12. PAUL QUINN (National) Link to this
to the Minister for Economic Development
What is the Government doing to achieve better value for money in Government procurement?
Hon GERRY BROWNLEE (Minister for Economic Development) Link to this
In June this year the Government launched a 4-year Government procurement reform agenda. The major reform is the establishment of new centres of expertise. These will be specialist teams to negotiate all Government contracts, particularly where Government agencies duplicate their spending decisions. In other jurisdictions an all-of-Government approach to procurement has returned on average between 5 and 10 percent savings.
Hon GERRY BROWNLEE Link to this
There are a number of aims to the Government procurement reform agenda, including cost savings, the building of procurement capability and capacity, enhancing the opportunity for New Zealand businesses to participate in Government procurement, and improving governance, oversight, and, of course, accountability as well. New centres of expertise will be focused mainly on driving cost savings in the first year but in the future will also support procurement capability to build and manage supplier relationships across the key purchase areas for Government expenditure.