The island’s Chamber of Commerce has welcomed the government’s changes to its procurement policies designed to support local businesses.

Last week the Isle of Man Government unveiled new measures which will enable them to prioritise island-based businesses when awarding contracts.

In recent years, the government has faced criticism from businesses and the public for not supporting the Manx economy by awarding contracts to businesses outside the island. The Council of Ministers has agreed to reserve contracts below the World Trade Organisation (WTO) tender threshold exclusively for Isle of Man-based businesses.

This policy shift means that up to 94% of government spending opportunities, potentially amounting to £50 million annually, could be injected directly into the local economy.

Government say these changes are a positive outcome of Brexit, which has afforded the Isle of Man the flexibility to support its own businesses in ways that were not possible under previous EU procurement rules.

The Chamber of Commerce, the island’s biggest business network, has said it’s a step in the right direction, but long overdue.

Chamber chief executive officer, Rebecca George, said: ‘This is very good news for Isle of Man 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.’ Chamber are hopeful that within the food sector, the new government policies could boost local food production, enhancing food sovereignty and security. In June, Tynwald approved an order ensuring that reserving contracts for local businesses does not constitute an anti-competitive practice. Rebecca George said ‘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.’ After the announcement by government, Treasury Minister Alex Allinson said that ‘for the first time in nearly 50 years, we can actively favour local businesses in an open and legitimate manner’.

Chamber is hosting an event on Thursday, July 18 for businesses to find out more about the new procurement policies.

It will feature 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.

To find out more, visit www.iomchamber.org.im.