Local firms to be favoured in government contracts

The changes were approved in Tynwald's June sitting

An overhaul of the government's procurement policies to favour Manx businesses will foster a "more robust economic environment", the treasury minister has said.

Changes to the Fair Trading Act approved by Tynwald last month mean local firms can be prioritised without it amounting to anti-competitive practice.

The move means that up to 94% of government contracts could be awarded to island-based businesses, which could amount to contracts worth £50m annually.

Treasury Minister Alex Allinson said the policy, which would apply to contract worth up to £100,000, was a "significant step in supporting" local firms and the economy.

'Greater opportunitie'

"For the first time in nearly 50 years, we can actively favour local businesses in an open and legitimate manner," he continued.

Dr Allison told Tynwald members last month the changes meant the government could put contracts out to tender to just Manx businesses "in the first instance", however the move would only apply to contracts up to £100,000.

That figure sat "below" the World Trade Organisation threshold, which meant the island could "maintain a favourable position" in future free trade negotiations, he said.

He said that the move was a "positive outcome of Brexit" as it allowed the Isle of Man to "openly support its own businesses", which was "not always possible under EU procurement rules".

The changes "foster a more robust and self-sustaining" economy and would "provide local businesses with greater opportunities," he added.