The government's Rules of Sourcing will be mandatory for Crown entities from 1 February 2015. The coverage of the rules has been extended by a direction from the Ministers of State Services and Finance under recent amendments to the Crown Entities Act 2004.

The rules will also be mandatory for Crown entity companies, companies established under schedule 4 of the Public Finance Act 1989 and Crown Research Institutes.

At present, these entities are expected to have regard to the rules as good practice. The only organisations currently required to comply with the rules are Government departments, New Zealand Police and New Zealand Defence Force.

The wider application of the rules is aimed at achieving greater efficiencies in government procurement, through greater consistency in procurement practices between government agencies and the wider application of the best practice requirements set out in the rules. It is also expected to provide greater opportunities for New Zealand businesses.

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