Clare Curran

Wellington, July 14 NZPA - Employers and unions are backing a Labour MP's bill that would give local businesses an edge when they tender for big government projects.

Dunedin South MP Clare Curran's member's bill would set up a commission of inquiry that would compare government procurement policies with those in Australia and other countries.

It would find out whether the Government could give preference to local manufacturers without breaching international trade obligations.

Ms Curran says other countries have procurement policies which recognise that value for money is about broader economic benefits, not just about the lowest price.

The Manufacturers and Exporters Association said the bill was a good idea and the issue needed to be taken further.

"This is really all about local spillover benefits from Crown spending that are not achieved when the Crown buys imports", said the associations chief executive John Whalley.

"A Kiwi Jobs Commission would make a contribution -- given the right skills and the determination to really implement those considerations across Crown procurement policy."

The Council of Trade Unions said the bill was "a modest start" which it hoped would lead to a government procurement policy that promoted New Zealand industry and jobs.