ACT Local Government spokesman Cameron Luxton is calling on local councils across New Zealand to ditch “progressive procurement” policies.

“Council procurement should have one purpose: deliver quality services at the best possible value for ratepayers. The pursuit of ‘progressive’, ‘diverse’, 'sustainable', ‘social enterprise’, or ‘broader’ outcomes in contracting inevitably detracts from a value-for-money focus.

“In September, the Government ditched Labour’s quota for 8% of government agencies’ contracts to be awarded to Māori businesses. It’s time for councils to follow suit.

“After a quick look, I’ve identified eight major councils with procurement policies that reach far beyond a value-for-money focus. I’ve written to each of them and asked them to review these policies.

“Bureaucratic, politically correct procurement rules means reliable contractors are ruled ineligible, or are simply put off by the paperwork. Having an exclusive club of favoured contractors means less competition and worse value for money.

“Councils should be interested in whether a contractor can get the job done at a fair price. But instead, they’re telling pipeline technicians and traffic management operators to scour their family tree to figure out if they can qualify as a Māori business. That’s absurd.

“In February, Auckland Mayor Wayne Brown flagged a review of the council’s procurement policies after a long-standing contractor was ruled ineligible based on a lack of ‘social enterprise skills’ and relationships with community and Māori organisations. ACT will be asking him for an update, as there may be lessons for other councils.”

The letters to each of the councils can be read here:

• Wellington City Council
• Palmerston North City Council
• Christchurch City Council
• Tauranga City Council
• Dunedin City Council
• Napier City Council
• Hastings District Council
• Hawke’s Bay Regional Council

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