Tynwald has unanimously supported a motion calling for a review of procurement policies to prioritise local suppliers with “adequate substance” on the island.
The motion, brought by Kate Lord-Brennan aims to strengthen the local economy while ensuring value for money.
During the debate in Tynwald, Ms Lord-Brennan emphasised the need to ensure government contracts benefit businesses with genuine operations on the island.
“My concern is to make sure that government is aware that contracts… are rightly going to companies that do have real substance here and are not just ticking the box of having a bare minimum presence,” she said.
Treasury Minister Dr Alex Allinson MHK supported the motion but cautioned against overcomplicating procurement processes. He highlighted recent changes, including a “reserving” policy directing contracts under £100,000 to local firms.
“Reserving strikes the right balance between favouring local businesses and ensuring a competitive environment,” he said.
However, he pledged to review the policy further to address concerns about “adequate substance.”
Amendments
Several amendments were proposed but ultimately rejected. Joney Faragher MHK (Douglas East) sought to include “broader societal benefits” in procurement criteria, arguing local organisations often reinvest in the community.
Dr Allinson opposed this, stating it could create “extra complexity” and bureaucratic burdens.
Julie Edge proposed extending the review to arms-length bodies like the Steam Packet and Manx Utilities. While her amendment wasn’t voted on, she stressed the importance of aligning procurement across all government entities.
Jason Moorhouse raised concerns about defining “Manx products,” suggesting a 50% local value threshold. Meanwhile, Rob Mercer MLC warned against excluding small businesses, stating, “I wouldn’t want to see suppliers edged out simply by virtue of their size.”
Social Value
An interesting exchange arose over incorporating social value into procurement.
Lawrie Hooper pointed out that Treasury’s own financial regulations already require social value considerations.
“Treasury has directed departments to consider social value… yet the Minister is now saying it’s impossible to comply with,” he said.
Dr Allinson clarified that the amendment went beyond existing rules, risking “distracting from value for money.”
Dawn Kinnish MLC echoed support for social value, citing equality training as an example. “Asking a company to evidence that their staff have had equality training is not a massive obligation,” she said.
The motion passed unamended meaning the Treasury will now review procurement policies.
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