- Hon Nicola Willis
Officials will report six-monthly on the new government procurement rules which take effect today to ensure they are being complied with, Economic Growth Minister Nicola Willis says.
"The Government is serious about helping Kiwi firms to grow so the Ministry for Business, Innovation and Employment will monitor both compliance and the impact of the new rules.
"Businesses have told the Government the new rules are a game-changer that will promote greater competition and give them a fairer shot at winning government contracts that are collectively worth more than $50 billion a year.
"Getting government work provides Kiwi companies with the opportunity to grow and build staff capability.
"In some cases, it can also enable them to expand to a scale at which they can compete internationally.
"But feedback from businesses is that many previously found the paperwork involved in bidding for contracts daunting and were frustrated by a tender process that took no account of their contribution to New Zealand.
"Therefore, the Government has slashed the number of rules agencies must follow when tendering contracts from 71 to 47 and introduced a new economic benefit test that requires agencies to apply a minimum 10 percent economic benefit weighting when evaluating contracts.
"Economic benefits include agencies making better use of New Zealand resources such as increasing workforce participation, providing training or apprenticeships, and improving the pay or conditions of Kiwi workers," Nicola Willis says.
The new rules do not infringe on New Zealand's trade agreement obligations because international companies also have the opportunity to demonstrate economic benefit to New Zealand.
Notes for editors
- Agencies must now seek economic benefits for New Zealand in goods, services and refurbishment contracts over $100,000 and $9 million for construction.
- Below these thresholds for primary procurement activities, agencies are expected to choose capable New Zealand businesses wherever possible.
