David
CLARK
Economic Development Spokesperson

8 March 2013 MEDIA STATEMENT
Joyce too little, too late on procurement

Steven Joyce has finally woken up to the need for procurement policies to support Kiwi companies but his tepid proposals don’t go far enough, Labour's Economic Development Spokesperson David Clark said today.

“Steven Joyce’s meek policies simply aren’t good enough. He fundamentally believes that Government procurement is all about getting the cheapest possible price, no matter where the company comes from.

“That’s why his road to Damascus conversion must be treated with the utmost suspicion by New Zealanders and businesses.

“Pro-New Zealand procurement policy needs to take whole of economy benefits into account, not just whole of life of a contract. Smart government agencies already take whole of life into account. Steven Joyce's policy looks little more than a reheat, but rising unemployment shows his current approach is not working.

“When taxpayer money is being spent, we need to be aware that benefits circulate though the wider community. Jobs are created. Sub-contractors are paid. Income tax and GST are collected.

“Businesses have told the Parliamentary Inquiry into Manufacturing that we need stronger procurement policies to help build those companies into a force that can be reckoned with overseas. But this isn’t happening.

“Kiwi businesses are competing with multinationals that are adept at avoiding tax and can undercut local competition. It’s not a level playing field. This is the fundamental problem and National’s proposals won’t change that.

“In the last year 17000 manufacturing jobs were lost and 33,000 Kiwis gave up on the workforce in the last quarter. Steven Joyce must be bolder to stop the rot,” said David Clark.

© Scoop Media

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