Integrating Responsible Business Conduct in Public Procurement

New Zealand

1. Policy

The Government Procurement Rules form the regulatory framework that governs public procurement in New Zealand. These rules are mandatory for approximately 136 public sector agencies, but are applicable throughout all levels of government. These rules take into account all eight RBC objectives – additional policy documents apply, depending on the RBC objective:

Environment

This aspect is also included in the Supplier Code of Conduct.

Human rights

This aspect is also included in the Supplier Code of Conduct and New Zealand’s Human Rights Act.

Labour rights

The Supplier Code of Conduct and New Zealand’s Employment Contracts Act applies.

People with disabilities

This aspect is also covered by the Supplier Code of Conduct and New Zealand’s Human Rights Act.

Long-term unemployed people

The Construction Procurement Guidelines include additional rules.

Gender and minorities considerations

This aspect is also included in the Construction Procurement Guidelines and New Zealand’s Human Rights Act.

Integrity

Several policies apply, including the Code of Conduct for the State Services, the Supplier Code of Conduct and the Crimes Act.

Other policy frameworks

• The five principles of Government procurement, included in the government procurement rules, instruct all concerned agencies to consider the possible social, environmental, economic effects and cultural outcomes of the procurement procedures.

2. Implementation

New Zealand Government Procurement must always include integrity considerations as a standard contract provision.

Pre-tender phase

• The Government Procurement Rules include a requirement to consider the environmental, economic, social and cultural outcomes that could be achieved from the procurement when planning the procurement. Any such outcomes that are to be considered in the procurement must be included in the published procurement notice.

Tender phase

• According to the Government Procurement Rules, mandated government agencies must support the procurement of low-emission and low-waste goods and services, in the contract areas of vehicles, stationary heat, and office supplies.

• Regarding labour rights and worker’s protection, agencies must require their suppliers to prove that they, and their domestic supply chain, comply with all health, employment and safety requirements.

Post-tender phase

• The rules requiring consideration of secondary outcomes also include a requirement to monitor the contract and ensure that the outcomes sought are being delivered.

3. Good Practices

• New Zealand Government has a document called the Government Procurement Charter that outlines the government's expectations for how agencies conduct procurement procedures. This document includes ten directives such as the promotion of environmental responsibility, good employment practices and a risk management procedure. To support implementation of these practices, a number of good practice guides and online training modules are available to procurement officials.

• When developing the regulatory and strategic framework that includes sustainable policy objectives, New Zealand Government Procurement opened their consultation publicly to all interested stakeholders in order to give them all an opportunity to share their points of view.

• To monitor uptake of sustainable policy objectives in public procurement, the New Zealand Government is currently developing a centralised monitoring and reporting framework.