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New approach to Government spending on goods and services 7 May 2010

GOVERNMENT has announced a new co-ordinated approach to its buying of goods and services that aims both to support the local economy and achieve better value for taxpayers’ money.

Departments, Boards and Offices currently spend more than £80 million a year in total on a wide range of items and services from vehicles and fuel, furniture to photocopiers, maintaining our buildings and resurfacing the roads.

Now the Council of Ministers has approved a new Procurement Policy, developed by Treasury, setting out clear guidelines for such spending across Government.

The policy has six principles to be taken into account when buying goods and services:

  • Buy local, favouring local suppliers where price differentials are marginal;
  • Achieve best value for money, by procuring through open competition;
  • Maximise potential savings by acting collaboratively across Government in areas of common spending;
  • Increase internal efficiency – fully utilising Government’s own resources before buying externally;
  • Reduce overdependence on single vendors, for example by engaging multiple suppliers and retendering contracts;
  • Social responsibility – recognising ethical and environmental impacts.

The Procurement Policy has been developed by Treasury following a comprehensive review of Government procurement activity and its appointment of a new Head of Procurement, Neil Davidson. The policy will be implemented by the new Procurement Forum, comprising relevant officers from across Government, under the direction of Treasury’s Value for Money Committee chaired by Mr Eddie Lowey MLC.

Treasury Minister Anne Craine MHK commented:

‘The Isle of Man Government spends the equivalent of about £1.5 million a week on the things the organisation needs to do its job of providing services to the public. That is a lot of taxpayers’ money and a significant sum in terms of the Island’s economy.
Government has a duty to make the most of this spending - on behalf of the taxpayer, the local economy and society as a whole. This new Procurement Policy will help ensure that we achieve best value for money from our purchasing while contributing to the development of the Island’s economy.’

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