The New Zealand Government supports using local contractors and suppliers to build regional infrastructure projects, but will not intervene in agency-level procurement processes, Infrastructure Minister Chris Bishop told Lithos on 21 September.
The Government’s procurement focus is on achieving the best public value, while considering economic benefits including local business opportunities, according to Bishop.
“[It] supports using local contractors and suppliers where it makes sense, and wants to [signal] a strong pipeline of infrastructure work … early so … businesses can plan, build capability and compete for that work,” Bishop said.
“However, … decisions about which contractors are ultimately engaged are appropriately made by the agencies delivering … projects in line with their procurement practices,” he added.
Bishop’s comments come days after industry group NorthChamber and Northland NZ – a regional development agency – called for local content requirements in contracts for the Whangārei Hospital renovation and an upcoming highway project.
The two developments create an opportunity to build lasting regional capability, but need an active local procurement process, Northland NZ Chief Executive Paul Linton said on 18 September.
“The Government has not included minimum local employment or procurement requirements for either project,” Bishop told Lithos.
But the Northway Consortium – which will lead the highway project – expects to source around 60% of its materials from local supply chains, NorthChamber Interim Chief Executive Officer Tim Robinson told Lithos on 21 September.
It also plans to create workforce development schemes to support young, Māori, and Pasifika workers, Bishop said. “[The highway project agreement] includes specific employment and training requirements for Māori applicants, including apprenticeships and summer internships,” he added.
The Government expects the highway project to create local maintenance-related subcontracting opportunities over the next 25 years, according to Bishop.
Northland authorities have called on Wellington to support local businesses through procurement for multiple years. They aim to secure preferred supplier status for Northland businesses with all Crown agencies, multiple councils said in Te Rerenga, a 2024 economic wellbeing pathway.
By Avinash Govind