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NZRise Welcomes ‘Local First’ Procurement Policy

NZRise, the association of New Zealand owned digital companies, today welcomed the Labour
Party’s procurement policy that includes assessment of the impact of government purchasing on the local economy.

“NZRise has lobbied all of the major parties for more than five years now to consider the net
economic benefit to the local economy of government purchasing decisions.

“The creation of local jobs, strengthening our industry and the opportunities for local businesses and the Kiwis they employ, should all be considered carefully in purchasing decisions.

“A 2011 study by Economics New Zealand found that awarding government procurement contracts
domestically sets in train further rounds of spending that boosts local incomes, generates further tax flows, and returns revenues to the government that contribute to offsetting the initial cost of the project. Amongst other things this study demonstrates that the multiplier and tax revenue effects of local procurement substantially reduce the net cost to the government of local contracts. As an example, the net cost of a $115K contract reduces to around $67K

“Preferring local suppliers means more jobs for Kiwis, a vibrant and long term future for our digitalsector and fewer high profile, expensive IT project failures run by companies with no financialstake in the future of our country.

“Government agencies buying locally makes good sense for Kiwis and leads to better outcomes for
the projects themselves,” said NZRise Co-chairs Victoria MacLennan and Don Christie. NZRise was formed in 2010 to represent the interests of New Zealand owned and operated IT companies. It has grown to include members from all over New Zealand and all parts of the digital sector. The Economics New Zealand Paper, The benefits of local IT procurement, is available on the

NZRise website

Press release PDF available here

Contact

Victoria MacLennan, Managing Director Optimal BI: 021 573 452

Don Christie, Director Catalyst IT: 021 707 814

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