Fairness the key requirement in government purchases
Fairness is the key requirement in government procurement policies, says BusinessNZ.
Commenting on a proposal for a commission of enquiry into the issue, BusinessNZ Chief Executive Phil O’Reilly said there was definitely a need for changes in purchasing behaviour by some government agencies.
“But it’s not something a commission of enquiry can fix.”
Mr O’Reilly said there were many parts to the problem, including:
- lack of procurement experience in some government agencies
- concentration on upfront rather than whole of life costs
- decision making in ‘silos’ in government agencies
- risk aversion to giving New Zealand companies a go
“The Government has set up a procurement working group to address these issues. Information so far gathered indicates New Zealand companies just want a fair go.
“They don’t want special treatment or featherbedding. They realise they need to produce a world class product at a world class price and they realise also that featherbedding will lead them to being less competitive internationally.
“A knee-jerk ‘enquiry’ response runs the risk of promoting protectionist policies that would reduce the competitiveness of New Zealand companies in the long run.
“Procurement training policies for the state sector are now underway and this should help change undesirable procurement behaviours by some government agencies.
“All we want and need is a fair go, and a system that ensure government agencies don’t unfairly exclude New Zealand companies. New Zealand companies know that if they get fair treatment they’ll get a good share of what’s on offer.”
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