New Plymouth District Council wants to spend more locally in a bid to save money and generate prosperity. Photo: RNZ / Robin Martin
New Plymouth councillors reckon buying local could save money - and bring growth, green gains and more mahi for Māori.
It comes as the government pressures councils to stick to basics and do more for less, including talk of a [https://www.rnz.co.nz/news/political/545694/local-government-new-zealand-crying-foul-over-potential-rates-capping
cap on rates rises].
A year ago councillors asked staff at New Plymouth District Council (NPDC) if spending more locally could bring savings and generate prosperity.
Now staff have told the Strategy and Operations Committee a new procurement strategy could bring the savings councillors demanded: $300,000 in the second year and $500,000 in the third.
The proposed strategy would also deliver wider wins, said NPDC procurement and commercial service manager Sudeha Hennayaka.
"At its heart the strategy's all about delivering value for money - while supporting local prosperity, environmental excellence and cultural values."
Councillors were wary it was too good to be true.
But the nuts and bolts of the new strategy would not be finalised till after October's local elections, Hennayaka explained, when a new council will rule on policies and procedures.
That freed current councillors to recommend the strategy almost unanimously: Murray Chong abstained, without saying why.
The new approach includes a push to buy more from Māori and from minority-community businesses.
A report by staff said the previous strategy called for Māori participation but lacked practical pathways to buy from Māori businesses.
Under the new plan "social procurement will … strengthen iwi, hapū, and whānau capacity, create employment opportunities for Māori, and enhance cultural resilience".
"Striving to be fair to all suppliers, we will work to foster relationships with iwi and hapū enterprises through whanaungatanga (relationship), creating opportunities for collaboration and mutual benefit.
"This includes strengthening engagement with Māori and iwi-affiliated enterprises… targeted outreach, supplier workshops, and simplified bidding processes."
Mayoral candidate Max Brough said he had wanted the council to use more New Plymouth businesses "for a while" but was told favouring locals was impossible when he became a councillor three years ago.
"There's a number of people in this town, that have been doing things here for a long time, that know how hard it has been to get a foot in the door [for] any council stuff."
Brough said businesses who would benefit - whoever they were - should be brought in early to shape the how the strategy was put into action.
"I want to make sure this goes out for public consultation."
The strategy promises economic, cultural, social and environmental gains at no cost thanks to a "modernised, outcomes-focused approach" including "structured governance, whole-of-life costing, and improved contract management".
Committee chair Bali Haque questioned how buying locally and saving half a million dollars could be balanced against longer-term cultural and environmental gains
Procurement and contracts lead Julie Pedley said the balance differed for each tender.
"In some projects, Māori engagement, cultural significance is more important than others. In some situations, health and safety is critical. In other situations, environmental protections.
"It's about what priority does council want to give… on any given project."
Mayor Neil Holdom said the council had historically taken on risk without proper assessment.
"We have allowed counterparties to write the contracts, which I think just reflects a lack of maturity," Holdom said.
"Something has to change and a key part of it in my view is procurement and whole life cycle costs."
The procurement strategy next goes to Te Huinga Taumatua in a fortnight, the Finance Audit and Risk Committee a week later, and finally to full Council for a decision on 12 August.
LDR is local body journalism co-funded by RNZ and NZ on Air.
