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The government has set a new 5 percent procurement target for Māori services in a bid to support the Māori economy post Covid-19
Māori Development Minister Willie Jackson.
Picture: © VNP/ Phil Smith
The aim is to encourage public service firms to spend 5 percent of the roughly $42 billion it utilizes yearly on items and services through Māori organizations.
Māori Advancement Minister Willie Jackson said it would encourage public service agencies to cast their net larger when granting contracts, and firms would be kept track of to ensure they were satisfying the target.
” They are required to reflect on what they’re doing, and we’re really requesting for reports along the way in terms of what’s taking place, and they’ll be monitored by MBIE and TPK,” he said.
” This is all new but we wish to deal with the various companies and it’s not about taking out the huge stick, at the moment we’ve got Māori companies that are crying out for assistance, who are truly rapt with what we’re doing.”
He stated indigenous procurement was working successfully overseas.
” Native procurement is currently successful globally. In Australia the targets led to contracts with Aboriginal and Torres Strait Islander services increasing from $6 million to almost $2 billion in simply four years,” he stated.
” This kaupapa will offer our small and medium business the chance to take part in the economy.”
Financial and Regional Development Minister Stuart Nash said the new target would further improve cash flow to Māori businesses and assist diversify the consumer base for Māori services.
” By accessing more of the governments yearly procurement spend, Māori company owner and personnel will gain from greater training and employment opportunities, financial strength and business growth,” he said.
” Māori companies have a strong presence in the main sector and tourism, in accommodation and the food market, the retail sector and in the trades. This policy has the prospective to more assist with kick-starting of economic activity into other sectors.”
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