Manx Radio is not competing for advertising on a level playing field, a Tynwald committee heard.

And Chief Minister Howard Quayle said personally speaking he would have no objection to the BBC taking over the nation’s radio station.

Witnesses were giving evidence to the committee investigating the future and funding of public service broadcasting.

Ron Berry of 3FM and Energy FM founder Juan Turner both argued that the current model, in which Manx Radio receives a government subsidy - which increased from £875,000 to £955,000 this year - but competes for commercial advertising revenue, was ’unfair’.

Mr Berry said 3FM was only perceived as competition for advertising and this had nothing to do with public service broadcasting.

Mr Berry was asked if he had lost advertisers to Manx Radio. ’Yes absolutely,’ he replied.

He said, with ’great reluctance’ as he didn’t want a ’slanging match’ with Manx Radio, that he could quote evidence from a client who was offered a full package by Manx Radio of 80 30-second commercials every month, a quarterly campaign ’booster’ of commercials of an additional 80 30-second commercials, including production of four commercials, on-air promotion and 10,000 monthly display adverts on their website.

This had a minimum value of £34,000 but was being offered for £6,708. ’That’s 1,280 commercials that works out at £5.24 a spot,’ he said.

’We can’t compete with that as a business. So we have to sell our products in a different way,’ he said. ’It’s unfair, it is not a level playing field.’

Committee member Juan Watterson asked if there is a suspicion that Manx Radio was providing advertising at close or even below cost?’

Mr Berry replied: ’Suspicion?! I would think it’s quite evident.’

Mr Berry came up with a discussion document in 2012 that proposed a public private sector partnership between 3FM, Energy FM and Manx Radio.

He said he was not surprised his idea was not pursued. He said he was reluctant to put something forward to the committee because ’quite frankly nothing happened last time and I don’t think anything will happen this time’.

Committee member Tim Crookall asked if Manx Radio needed to spend money on internet and multi-media.

’Personally, no,’ he replied. ’I don’t think it’s necessary. I don’t think it’s fair to receive money for it when you are competing with other companies that provide the service. I think it’s not a very level playing field.’

Mr Berry said it was up to the committee to decide what public services broadcasting should mean and how much they would be willing to pay for it.

He said there was no point asking the BBC for more money. ’You are not going to get anywhere,’ he suggested.

Mr Turner, who is director of I-Tel which owns and operates the transmitter network that broadcasts Energy FM, agreed there was a lack of a level playing field and suggested: ’We are in danger of reinventing the wheel.’

He said: ’My view is we should be talking to the BBC over taking over Manx Radio. That would solve a lot of problems. First of all we wouldn’t have to fund it anyway. Investment in technology would come from the centre.’

millions

He said a successful model already exists in the Channel Islands where the BBC has operated since 1982 with Radio Jersey and Radio Guernsey. ’Were they funded by the taxpayers in the Channel Islands? No it wasn’t. Yet we’ve paid million and millions to Manx Radio over the years.’

’The reason the BBC never came here in the first place is because Manx Radio was set up in the 1960s. The taxpayer pays for public service broadcasting and also pays the licence fee,’ he said.

Mr Turner said Manx Radio had been branching out into other areas, like social media, that aren’t core to what they were supposed to be doing.

And he pointed out that the station doesn’t pay for any of its own transmitters - yet gets paid to look after them.

Giving evidence to the committee later that day, Chief Minister Howard Quayle announced that agreement had been reached with the BBC to fund the cost of TV licence fees for the over-75s.

Contributions will be paid on a phased basis with a commitment by the BBC to meet the full amount from 2020-2021.

He said this had been a CoMin priority and he was pleased that matter had been brought to a successful conclusion.

Mr Quayle said he had always supported the concept of a publicly-funded radio station but there had to be value for money. ’There’s nearly £1m of taxpayers’ money.

’You have to ensure that’s value for money,’ he said.

Committee member Mr Watterson asked what his view would be if the BBC came in and took over Manx Radio. ’That wouldn’t be something that would cause you great objection?’

Mr Quayle replied that was hypothetical and he would like to see what the BBC would have to say about that.

But, stressing that he was speaking personally and not as Chief Minister, he added: ’If someone walked in and took over the payment and called it BBC Isle of Man, then if that was going to save the taxpayers a considerable amount of money then as long as the detail was correct and properly thought through, I personally could acquiesce to that.’

Mr Watterson questioned whether there was a conflict with Treasury being sole shareholder and being in charge of the subvention - and whether that could impact on the station’s independence. ’He who pays the piper called the tune,’ he suggested.

value for money

Mr Quayle said it was only right that if the people of the island were paying £1m to the radio station that Treasury should be there to ensure there’s value for money.

Treasury Minister Alfred Cannan had been due to give evidence on Monday but the hearing was postponed due to unforeseen circumstances.

He has previously said his department couldn’t support Manx Radio’s expansion plans for Broadcasting House until it had a clearer picture of the station’s plans for the future.