx Radio rather than perhaps find new initiatives that may be possible to deliver their services in a changing and modern world.’

The Minister told the committee that Treasury had received a submission from Manx Radio for extra revenue funding of £200,000 - on top of its £875,000 taxpayer-funded subvention.

And he said Treasury had also been shocked by a bid from Manx Radio for an extra £250,000 to provide TT coverage. The bid was rejected by Council of Ministers who settled on a figure of about £100,000 - still double the £50,000 from the previous year.

Difference

Mr Cannan said the bid reflected the ’wide difference’ between what the radio station believes the level of investment should be and the level of value that Treasury would be looking to obtain.

He said Treasury supported a recommendation for TT radio coverage to go out to competitive tender as it was not convinced it was getting best value for money.

’While we are pushing other government departments hard, Manx Radio should not be immune to deliver on cost savings,’ he said.

He added: ’There is a sense of a disconnect in that one side wants to spend more money and the other side doesn’t want to spent more money. There is a sense of frustration at the moment.’

Mr Cannan referred to a letter he sent to the station’s chairman in October last year in which he wrote: ’In contrast to the views of the directors the view of the Treasury is there may be radical ways in which delivery could be configured so that the station can operate more effectively at lower cost’.

The Treasury Minister told the committee there was a ’keen sense of frustration from our side’ that the broadcaster appeared unwilling to look at what alternative models could be pursued to help meet its budgetary requirements.

Referring to Radio TT, he pointed out that in the UK a lot of televised sport has gone from the national broadcaster to other commercial providers and arguably this had enhanced the coverage.

Mr Cannan said Treasury had delayed Manx Radio’s £969,000 capital plan to expand and develop Broadcasting House.

Committee member Juan Watterson asked if he thought the scheme was value for money.

The Minister replied: ’We at Treasury are keen to get more clarity over the future for the radio station and have tried to extract from the directors the plans they have to modernise the radio station.

’Since this select committee was established there’s been absolutely no reason for us to discuss with Manx Radio progressing that matter.’

Manx Radio’s subvention has been frozen at £875,000 for the last three years.

Mr Cannan said if he had bids for funding before him from the departments of Health and Social Care and Home Affairs for front line services then ’clearly’ a bid from the radio station would be the ’last priority’.

He accepted Treasury had made a ’slight error’ when Manx Radio’s initial revenue submission was put to one side, explaining this had been done because the cover sheet asking if additional funding was required had been marked ’*/a’ (not applicable).

Protection

Committee chairman Dr Alex Allinson asked whether Manx Radio deserved special protection as a public service broadcaster.

Mr Cannan replied that live broadcasting of Tynwald could easily be done via the internet rather than necessarily on the radio.

He pointed our there are other media outlets that do not require subvention.

’Technology is changing, he said, and the public would just as likely use Facebook, Twitter or other social media.

’Just to necessarily ringfence the radio station like that in a changing modern world and pouring everything into the facility - you have to argue whether Manx Radio is fulfilling that purpose as efficiently and effectively as it could be,’ he said.

Mr Cannan also revealed Treasury had requested Manx Radio stop the process of recruiting a successor to Anthony Pugh as managing director until the committee has reported back as it might impact on the need to have such a role.