Scrapping the Progressive Procurement programme designed to support and grow Māori businesses is a missed opportunity.

“The Government’s announcement today is short sighted. This programme allowed Māori businesses to compete for the delivery of important services in our communities,” Labour Māori Development spokesperson Willie Jackson said.

Before the introduction of Progressive Procurement, Māori businesses had to traverse an environment that, for the most part, did not look beyond a small number of large, established and well-resourced businesses.

“We changed that to give Māori businesses an opportunity – when before they didn’t even get a foot in the door,” Willie Jackson said.

“I am proud to have been part of a government that supported businesses like Tairāwhiti Contracting owned and operated by Kat Kaiwai who saw the need and was provided with an opportunity through progressive procurement to start a business, employ locals and support the clean-up in the after math of Cyclone Gabrielle.”

Initially, the target was five percent of contracts for Māori business which due to the demand, hit six percent in 2022. This meant more than 3,200 contracts went to Māori Businesses.

Due to the demand that was increased to eight percent - meaning 92 percent of contracts awarded were non-Māori. 

“Māori businesses were still expected to deliver against the same standards as all other businesses. The Progressive Procurement programme was a market-access opportunity only and didn’t guarantee Māori businesses a contract or change the requirements or settings for delivering against contracts,” Willie Jackson said.

“The Māori economy is a huge opportunity for New Zealand. It grew from $16 billion to $70 billion in 20 years, and in 2022 had a projected growth of five percent per annum, which was expected to reach $100 billion in assets by 2030.”

In Canada, Australia, the United Kingdom, the United States and South Africa, changes in government and corporate procurement have seen a significant rise in the number of indigenous or minority-owned businesses, resulting in improved socio-economic conditions for targeted groups.