New Plymouth Council Aims to Save Money and Empower Māori Through Local Procurement
New Plymouth Council Aims to Save Money and Empower Māori Through Local Procurement
New Plymouth District Council (NPDC) is taking a bold step to boost local economic growth, support Māori businesses, and reduce costs by shifting toward a more localized procurement strategy. The proposal, which has sparked both optimism and caution, could save the council up to $500,000 over three years while also promoting environmental and cultural values.
The council's move comes as local governments across New Zealand face pressure to operate more efficiently, with concerns about potential rate caps and budget constraints. A year ago, NPDC asked its staff to explore whether spending more locally could bring financial and social benefits. Now, a new procurement strategy is being considered, promising significant savings and broader advantages.
According to Sudeha Hennayaka, the procurement and commercial service manager at NPDC, the strategy is designed to deliver value for money while supporting local prosperity, environmental excellence, and cultural values. She emphasized that the approach is not just about saving money but also about creating a more sustainable and inclusive future.
However, the plan is not without its challenges. Council members were initially skeptical about the potential savings and the feasibility of the strategy. The final details will be finalized after the October local elections, when a new council will take over and decide on the final policies.
One of the key elements of the strategy is its focus on Māori and minority-owned businesses. A previous strategy had called for greater Māori participation, but it lacked practical pathways for doing so. The new plan aims to address this by strengthening relationships with iwi, hapū, and whānau, creating employment opportunities, and enhancing cultural resilience.
Max Brough, a mayoral candidate, has been a long-time advocate for using local businesses. He said that while the idea of favoring local businesses is not new, it has often been dismissed due to perceived difficulties. “There are many people in this town who have been trying to get a foot in the door for a long time,” he said, adding that early engagement with local businesses is crucial for the success of the new strategy.
The strategy also includes a commitment to a more modern, outcomes-focused approach. This includes structured governance, whole-of-life costing, and improved contract management. However, some council members have raised concerns about balancing cost savings with long-term cultural and environmental gains.
Mayor Neil Holdom acknowledged that the council has historically taken on risks without proper assessment. He called for a shift toward more mature procurement practices, emphasizing the need to consider whole-life cycle costs and better contract management.
The procurement strategy will now be reviewed by several council committees before a final decision is made on 12 August. If approved, the plan could set a new standard for how local councils operate, combining financial prudence with social and environmental responsibility.
