Chief Minister Tony Brown says it's essential the Manx government gets the best value for the Island's taxpayers when it comes to the purchase of goods and services.

North Douglas MHK John Houghton believes the involvement of the Post Office in the supply of stationery products to government could harm local firms.

The Council of Ministers has approved a new Procurement Policy setting out clear guidelines for such spending across government, and the Post Office will coordinate tenders.

In the House of Keys yesterday (Tuesday), Mr Brown said there is no intention to cause problems for small businesses in the private sector.

But he is admitting the whole situation is something of a balancing act and says, with government spending more than ?80 million a year on everything from paper and photocopiers to fuel and buildings, savings have to be made (play audio file):

The government says its new coordinated approach to buying goods and services aims both to support the local economy and get better value from taxpayers' money.