27 Apr 2013

Business group welcomes new procurement rules

6:22 pm on 27 April 2013

Business New Zealand hopes it will now be easier for smaller local companies to do business with the Government as it moves to simplify and standardise its tender process.

The Government has introduced new rules shifting the emphasis from lowest upfront costs to the best value for money over the contract's whole life.

The rules - the culmination of a major reform programme launched in 2009 - replace 44 different pieces of legislation, Cabinet directives and miscellaneous guidance.

Business New Zealand's executive director of manufacturing, Catherine Beard, says the change is long overdue.

Ms Beard says previously less notice was taken of things that are important to New Zealand manufacturers, such as quality, and the change will put local producers on a more equal footing with low-cost overseas countries.

The Council of Trade Unions says the changes don't go far enough and should require the Government to take into account the level of local involvement in each proposal.

Ms Beard says she would also support such a move.