The New Zealand government is planning to scrap rules that require government agencies to buy electric vehicles (EVs). This is part of a wider plan to change how the government awards contracts, making it easier for local businesses to compete.
Currently, government agencies must choose battery electric vehicles (BEVs) or plug-in hybrid electric vehicles (PHEVs) if a BEV is not suitable. This rule was part of New Zealand’s Carbon Neutral Government Program, which sought to cut emissions and help the country reach net zero by 2050.
However, Economic Growth Minister Nicola Willis says these changes will remove unnecessary rules. It will also open up more opportunities for Kiwi businesses.
“The changes include introducing a new economic benefit test and scrapping 24 rules that put unnecessary obstacles in the path of Kiwi businesses,” Willis says.
“This is part of our plan to increase jobs and incomes by shifting New Zealand to a faster growth track.”
The new economic benefit test will require government agencies to consider how their contracts help the wider economy. The government also plans to cut the number of mandatory rules for contracts from 71 to 47.
“Reducing the number of rules will streamline and simplify the process for New Zealand businesses,” Willis says.
“I know from my conversations with businesspeople that many find the paperwork involved in bidding for government contracts daunting. This will reduce the barriers that smaller and medium-sized New Zealand businesses face bidding for government contracts.”
The proposed changes are open for public consultation until 8 April. After that, the government will review feedback before making final decisions.
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