Chamber welcomes Gov’t decision on procurement policies | July 2024
12 July 2024
Isle of Man Chamber of Commerce has welcomed the Government’s decision which allows local businesses to be favoured when awarding contracts.
Earlier this week Government announced significant changes to its procurement policies which are aimed at supporting local businesses. These changes will allow Isle of Man-based firms to be favoured when making decisions about awarding contracts.
The Council of Ministers has agreed to reserve contracts below the World Trade Organisation (WTO) tender threshold for local businesses. This means that up to 94% of Government spending opportunities, potentially £50million annually, could be directed into the Island’s economy. The Government says this move is a positive outcome of Brexit because it was not possible under previous EU procurement rules.
Chamber CEO Rebecca George said: “This is very good news for IOM businesses and the local economy. Taxes being spent here on the Island have a multiplier effect which supports business growth, existing and new jobs, plus the impact it has in terms of boosting confidence to encourage employers to invest in the future. In this context we see this as a step in the right direction – but we also have to say that it’s long overdue. Chamber and the wider business community have been calling for this type of support for some time. In fact, back in 2013 Chamber gave a presentation about the importance of spending taxpayers money in the local economy. However, we also recognise that there were some difficult obstacles to overcome that were beyond the Government’s control.”
In the food sector, says Chamber, because government is one of the largest purchasers the new procurement policies could be a catalyst for a wider variety of food to be produced here, and therefore increase food sovereignty and security. Looking at the overall picture across all sectors, the Island’s biggest business network strongly believes that awarding more contracts to Island firms can only increase the levels of knowledge and expertise among employers and employees.
At its June sitting Tynwald approved an order that will ensure that reserving contracts for local businesses does not constitute an anti-competitive practice.
Rebecca George added: “This is an important factor to consider because, in regard to procurement policies, Government must also remain focused on getting the best value for the Isle of Man taxpayer when awarding contracts while also supporting local businesses. With this in mind we welcome that getting this balance right has also been recognised.”
Chamber is hosting an event on July 18th for businesses to find out more about the new procurement policies. It will feature Isle of Man Government’s Head of Procurement, Neil Davidson, and will be held at the Launchpad on the ground floor of Hillary House, Prospect Hill, Douglas, from 9.15 to 10.30am. Click here for full details or to book a place.
Businesses that want to find out more about the new policies can also contact Government’s procurement team at procurement@gov.im