Hon Nicola Willis
Minister For Economic Growth
Hon Mark Patterson
Associate Minister of Agriculture

The Government is backing New Zealand sheep farmers and the wool industry with a change to government procurement rules, Economic Growth Minister Nicola Willis and Associate Agriculture Minister Mark Patterson announced today.

“From 1 July, government agencies will be directed to use woollen fibre products in the construction and refurbishment of government buildings, where practical and appropriate,” Nicola Willis says.

“The move delivers on a New Zealand First and National Party coalition agreement to preference the use of woollen fibres in government buildings.

“We’re showing our commitment to woollen fibres by leveraging government spending, to provide more targeted opportunities for wool producers. This will help to increase jobs, employment, and drive economic growth.

“The new requirement will encourage innovation in the building materials industry which will lead to more investment and new markets opening up. Woollen fibres have a wide range of uses in buildings including carpet, upholstery, insulation, and acoustic panels.

“There are also sustainability and health benefits to using wool. Wool’s natural qualities allow it to dampen sound and absorb pollutants, and woollen fibres contribute to healthier indoor environments by naturally regulating humidity and improving air quality.

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Mark Patterson says “the new requirements go beyond procurement’s immediate aim of purchasing goods and services. They demonstrate the Government’s support for the wool industry and farmers by encouraging increased demand for woollen fibre products in government-owned buildings.

“We’re walking the talk. This move will hopefully inspire private businesses to follow suit.”

“We are acting to get even greater value from our investments. It is the Government’s role to create the conditions for businesses to grow the economy and invest in creating more jobs.

“The wool sector contributed $549 million to the New Zealand economy in the financial year ending 2024 from exporting processed and unprocessed wool products.

“Wool has been synonymous with New Zealand since the early settlers bought sheep here 200 years ago, and New Zealand remains the world’s third largest wool producer, after China and Australia and accounts for about 9 per cent of total world wool production.”

“Supporting the NZ wool industry is a key part of the positive steps the Government is taking to add value to the economy.

“Our wool industry has recently been through a tough time with competition from synthetic fibres in global markets and a decline in both sheep numbers and the volume of wool produced. The sector is turning the tide with wool prices now covering the shearing costs, but we know there is more to be done.

“There’s a real swing back to natural fibres with consumer interests moving back to renewable fibres such as wool.”

The new procurement requirements will apply to the construction of government owned buildings that cost $9 million and more, and to refurbishments of $100,000 and more. The requirement will apply to about 130 agencies.

A wider review to improve the Government Procurement Rules is underway to remove red tape and promote responsible spending and competition.

Notes:  Wool fact sheet and construction procurement guide

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