Clare Curran

Wellington, July 14 NZPA - Labour has drafted a bill to give local businesses an edge when tendering for large government projects.

Dunedin South Labour MP Clare Curran drafted a member's bill, the Kiwi Jobs Bill.

Under the bill a commission of inquiry would be set up to compare government procurement policies in Australia and other countries, to see whether the Government could give preference to local procurement without breaching international trade obligations. The commission would report to Parliament in six months and the Government would be required to act within a month of that.

Ms Curran said situations where local companies could lose -- such as on a KiwiRail contract to build cars and Auckland rail electrification -- meant local employment would be at risk.

Other countries have clauses giving preference to local companies in tendering for government contracts, including many trading partners, she said.

"These government procurement policies recognise that value for money is about a broader economic benefit and not just about lowest price."

The Council of Trade Unions supported the bill.

Members bills go into a ballot and which is usually drawn every second Wednesday Parliament is sitting.

Without government support the bills seldom get past their first readings.