Government’s protectionist procurement blows hole in “Go for Growth”

The Government has today opened consultation on new procurement rules that would prioritise contracts based on “public value”—a concept that includes social, cultural, and environmental benefits, alongside a preference for domestic businesses - rather than cost-effectiveness.

Taxpayers’ Union Spokesman James Ross has condemned the move as “irresponsible protectionism at the exact same time the Government claims to be focusing on growth and cutting costs.”

“Favouring more expensive local firms over better-value alternatives will only drive up costs. The Government’s books are already $12 billion in the red.”

“It’s worse than just protectionism. Why are we prioritising social and cultural ‘benefits’ over cost-effective Government services whilst New Zealanders are grappling with a cost-of-living crisis?”

“These new rules will give future governments free rein to mandate their own pet projects. They’re an open invitation to lock in woke, expensive contracts—funded by taxpayers who are already stretched thin.”

“With Budget 2025 two months away, we need to see pro-growth policies like Full Capital Expensing on the table, not bizarre new rules which will make growth harder.”