Last week government announced its newest cost saving measure, it was cutting almost three quarters of a million dollars in monthly subsidies to select radio stations which had been reserved to air pro-government advertising and programming.

As expected the news has not been good for radio stations which were spoiled by a fat monthly check from GOB that came whether they worked for it or not. The biggest check went to RSV limited which is the parent company of Love FM and Estereo Amor, and RSV pocketed $16,500. A new contract for three more years was signed with RSV in February of last year which is why RSV owner Rene Villanueva said he was shocked last week when he heard gob planned to bail out. The word came last week from government's media affairs point man, Vaughan Gill, but Villanueva says this is all unofficial for him because he has yet to get anything official. But in an extended interview with Keith Swift, Villanueva defended what he calls a contract and not a subvention saying the money was well spent and well earned.

Rene Villanueva, Managing Director RSV Ltd
“Of course my reaction was well how can you do that? How can you terminate something that is valid which clearly states that you have to give me two months notice if you are not satisfied with my service. Now if you want to look at the services, we have no problem. We think that we provide services to the government of Belize far above and beyond $16,500 per month. And we are talking about two radio stations here, not one but two. The services provided let’s look at it: Love FM at all times must maintain a nationwide broadcasting system; Love FM maintains a nationwide broadcasting system.”

Keith Swift,
Sir some people would say that it was high time this happened. How can you expect taxpayers to pay, and the figure we got was $19,500 a month when you include More FM, how can you justify to taxpayers that $19,500 has to go to one media house? That’s almost $250,000 a year.

Rene Villanueva,
“It is obvious if you listen to the agreement that all these requirements value more than what government is spending. Government does not own a broadcasting system. This is a private limited liability company. It has over 40 employees and it employs professional and competent people. So if you want to look at it you can say the government really ‘di get whe.’”

“Whether its $16,500 or $19,000, that doesn’t play any role. If that were to move tomorrow, then we would have to find ways to supplement it but we would still go on and serve our people because that’s what its all about.”

Keith Swift,
And some people would say that $250,000 a year has helped Love FM and RSV expand to this big multimedia company and that somehow taxpayer dollars are being used to pay for this nice new building and the company’s expansion. Your response?

Rene Villanueva,
“So let me put it to you in another way: if I have an advertiser that advertises on Love FM or our company and say mister advertiser it is your dollar that you are using for me to air your message that is...this is a business Keith. This is a business and we run a business. We sell airtime and we sell broadcast services. And the government desires to purchase airtime and broadcast services from us so we sell the government that. We are not a government station. The government is paying for the right to come and say kindly air the Prime Minister’s message for me at 6:30 this morning. That is what they are paying for because other than that I can choose to air the Prime Minister’s statement at midnight.”

Keith Swift,
Don’t you think it was unfair that some stations were getting and some weren’t and that in effect created an unleveled playing field?

Rene Villanueva,
“That is my not prerogative. That is not my concern to answer. That is a question that the government has to answer. I am only concerned with what I do and with my contract because my contract is very specific and I have fulfilled all the obligations laid out here.”

Keith Swift,
Knowing that the 10th of every month you are going to get a check for $16,500, did you have a reason to as they say sing for your supper?

Rene Villanueva,
“But why would I have a reason to sing for my supper?”

Keith Swift,
Because you get a check at the 10th of every month. Did that in anyway slant you pro-government? And I am only asking.

Rene Villanueva,
“Well if you want to ask then allow me to answer.”

Keith Swift,
Well did it?

Rene Villanueva,
“Of course. If I have it in a contracted agreement like I have here, what do I have to worry about? You still have to send me this check because I am fulfilling my business agreement with you.”

“The bottomline is that we are serving our people and that is the strongest statement I can make: it is about serving our people, informing them, and informing them in an unbiased and professional manner.”

Keith Swift,
Should that cost taxpayers $19,000 a month?

Rene Villanueva,
“You answer that Keith. You will have to answer that. I won’t answer that for you. I am a businessman. I have an agreement with the government of Belize to provide services which I think are worth in excess of the figure you are mentioning. I know what it costs me to run a radio station the size of Love FM.”

RSV has 40 employees and Villanueva he has no plans for immediate layoffs. There is also More FM which is also housed in the RSV media center as a sister company and gets a subvention of $3,000 a month. Villanueva reportedly has a mandatory two month notice in his contract’s termination clause meaning that government may have to pay $33,000 before it terminates... And while RSV does not foresee cutbacks, the same can't be said for other stations like FM 2000, which, today's Amandala reports will be making staff cuts. Of 26 radio stations countrywide, 6 were receiving subsidies.