The New Zealand Government has directed its agencies to prioritize on the use of wool in the construction and renovation of their buildings wherever appropriate. Announced by Nicola Willis, Economic Growth Minister and Mark Patterson, Agriculture Minister, alongside Winston Peters, New Zealand First leader, the directive will become effective on July 1, 2025.
This change in procurement rules fulfills a coalition agreement between NZ First and the National Party that aims to make wool the preferred material in government buildings. Minister Patterson states, these new requirements demonstrate the government's commitment to supporting the wool industry and farmers, expressing hope that private businesses will follow suit.
Minister Willis adds, this initiative will stimulate job creation and employment by generating more opportunities for local wool producers. She also anticipates, the new requirement will foster innovation within the building materials industry, leading to increased investment and the opening of new markets.
These new procurement guidelines will apply to approximately 130 government agencies, covering new government-owned building projects costing $9 million or more and refurbishments exceeding $100,000. Both ministers emphasized on the benefits of wool fibers in various applications, including carpet, upholstery, insulation, and acoustic panels.
Highlighting the sustainability and health advantages of wool, Willis notes its natural sound-dampening and pollutant-absorbing qualities. Wool fibers contribute to healthier indoor environments by naturally regulating humidity and improving air quality, she pointed out
Minister Patterson states, the wool sector contributed $549 million to the New Zealand economy in FY2024 through the export of processed and unprocessed wool products. He emphasizes on the fiber’s historical significance to New Zealand and its current position as the world's third-largest wool producer. While acknowledging recent challenges faced by the industry due to competition from synthetic fibers and declining sheep numbers, Patterson states, the sector is showing signs of recovery with improved wool prices.
Hailing the policy as a ‘no-brainer, Winston Peters, NZ First leader, emphasizes on its potential to drive employment, regional development, and sustainability within the building materials industry. Asserting on the high quality of New Zealand wool, he declares, the government is again prioritizing on New Zealand wool
However, Chris Hipkins, Labour Leader criticizes the government's procurement approach as being inconsistent. He questiones the government's broader priorities.
Minister Willis clarifies, agencies choosing not to use wool products will need to provide justification and report annually on their decisions. The directive will apply to public sector spending across 130 agencies, with factors such as cost, compliance, technical requirements, availability, sustainability, and wellbeing to be considered when determining the practical and appropriate use of wool.
