Photo: 123RF
Government agencies have been directed to use wool in the construction and refurbishment of their buildings "where practical and appropriate".
Economic Growth Minister Nicola Willis and Agriculture Minister Mark Patterson made the announcement at Parliament on Wednesday, alongside New Zealand First leader Winston Peters.
The change in procurement rules - beginning 1 July - delivers on an NZ First-National Party coalition agreement to make wool the preferred option in government buildings.
Patterson said the new requirements would demonstrate the government's support for the wool industry and farmers.
"We're walking the talk. This move will hopefully inspire private businesses to follow suit."
Willis added that the move would help increase jobs and employment by providing more opportunities for local wool producers.
"The new requirement will encourage innovation in the building materials industry which will lead to more investment and new markets opening up."
The new procurement requirements will apply to about 130 agencies, covering the construction of government-owned buildings that cost $9 million or more, and refurbishments of more than $100,000.
Both ministers used the announcement to sing the praises of woollen fibres, whether in carpet, upholstery, insulation or acoustic panels.
Willis noted sustainability and health benefits.
"Wool's natural qualities allow it to dampen sound and absorb pollutants, and woollen fibres contribute to healthier indoor environments by naturally regulating humidity and improving air quality."
Patterson said the sector contributed $549m to the economy in the financial year ending 2024 from exporting processed and unprocessed wool products.
"Wool has been synonymous with New Zealand since the early settlers bought sheep here 200 years ago, and New Zealand remains the world's third largest wool producer after China and Australia, and accounts for about 9 percent of total world wool production."
Patterson said the industry had been through a tough time of late due to competition from synthetic fibres in global markets and a decline in sheep numbers.
"The sector is turning the tide with wool prices now covering the shearing costs, but we know there is more to be done."
The government procurement rules are also undergoing a wider review to "remove red tape".
'Make wool great again'
NZ First leader Winston Peters called the policy a "no-brainer".
"Uptake of woollen fiber products by government agencies can help drive employment and regional development and world products, production locations, as well as encouraging sustainability and innovation in the building materials industry."
Winston Peters. Photo: RNZ / Reece Baker
Peters said New Zealand wool was the highest quality in the world and "highly sought after."
"We are putting New Zealand wool first again," he said.
Labour leader Chris Hipkins said the government is "all over the show" when it comes to its procurement guidelines.
"It was only a few months ago they were saying that schools and house builds needed to be done as cheaply as possible and they should use the cheapest materials possible, now they're saying they should be using wool."
Hipkins said the government's decision-making is based around "which minor party is more dominant on the day."
He said New Zealand First was "getting their way on wool", a position Hipkins agreed with.
"But clearly, if they took that same position on things like school lunches, they'd still be having quality locally produced fresh school lunches.
"They're not doing that, and I think that's a tragedy."
Hipkins said using New Zealand based products is going to be better for the New Zealand economy.
Willis responded to Peters, saying "let's make wool great again".
She said the announcement was part of the government's "broader growth agenda".
"It's another action in our plan to strengthen the New Zealand economy and make this a more prosperous country in a world that is daily becoming more complex."
She said the directive will apply to new construction projects worth more than $9 million and to refurbishments worth more than $100,000, from 1 July.
"The factors agencies should consider when determining how to interpret this directive and whether the use of woolen products is practical and appropriate include cost, including whole of life, cost, compliance with New Zealand standards, technical and functional requirements, where wool performs particularly well, availability, sustainability and wellbeing."
Agencies that choose not to use woollen products will have to explain why, she said, report annually to MBIE and have "clear records and articulation for their reasons for not doing so".
"It's our hope there won't be very many reports like that."
It will apply to public sector spending across 130 agencies.
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