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Tendering out to contract out saves £7.6 million

£3.2 million saved last year says Minister

The government says it’s saved just over £7.6 million in the last five years by tendering out to contract.

Treasury Minister Eddie Teare gave the figures in answer to a Tynwald question for written answer from West Douglas MHK Chris Thomas.

Mr Thomas had asked to see how much had been saved after various services had gone out to competitive tender.

Mr Teare said records began in April 2011, and savings were calculated based on how much the government spent itself compared to how much it paid a contractor.

Mr Teare’s figures show in the first year, putting services out to tender had saved the government just over £481,000 – and that figure’s steadily grown over the past five years.

Last year, Mr Teare says just over £3.2 million had been saved, with the Department of Health and Social Care accounting for £2.2 million of that total.

Mr Thomas had also asked about individual contracts – but Mr Teare said confidentiality agreements with contractors meant he couldn’t be that specific.

And he added the figures may not be absolutely accurate as some contracts are still running and so couldn’t be included in the statistics.

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