Source: Taxpayers Union
Tender quota for Māori business
22 JULY 2020FOR IMMEDIATE RELEASE
According to RNZ, Māori Development Minister Nanaia Mahuta wants a quota of 16% of spending on roading and construction tenders to be made exclusively available for Māori businesses.The Taxpayers’ Union warned media last year that the Government was considering such a policy, and says it’s dodgy as hell.Union Executive Director Jordan Williams says: “If a Minister was found to be handing out government contracts on the basis of iwi connections, it would be considered corrupt. But Nanaia Mahuta seems to think she can avoid this accusation by enshrining the practice in Government policy.”“When the Government issues a tender, its sole concern should be value for taxpayers – not using procurement process as a chance to do favours for mates or politically-connected businesses.”“The concept of ‘Maori business’ is ill-defined and creates opportunities for corporates to gain unfair commercial advantage over competitors based on loose affiliations with iwi. This policy will also result in lower quality services as the Government abandons more reliable service providers in order to meet a quota.”“Iwi like Ngāi Tahu and Tainui are multi-billion dollar enterprises, and already enjoy a discounted corporate tax rate. They don’t need any more special treatment.”
