Our 2011 election manifesto - Labour Party

Accessing government contracts needs to be less complex and costly.
These are avoidable and unnecessary barriers caused by Government contracts
being constructed or bundled in such a way that Kiwi firms can neither contract nor
sub-contract.
Government contracts often omit whole-of-life cost analyses, which would otherwise
ensure that the services of the Kiwi firm as maintenance provider are properly
valued. Similarly the economic flow-on effects of a local contract to the wider
economy cannot be under-estimated and should be taken into account.
Opportunities to directly enhance industry capability and skills development through
wise procurement decisions are often forgone.
Procurement decisions made by the government are not the same as those made in
the private sector. When government procures within New Zealand it then collects
income tax on wages, GST and so on. What makes sense in the private sector may
not reflect the situation in the public sector, which is why 40 skilled tradespeople
recently lost their jobs at the Hillside railway workshops in Dunedin.
Labour‟s solution
Labour is committed to implementing a modern, sustainable, WTO-compliant, procurement
regime.
Labour will review the existing components of government procurement to ensure
they are fit for purpose, accessible and practicable. We will ensure they operate
equitably with respect to access for Kiwi firms, in line with Australian Federal and
State contracts.
Labour will require government departments and agencies to undertake a wider
(economic) analysis of the impact of its preferred provider on the domestic economy,
rather than a narrower (financial) analysis when making procurement decisions.
Labour will require companies providing goods and services to the government to
have an apprenticeship/internship programme in place for NZ workers.
Labour will require government departments and agencies to consider the design,
size, sequencing of contracts to ensure they do not unnecessarily disadvantage Kiwi
firms.
Government departments and agencies will be expected to manage this policy within
their existing base lines with no additional funding being allocated.
Labour will, in the case of procurement contracts over $50m, require the production
of an Industry Participation Plan (IPP), which sets out how Kiwi companies can play a
bigger role.
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