The treasury minister has told Tynwald Manx Radio was awarded broadcast commentary rights for TT because it is the only station able to do so without interrupting its existing service.
Eddie Teare was asked by Onchan MHK Peter Karran why there was no competitive tender for the rights, long after a three-year contract awarded to the national broadcaster had run out.
The Department of Economic Development was granted an official FD 8 waiver, which allows government to obtain goods and services in some circumstances without a tender process.
Mr Karran described Manx Radio's contract with DED to run Radio TT as a 'back door subsidy'.
Mr Teare rejected that and explained why the work had not gone out to tender: