The government has revised certain purchasing regulations to help strengthen Kiwi businesses, Economic Growth Minister Nicola Willis has announced.
The changes would come into effect on December 1.
One of the changes introduced a new economic benefit test for government agencies to use when choosing their suppliers.
The new rule requires that a minimum of 10% of the decision be based on the economic benefits offered by a business’s proposal.
Additional emphasis will be placed on factors such as engaging Kiwi businesses for contract delivery, generating jobs, and providing training and development to enhance the skills of New Zealand workers.
“Businesses shared that the lack of weighting for New Zealand’s interests in the evaluation criteria was holding them back,” Willis said.
“We want to see taxpayer money supporting Kiwi businesses to grow, hire, and thrive.”
Willis said the test also aims to motivate international companies bidding on government contracts to show a commitment to generating value in New Zealand.
“Government contracts are collectively worth more than $50 billion a year,” Willis said. “The purpose of these changes is to make it easier for New Zealand businesses to win more of these contracts, either directly or as subcontractors in the supply chain.”
The government also reduced the number of rules from 71 to 47, making them more accessible and easier to navigate.”
The new rules will apply to all contracts for goods, services, and refurbishments valued over $100,000, as well as all construction contracts exceeding $9 million.
Contracts falling below the threshold are expected to be awarded to qualified local businesses.
“These changes not only help level the playing field but help ensure that taxpayer money is spent responsibly and efficiently and maintains public trust as well as supporting local businesses.”
“New Zealand respects its international trade commitments and the settings in the rules continue to uphold our obligations. This is important to ensure that Kiwi businesses continue to benefit from open access to large international markets.”