NZ Shifts Focus to Needs-Based Public Services and Merit-Based Contracts

The Government is reinforcing its commitment to ensuring public services are targeted based on the needs of all New Zealanders.

The New Zealand Government has announced new policy directives aimed at ensuring public services are provided based on need and government contracts are awarded based on public value, according to Minister for the Public Service, Nicola Willis.

A circular from the Cabinet Office has been issued to central government organisations, outlining expectations for needs-based service provision. The Government is reinforcing its commitment to ensuring public services are targeted based on the needs of all New Zealanders.

"This directive reflects commitments made in the coalition agreements between the National Party, ACT Party, and New Zealand First Party," said Nicola Willis.

The Government's concern is that, without this guidance, agencies may rely on ethnic identity or other personal factors as a proxy for need, potentially leading to targeted services that may not fully align with actual need. The new policy requires agencies to provide a strong analytical basis for any targeted services, ensuring that all relevant variables, not just ethnic identity, are considered when assessing need.

In addition to public services, the Government has also revised the framework for awarding government contracts. The previous target of 8% of contracts being awarded to Māori businesses has been removed, in favor of a merit-based approach. The Government aims to prevent any perception of discrimination and ensure a fair and equal playing field for all suppliers.

While the target has been removed, the Government continues to encourage Māori businesses to compete for and win contracts. Ministers for Māori Development, Economic Development, and Regional Development will report back to Cabinet next year with recommendations to further support a diverse range of small and medium-sized Kiwi businesses in securing government contracts that generate value for communities.