ACUE TT contract didn't go out to tender, says Minister

Johnston questioned on agreement and racing insurance

ACU Events Ltd.'s (ACUE) contract to run the Isle of Man TT Races was not put out to tender, the Minister for Enterprise has said.

The comments are in written response to a Tynwald question on the subject from Douglas North MHK John Wanneburgh which also asked about the insurance status for the event.

Instead it's being stated the ACUE agreement was subject of an exemption requested by DfE and 'concurred to by the Treasury.'

Tim Johnston says this was applied for 'on the grounds that the department is content, after adequate research, that there is currently no other Auto Cycle Union affiliated club that has the knowledge or expertise to run an event around the TT course.'

He went to describe the economic value of the TT as 'materially significant and in the national interest.'

The current arrangement is what he describes as a 'tripartite' between the department, ACUE as first contractor and ACU as second contractor.

In his query, Mr Wannenburgh also asked how insurance for racing on the Snaefell Mountain Course is being guaranteed for the next ten years and whether, if an underwriter can't be found, the government will have to make any payments under the contract.

On this matter, Mr Johnston states insurance is to be obtained by ACU under the terms of the agreement and Master Licence and that under that licence the department can arrange its own cover if ACU's insurance rises by 25 per cent or more in any year.

Should DfE choose that option it can be actioned 'for any period the department considers necessary or can revert to the ACU obtaining insurances.'

If no underwriter can be found, the minister further comments, 'this may constitute a default and as such there would be no payments to be made under the agreement.'

When it came to the Manx Grand Prix, Mr Johnston clarified his department does not promote or organise the meeting but that an agreement was in place for this year with the Manx Motor Cycle Club for the provision of funding for the event.