Procurement Changes A Significant Breakthrough For Kiwi Businesses

Buy NZ Made welcomes the Government’s announcement introducing a new Economic Benefit to New Zealand test in public procurement - a long-awaited move to ensure taxpayer dollars go back into creating value, jobs, and stronger local supply chains.

Executive Director Dane Ambler says the change represents a decisive shift from lowest-cost tendering toward long-term national value.

"Government contracts are worth more than $50 billion a year. Even a small share redirected toward New Zealand producers and service providers has a massive ripple effect - supporting regional economies, skills development, and innovation," Ambler says.

"For decades, Kiwi businesses have been asking for a fairer shot at supplying government. This new economic benefit test is a strong signal that buying local matters."

Under the new rules, agencies must consider the economic benefit to New Zealand in every procurement. The framework applies to all goods, services, and refurbishment contracts over $100,000, and construction contracts over $9 million.

Ambler says the changes align directly with Buy NZ Made and BusinessNZ’s long-standing advocacy.

"This is about ensuring the money we already spend as a country works harder for New Zealand. When local firms win contracts, that spend circulates through wages, apprenticeships, and community investment - instead of leaving the country."

Buy NZ Made is encouraging businesses to get ready by quantifying their local impact - including local employment, regional sourcing, sustainability practices, and supply-chain resilience - so they can showcase measurable economic benefit in tender responses.

"This is the time for Kiwi manufacturers, service providers, and suppliers to step forward. Government buyers want to work with you - but you need to tell your economic story clearly."

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