Answer extracted from the The Otago Opportunity podcast — listen to the full episode below.
How can New Zealand strengthen social procurement through legislation?
New Zealand should convert social procurement from policy into law, with dedicated government funding and compliance monitoring mechanisms—just as Australia and Canada have done. Currently, social procurement lacks enforcement teeth because companies face no real consequences if they fail to deliver on social outcomes, and government agencies lack resources to track implementation.
Policy versus law: why the distinction matters
The gap between policy and legislation sits at the heart of Raymond Clark's recommendation. In Australia and Canada, social procurement operates as legal requirement: companies must deliver on agreed social outcomes or face consequences. As Clark explains in the episode, New Zealand treats social procurement as guidance rather than mandate, which means compliance remains voluntary.
When a company cannot meet social procurement targets under policy alone, no one monitors or enforces accountability. The government department responsible lacks the budget to track outcomes across contracts, leaving social goals essentially unmonitored—regardless of how well-intentioned the original procurement framework may be.
The funding barrier to enforcement
Clark identifies a crucial constraint: even if New Zealand wanted to strengthen enforcement, it has no dedicated resources to do so. He notes that government budgets are already stretched thin on essential services. Moving from policy to law requires not just a legislative change but also sustained funding for monitoring and accountability functions—something that has proven difficult for agencies already operating under financial strain.
The practical reality, discussed at length in this podcast conversation, is that without ring-fenced funding and a dedicated monitoring body, even a well-written law will lack teeth. Clark's position reflects hard experience: legislating outcomes without the means to verify them remains merely aspirational.
Raymond Clark — Operations Manager at Workforce Central Dunedin. Clark brings deep expertise in workforce development and job creation from his prior work at the Department of Corrections and his training as a primary school teacher. Under his leadership, Workforce Central Dunedin has placed 312 people into employment and trained approximately 1,300 people in various skills since its inception around 2017-2018.
To understand how this framework plays out in practice, consider how Workforce Central Dunedin itself navigates social procurement requirements on the hospital build—a real-world test case for what Clark advocates.
See also
What funding challenges does Workforce Central Dunedin face after the hospital build completes?
The MSD funding ended in December last year, with the Ministry having been clear that the funding was seed funding and would not continue. Workforce Central Dunedin must now secure alternative sources of funding to sustain operations.
What is the size difference between the outpatients and inpatients builds of Dunedin Hospital?
The inpatients build is approximately five times the size of the outpatients build in terms of floor space and will be 11 stories high. This larger scale significantly impacts workforce and supply chain requirements.
What awards and recognition has Workforce Central Dunedin received?
Workforce Central Dunedin won an award from Kuma, a Māori business collective, for being their best business partner. The organization has also received recognition for its inclusive employment and training initiatives.