PM's sea-change speech unleashes multi-billion procurement giant

The Prime Minister's Statement today marks a major sea change in the way the country will handle climate change and protect its trading position for long term success.

The announcement that a single green procurement policy will be introduced has the potential to unleash a multi-billion dollar sleeping giant, the New Zealand Business Council for Sustainable Development says.

"A requirement that the Government's 47 core agencies give preference to buying sustainable goods and services will lead to up to a third of the economy being redirected," the Business Council's Chief Executive, Peter Neilson, says.

"Government agencies' goods and services spending alone is $6 billion a year. If the Government insists its agencies weight supply contracts to favour sustainable suppliers, we will see the biggest step-change in sustainable business practice in New Zealand history.

"It will quickly involve the whole supply chain and see huge numbers of our 342,000 registered companies encouraged to engage in sustainable practices to keep or win Government contracts."

The sea-change to ensure products and services were not only profitable, but also did the best for the environment, people and enhanced the country's quality of life and trading position would sweep into the 95% of companies which employ 19 people or fewer.

"If the Government is bold enough on the procurement policy detail we will see thousands of small to medium enterprises involved in doing the right thing to help preserve and enhance the New Zealand way of life.

"While well-intentioned, the current approach has seen little progress: for example, only 27 licence criteria for Environment Choice eco label have been developed since the Government launched the scheme in 1992. Some Government agencies don't even have a green procurement policy something that is becoming commonplace in our major markets, like the European Union," Mr Neilson says.

"We're pleased the Government wants to work with us on the detail. The message to all business is stunningly clear: the world's rapidly going green to survive, New Zealand is about to do the same. The opportunities to lift growth and profits, from doing the right thing including rapidly commercialising new New Zealand technologies are immense.

"Our research shows 90% of business managers, proprietors and self employed think sustainable development to manage climate change and protect our trade is the way we should go. The Prime Minister's statement indicates the Government has heard that message."

Mr Neilson says the move to use biofuels is also encouraging.

"We shouldn't forget the big opportunities presented by the new Kiwi inspired research which can see biofuels sourced from algae grown on sewage ponds, and a new process which could see industrial plant gas emissions converted to low-emission biofuels. With the intellectual property owned in New Zealand, each of these ideas has a potential value of billions, as the world's population grows from 6 billion to 9 billion by 2050.

"Often in the past companies which did the pioneering were punished. Now companies which are first to do good will do well."

Moves are also coming to set a price on carbon and waste to landfills.

"That and procurement policy will become huge drivers of behaviour and investment change here and it will be well supported by the public."

Business Council nationwide polling by UMR also showed middle majority New Zealanders will get involved in doing the right things at their place if given the lead.

"Large numbers of Kiwis are also telling us they will switch party votes to a party which emphasises preserving the New Zealand quality of life. I think we're now seeing huge competition develop among the political parties because they know this. National's Bluegreen Vision, setting out policies for discussion on sustainability and the environment, is also very significant, specially when followed by a new leadership emphasis on the need to manage climate change," Mr Neilson says. "A multi-party policy convergence is now going on."

Results of Business Council quality of life research are available at http://www.nzbcsd.org.nz/story.asp?id=597. Recent decision maker polling on procurement and making the country carbon neutral is at http://www.nzbcsd.org.nz/story.asp?id=731. The Business Council's September 2006 statement on the need for sustainable Government procurement is at http://www.nzbcsd.org.nz/story.asp?id=731.

The Business Council's members jointly employ more than 50,000 people in managing resources, manufacturing, retailing and the service sector. Members contribute annual sales of $40 billion to the economy, equivalent to 30% of GDP.

ENDS

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