Kate Lord-Brennan MHK is set to bring forward a motion in Tynwald this week urging a review of government procurement policy to give greater weight to local suppliers.
The motion, which aligns with recommendations from a 2022 Treasury report, seeks to reinforce the “Think Local” initiative by ensuring that government contracts consider not only cost but also the broader social and economic benefits of supporting Manx businesses.
It would benefit companies which have “adequate substance” on the Isle of Man compared to their off-island counterparts.
Motion Aims to Strengthen Local Procurement
Lord-Brennan’s motion states:
“That Tynwald is of the opinion that government procurement policy and practice should be reviewed and updated to give greater weight to local suppliers with adequate substance and in order to fulfil Recommendations 5 (best value) and 6 (social value) of the Review of the Isle of Man Government Procurement Policy (PP 2022/0042), which have been agreed by the Treasury, and in order to support the concept of think local.”
Speaking to Manx.News, Ms Lord-Brennan said: “My motivation for this is for the Government to keep an eye on the local economy and local businesses in terms of government purchase of goods or services – to reinforce the concept of ‘Think Local’.”
She emphasised that companies awarded government contracts should have substantial operations on the island, with a genuine commitment to the local economy through employment, assets, and community contribution.
Follow-Up to 2017 Procurement Review
Ms Lord-Brennan highlighted that her motion builds upon a 2017 Treasury-initiated review of procurement policy, which sought to balance cost-effectiveness with local economic benefits.
I am calling for government procurement policy and practice to be reviewed and updated to give greater weight to local suppliers with adequate substance, so as to have an eye on best value and social value, to support the concept of ‘Think Local’ (which has previously been championed by government and local industry) and which we need to remember and value.”
Kate Lord-Brennan MHK
The motion calls for a check on whether current procurement practices align with the policy intent of achieving “best value” while prioritising local spending where possible.
Defining “Best Value” and “Social Value”
A 2022 Treasury report expanded the definition of “best value” to include social and economic benefits such as sustaining local jobs, developing skills, and retaining revenue on the Island through taxation and social security contributions.
Ms Lord-Brennan stressed the importance of measuring social value.
She said it is “about seeking to maximise the additional benefit that can be created when procuring services above and beyond the benefit of merely the services themselves”.
“Social value is about looking beyond the price of each individual contract and looking at what the collective benefit to a community is when the Government chooses to award a contract. This is very important in small economies.”
Call for Treasury Oversight
The MHK said she wants assurance that the 2022 recommendations are being implemented effectively.
“I want to see that those recommendations are being carried through in practice and checked on by the Treasury, as it is important for local businesses who invest in and develop on the Island, and provide local jobs and tax contributions and often so much more,” she said.
“The bottom line is: Does the government need to consider and watch out for the local economy and support local businesses in public spending alongside expertise and value for money?”
Next Steps
If passed, the motion would prompt a formal review of procurement policies to ensure they align with the principles of supporting local enterprise while maintaining financial responsibility.
Tynwald sits on Tuesday from 10am.
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