BusinessNZ said that changes to procurement rules would have a larger impact on the economy and drive sector growth.
The Government’s announced changes to procurement rules should give local and small businesses an edge in winning valuable contracts and further boost the economy, BusinessNZ has outlined.
Chief Executive of BusinessNZ Katherine Rich said government spending and procurement can be a powerful economic lever.
"Each year, government agencies spend more than NZD 50 billion on goods and services. In a country of five million people, where most of our businesses are small to medium-sized enterprises, winning a government contract can make a big difference. That's because the projects tend to be larger, and the impact local contracts can have on our economy is equally as significant,” she said.
Rich added that this has been something many industries have called for, as well as business leaders who have highlighted the benefits.
"For a long time now, BusinessNZ has advocated for procurement rules that emphasise greater economic value to New Zealand, as well as the value provided over the lifetime of a contract, rather than simply a lowest-cost procurement model.
"Starting December, the introduction of an economic benefit test should result in more kiwi bidders winning contracts, and will ensure international companies have considered the wider value they provide to New Zealand as part of the application process.”
Rich said that changes to procurement rules could grow various sectors and elevate businesses and the economy.
"If local companies can more easily participate in bigger contracts, either directly or via subcontracting to an international lead supplier, then New Zealand will be growing larger companies, employing more people, paying more tax and potentially having more products to export."
Rich also highlighted the recent immigration pathways for skilled trades and technicians as an opportunity to reinforce the value of trades as part of New Zealand's economy.
“By bringing in experienced trade and technical people, businesses can expand their capacity to take on more apprentices and provide high-quality training opportunities for New Zealanders entering the trades."
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