Sustainability to guide govt spending Dalziel says

14 June 2007

Sustainability to guide govt spending Dalziel says

Commerce minister Lianne Dalziel has welcomed the establishment of a New Zealand branch of an international organisation for procurement professionals.

The Chartered Institute of Purchasing and Supply (CIPS), which held its inaugural New Zealand conference in Auckland today, aims to promote best practice and quality standards as well as raising awareness of the effective contribution the management of supply markets makes to corporate, national and international prosperity.

"Linking New Zealand practitioners into a global community of over 42,000 members in 120 countries has got to be good for the profession," Lianne Dalziel told the conference.

"The Labour-led government is looking to the procurement professional community as a whole to help achieve our sustainable development goals.

"We're integrating sustainability into a single government procurement policy and implementing a national framework for sustainable procurement by setting standards and developing sustainability performance indicators, targets and reporting mechanisms, and developing a carbon costing methodology for procurement decisions.

"In some areas, government is the single biggest customer in the domestic market," Lianne Dalziel said.

"We're looking at different ways New Zealand companies can benefit from the opportunities offered by government procurement.

"Procurement decisions should be based on best value for the taxpayer's dollar over whole-of-life and this won't always mean the lowest price is the determining factor.

"New Zealand companies sometimes feel they are overlooked because they represent local innovation rather than a well known international brand.

"One option for ensuring New Zealand companies get full and fair consideration is to require departments to give reasons for rejecting a local tender, signed off at senior management level," Lianne Dalziel said.

"We need to consider the additional benefits that arise when home-grown innovation can foot it on home ground as a step up to the world stage."

ENDS