Labour is promising to open up government contracts to more small businesses as it steps up its pitch to Kiwi business owners ahead of the 2026 election.
The party says smaller firms are too often locked out of government procurement opportunities despite playing a major role in the New Zealand economy.
Under its proposal, a Labour Government would change procurement settings to make it easier for smaller New Zealand businesses to compete for government work.
Labour finance and economy spokesperson Barbara Edmonds says the policy is about ensuring more taxpayer spending flows through local businesses and communities rather than being concentrated among large suppliers.
The procurement proposal forms part of Labour’s wider Small Business Action Plan, which includes measures aimed at improving cash flow and encouraging businesses to invest.
Labour has already announced plans requiring large companies to pay small suppliers within 15 days for invoices worth $25,000 or less.
Large businesses would also have to publish information showing how quickly they pay their suppliers, giving smaller operators greater visibility before accepting work.
Labour is also proposing an immediate tax write-off for up to $10,000 of new equipment purchased by eligible small businesses from July 2027.
Around 500,000 businesses could qualify for that measure.
The party says opening government procurement to more small operators would provide another avenue for businesses to grow, take on workers and build a track record for securing larger contracts.
Government procurement represents a significant pool of taxpayer spending, covering everything from construction and technology to professional services, maintenance and everyday goods.
The policy also puts government purchasing power into the election-year economic debate, with Labour arguing taxpayer dollars should do more than simply purchase a service and should also help strengthen New Zealand businesses.
Small business is emerging as another key election battleground as political parties compete to convince owners they have the best plan for reducing costs, encouraging investment and getting the economy moving.
For Labour, the message is that when the Government opens its chequebook, more Kiwi small businesses should have the opportunity to compete for a share.
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