Media release

30 January 2019

Government Procurement Rules 4th edition, consultation opens

The Ministry of Business, Innovation and Employment (MBIE) has released a document seeking feedback on the Government Procurement Rules, 4th edition.

John Ivil, General Manager of New Zealand Procurement and Property, says Government agencies spend approximately $41 billion each year buying goods and services from third-party suppliers and providers, accounting for around 18 per cent of New Zealand’s GDP.

“Since 2013 the Rules have been the government standards of good government procurement practices.”

“These changes reflect Government’s decision to prioritise a set of outcomes for agencies to leverage from procurement – achieving greater collective impact, and we are keen to hear stakeholder’s thoughts before finalising the next edition.”

In October 2018 Government agreed, in principle, that its procurement contracts could be more explicitly leveraged to support the Government’s economic strategy and broader outcomes. The priority outcomes are to:

• Increase New Zealand businesses’ access to government procurement.

• Increase the size and skill level of the domestic construction sector workforce and provide employment opportunities to targeted groups.

• Improve conditions for workers and future-proof the ability of New Zealand business to trade.

• Support the transition to a net zero emissions economy and assist the Government meet its goal of significant reduction in waste by 2020.

The consultation on the Rules runs until 5 March. Feedback will be incorporated and submitted to Cabinet for final decisions in Q2 2019.

MBIE is also seeking feedback on a proposed Supplier Code of Conduct which will be referenced in the 4th Edition of the Rules. Feedback on the Supplier Code of Conductruns until 19 February.

Note to editors: Web links to both consultations

https://www.mbie.govt.nz/have-your-say/consultation-on-proposed-government-procurement-rules-4th-edition/

https://www.mbie.govt.nz/have-your-say/consultation-on-proposed-supplier-code-of-conduct/

NZ Government Procurement and Property has been working on a Supplier Code of Conduct since late 2017/early 2018. The Supplier Code of Conduct will clearly set out the Government’s expectations of suppliers to government, including expectations on ethical behaviour. It will apply to Government suppliers, rather than to individual public servants, which is governed by the existing State Services Commission’s Code of Conduct.

While the development of the code doesn’t stem directly from ethical concerns over any one supplier or situation, the circumstances which led to the suspension of Fuji Xerox from the All-of Government contract highlighted that stronger and more explicit provisions were needed in government contracting.

There has already been considerable consultation on the Supplier Code of Conduct with suppliers.

There is no confirmed date for when the Code might be approved and implemented.

Related documents

Cabinet paper: Enhancing the effectiveness of Government Procurement policy

Cabinet minute: Enhancing the effectiveness of Government Procurement policy

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