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Ministry of Business Innovation and Employment Government Procurement Rules Consultation

Posted in Government, National; Tagged Government, Education; Posted 16 months ago by DPA Less than a minute to read

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To: Ministry of Business, Innovation and Employment
Date: April 2025

 

Purpose

This submission’s primary purpose is to advocate for the retention and strengthening of social objectives within these rules, particularly those related to creating employment opportunities for disabled people and ensuring fair wages. DPA aims to ensure that the significant public funds outsourced annually also contribute to improving the economic and social well-being of disabled New Zealanders.

Summary of DPA submission

DPA acknowledges the importance of transparent rules for allocating the $51 billion in annual outsourced funding. DPA supports the draft guidelines' principles concerning benefits to New Zealand communities, businesses, and contributions to positive social and cultural outcomes. However, a core concern is that the current draft prioritizes economic growth at the expense of social and environmental objectives, leading to disabled people missing out on key benefits from these initiatives.

DPA highlights the existing disparities in employment, noting that only 56% of disabled adults aged 15-64 have paid jobs compared to 82% of non-disabled people, with 72% of unemployed disabled individuals desiring work. They point out barriers such as the need for flexible working arrangements, employer attitudes, and insufficient workplace support. DPA advocates for linking economic and social objectives, referencing the 2020 Future Procurement Opportunities (FPO) rules that emphasized social procurement to create opportunities for businesses owned by various equity groups, including disabled people. DPA strongly opposes the proposal to remove requirements for considering how government purchases create employment opportunities for disabled people.

Furthermore, DPA opposes the proposal to remove the living wage requirement from government contracts. They cite Statistics New Zealand data indicating a significant pay gap, with disabled people earning a lower median weekly income compared to non-disabled individuals and often being employed in lower-income occupations. As an accredited living wage employer, DPA emphasizes the vital role of the living wage in ensuring a decent, dignified life and preventing exploitative low pay for the disability community.

Finally, DPA seeks clarification on a specific exemption in the Contracting Rules under 'Military and essential security interests,' which suggests rules may not apply to "goods, services or works of persons with disabilities, philanthropic or not-for-profit institutes". DPA expresses confusion regarding the rationale for this exemption and requests an explanation from the Ministry of Business Innovation and Employment (MBIE).

 


Key Recommendation/Finding:

That the requirements for considering how government purchases create employment opportunities for disabled people and businesses owned by disabled people are retained within the updated guidelines.

 


Supporting Statement 1:

The most recent data shows that only 56% of disabled adults aged 15-64 had a paid job, compared to 82% of non-disabled people, and a significant 72% of unemployed disabled people expressed a desire to work.

 


Supporting Statement 2:

Social procurement has proven to be an important and effective tool for creating employment opportunities for various marginalized groups, including disabled people, and integrating this into procurement guidelines allows economic and social objectives to mutually reinforce each other.

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DPA Submission 2504 Ministry of Business Innovation and Employment Government Procurement Rules Consultation (DOCX)

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