Hon Nicola Willis
Minister for the Public Service

New Cabinet policy directives will ensure public agencies prioritise public services on the basis of need and award Government contracts on the basis of public value, Minister for the Public Service Nicola Willis says.

“Cabinet Office has today issued a circular to central government organisations setting out the Government’s expectations for needs-based service provision. The circular makes clear that the targeting, commissioning, and design of public services should be based on the needs of all New Zealanders.

“This circular gives effect to commitments in the coalition agreements between the National Party and the ACT Party, and between the National Party and the New Zealand First Party,” Nicola Willis says.

“The Government has been concerned that in the absence of this circular, agencies may use ethnic identity or other forms of personal identity as a proxy for need, and therefore a justification in itself for targeted services.

“The circular makes clear that when considering proposals for services targeted to specific population groups, agencies must provide a strong analytical case for any targeting, recognising that many variables can be used to identify and assess need, and that all variables should be considered before ethnic identity is automatically used to determine need.

“The Government also wants to ensure that Government contracts are awarded within a robust and merit-based framework that focuses on delivering public value.

“As such Cabinet has removed the previous Government’s target for 8% of government agencies’ annual contracts to be awarded to Māori businesses.

“This target risked a perception of discrimination and gave the impression of an uneven playing field for suppliers.

“We continue to encourage and expect Māori businesses to bid for and win Government contracts.

“The Government believes more can be done to ensure a wider range of small and medium sized Kiwi businesses have the opportunity to win Government contracts that generate value for our communities. The Ministers for Māori Development, Economic Development and Regional Development will report back to Cabinet next year on potential next steps in support of this goal.”

Note:

The Cabinet Circular, Cabinet Paper and Cabinet Minute are attached.

The circular is also available at Publications | Department of the Prime Minister and Cabinet (DPMC)

The Cabinet Paper and Minute is also available at: Publications - Te Kawa Mataaho Public Service Commission

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