Simon Arcus: Wellington Chamber of Commerce CEO on the changes to the Government's procurement rules

Some changes to the Government's procurement rule book are being welcomed. 

Currently, there are 71 rules a business must follow to be awarded a government contract, but the Finance Minister is bringing that down to 47.  

It's also introducing a new economic benefit test which will consider the wider benefit to New Zealand when awarding contracts to Kiwi firms. 

Wellington Chamber of Commerce Chief Executive Simon Arcus told Andrew Dickens this should've been happening from the start. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
All right, this sounds like a dry old story, but
it's not. The Government's proposing changes to procurement rules. This
is to make it easier for New Zealand businesses to
win government contracts. Currently, there are seventy one rules that
agencies have to follow when tendering contracts, and the government
wants to reduce it to forty seven. The Economic growth
of Minister Nichola Willis, who is on with Mike later tonight,

(00:22):
Later this morning, she says, the contracts are collectively worth
more than fifty billion dollars a year. We've got the
Wellington Chamber of Commerce CEO Simon Arcis with me this morning.
Go on into you assignment.

Speaker 2 (00:33):
Good morning here, How are you good?

Speaker 1 (00:34):
Oh, I'm fine. This is a good idea where those
rules a ridiculous.

Speaker 2 (00:38):
Well, it's really good for New Zealand business. And part
of the reason for that is because we now recognize
the extra contribution that New Zealand businesses make. For example,
they employ people that pay tax versus this is another
you know, international entity which might not.

Speaker 1 (00:56):
This is true and this is why the cutting of
government spending on all sorts of kind track around the
place has actually had a ripple effect that's gone through
our entire economy because these people play tax in New Zealand.
So there we go. How big of a difference in
cutting red take will this make?

Speaker 2 (01:12):
Look? It's a big change, and I think it's also
what we really getting from that is the theme. This
is what we want to see. You want to see
it easier to do these sorts of things. And I
don't think it overly advantages in New Zealand business in
any way. So it's actually very sensible move, a good idea, I.

Speaker 1 (01:28):
Hope, well for things like you know, the living wage
cutting that and the evs and all that sort of thing.
What they've done is have introduced what's called an economic
benefit test to the regime, so everything has to be
looked at to see whether the bid is economically beneficial
to New Zealand. Should this have been happening with government
processes and procurement from the get go?

Speaker 2 (01:49):
Well, I think it should, and I think in some
ways perhaps it was read in their times when decisions
were made, but it's really good to see it explicit,
and I agree with Andrew from the get go we
should have had these kind.

Speaker 1 (01:59):
Of Okay, are the new Zealand businesses who want contract.
Is there a demand for it?

Speaker 2 (02:07):
Very much so. And I'll tell you what. The other
thing that's quite exciting about it is that you end
up being able to perhaps a ward a contract to
a business that can scale up. So they say, you know,
we can do this. We're just going to have to,
you know, get a few few extra people and we'll
we'll make it work. And that's that's great if there
are opportunities like that created along the way, but it.

Speaker 1 (02:26):
Could advantage New Zealand business right at the time when
we're trying to attract international investment. We've got a conference
coming up this week for instance. You know, if we're
advantaging New Zealand businesses, are we actually turning our back
on international opportunities.

Speaker 2 (02:40):
I don't think so, because you'll find these sorts of
rules are quite explicit and lots of jurisdiction. They're not
They're not unusual at all. And when you think about,
you know, the way that some businesses employee you know,
almost whole communities and they are involved in philanthropic work
and other things you do you do need to, I think,
recognize the extra value giving you and why not why

(03:03):
not I keep New Zealand's using business a little bit
of a you know, consideration, very good stuff.

Speaker 1 (03:09):
Simon Arkisan, I thank you for your time today. And
Simon is the Wellington Chamber of Commerce CEO.

Speaker 2 (03:14):
For more from Early Edition with Ryan Bridge, Listen live
to news Talks. It'd be from five am weekdays, or
follow the podcast on iHeartRadio