A government target for relevant government procurement contracts for goods and services to be awarded to Māori businesses annually will increase to 8%, after the initial 5% target was exceeded.
Published: Thursday, 23 March 2023 | Rāpare, 23 Poutūterangi, 2023
The progressive procurement policy was introduced in 2020 to increase supplier diversity, starting with Māori businesses, for the estimated $51.5 billion spent on government procurement every year. Te Puni Kōkiri and the Ministry of Business, Innovation and Employment lead the kaupapa and have engaged with over 400 Māori businesses across 25 industries on government procurement in the last two years.
Māori Development Minister Willie Jackson said the initiative has had early success such as government agencies already exceeding the initial 5% target by reaching 6% in the first full year of reporting.
“Māori businesses made up 6% of the total of government procurement contracts for the 2021/22 financial year. This meant more than 3,200 contracts were awarded to Māori businesses across the public sector, worth a total value of about $930 million.”
“We know our collective buying power can deliver better value for people and communities. All businesses must still win contracts based on merit but getting agencies to consider benefits other than just price, is making a positive social impact and boosting the Māori economy.”
“This creates wider outcomes for Aotearoa such as Government engaging with more small to medium businesses, helping regional business growth and creating jobs and training opportunities.”
Image caption: Inia Maxwell and Rongopai Stirling-Maxwell own Wawata Creative, one of the Māori businesses supported by the progressive procurement programme.