Photo: RNZ / Samuel Rillstone
The government plans to scale back the number of rules agencies must follow when tendering contracts, which it says will make it easier for New Zealand businesses to access government contracts collectively worth $50b a year.
Currently, government agencies must follow 71 rules when tendering contracts, but Minister for Economic Growth Nicola Willis wants to scrap 24 of them, which she said are redundant or unecessary, duplicate content, repeat staturory and regulatory requirements, or have never been applied in practice.
They include requirements to:
- Build new non-residential government buildings to a five-star rating standard
- Purchase battery electric or hybrid electric vehicles
- Purchase office supplies that produce low amounts of waste and/or are recyclable; and
- Pay the living wage in contracts for cleaning, catering and security guard services.
"New Zealand's businesspeople are innovative and resourceful and the Government wants to give them every opportunity to build scale so they can take on the world," Willis said.
"Reducing the number of rules will streamline and simplify the process for New Zealand businesses."
Willis has instead proposed a new 'economic benefit' test, where suppliers will have to demonstrate how they will deliver economic benefits for contracts above the value thresholds of $100,000 for goods, services, and refurbishment works, and $9m for construction works.
According to the consultation document released by the Ministry of Business, Innovation, and Employment, agencies will have to consider the following opportunities to deliver economic benefit:
- Providing skills and training that benefit New Zealand communities
- Employing workers in New Zealand
- Paying taxes in New Zealand
- Using New Zealand businesses, including SMEs, regional businesses and Māori and Pacifica businesses in delivering goods and services, either directly or as a subcontractor or in the supply chain
- Creating export opportunities for New Zealand goods and services
- Developing New Zealand industry capabilities or capacity
- Developing and adopting innovative products or practices that benefit New Zealand communities
- The environmental benefit of the proposed solution to New Zealand
- Contributing to positive social and cultural outcomes in New Zealand communities.
Consultation on the changes closes on 8 April.
Union says plan to scrap the Living Wage for contracts is 'heartless'
Union E tū said the government's proposal to scrap the Living Wage for workers employed by government contractors would send some of those workers into poverty.
Currently, contractors who deliver cleaning, security, and catering services for government agencies are required to pay at least a Living Wage of $27.80 to all their workers.
"The Living Wage requirement in the procurement rules gives these workers some much-needed reprieve. Our members have reported the huge difference the Living Wage makes in their lives, like allowing them to do the basics - pay the bills, put food on the table, buy clothing for their kids, and spend more time with their families," said E tū national secretary Rachel Mackintosh said.
"It is heartless to consider taking away this important protection for workers, which will categorically mean their lives will become much harder," she said
