Rt Hon Winston Peters
New Zealand First Leader

Andrew Williams MP
Spokesperson for Commerce

1 March 2013

Government Procurement Bill To Give NZ Firms Preference

New Zealand First is drafting policy that would make it compulsory for government departments, state-owned companies and local councils to give first preference to New Zealand firms over foreign competitors.

The Government Procurement – Buy New Zealand policy would be triggered whenever public contracts go to tender.

The Policy would incorporate measures to ensure central and local governments put their business through New Zealand-owned banks.

Rt Hon Winston Peters says the difference in cost between a local product and an identical foreign product must exceed a certain percentage and benefit before foreign bids would be accepted.

“An independent board would be set up to review government procurement decisions based on a set of economic criteria.

“Central government alone spends $30 billion a year on procurement. Too many of these contracts are going offshore.”

Commerce spokesperson Andrew Williams says a 2010 study by BERL found that for every $1 million spent locally rather than overseas, 10.4 jobs are created or maintained, $108,457 of tax revenue is generated, and $128,685 savings are made on welfare payments.

“Our policy would put a stop to cheap foreign labour undercutting Kiwi workers. For example, it would have saved KiwiRail’s Hillside workshop,” says Mr Williams.

New Zealand First is in the process of drafting a Member’s Bill based on its Government Procurement policy.

ENDS

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