RESTRICTED  
  
GPA/ACC/NZL/6  
 
5 February 2013  
(13-0606)  Page: 1/15  
Committee on Government Procurement  Original: English  
 
 ACCESSION OF NEW ZEALAND TO THE  
AGREEMENT ON GOVERNMENT PROCUREMENT 
 
COMMUNICATION FROM THE EUROPEAN UNION 
The following communication, dated 31 January 2013, is being circulated at the request of the 
Delegation of the European Union. 
 
_______________ 
 
COMMENTS FROM THE EUROPEAN UNION FOR IMPROVEMENTS IN THE  
APPENDIX I OFFER OF NEW ZEALAND (GPA/ACC/NZL/1) 
 
The EU congratulates New Zealand (NZ) for its effo rts to accede to the Agreement on Government 
Procurement via submitting its Initial Offe r of 1 October 2012 (GPA/ACC/NZL/1). The EU 
appreciates some very positive elements of New Zealand's first offer, such as: a wide coverage of central entities, a comprehensive offer of good s and services and construction services and 
thresholds corresponding to the GPA ones. 
The EU hereby submits its comments seeking furt her improvements in New Zealand's Appendix I 
offer. The EU reserves the right to withdraw, amen d, reduce or extend its revised request in the 
light of negotiations with New Zealand and the revised requests from other GPA Parties. 
The EU would welcome a number of changes in New Zealand offer to match the level of the EU 
commitments under the GPA. The improvements th at the EU considers necessary are indicated 
below, complemented by the comments indicated in  the track changed version of the NZ offer, 
which is set out below. 
Entities covered The EU considers that New Zealand should ensure the widest possible coverage of entities in its 
future commitments under the GPA. 
The EU notes that New Zealand has opted for a posi tive list of entities covered under Annex 1. 
While the EU appreciates that New Zealand has offered its core public service Departments, the EU believes that the proposed coverage under Annex 1 sh ould take the form of a catch all clause with 
a generic definition and an indicative list of entities covered. The EU notes that New Zealand has 
offered, in addition to the Departments, some en tities such as the Police and the Defence Force. 
The EU considers that independent entities such as the New Zealand Security Intelligent service 
and the Reserve Bank of New Zealand, performing regulatory functions should also be covered in 
Annex I. 
In addition, the EU asks New Zealand to include coverage of the corresponding entities under 
Annex 2 (sub-central level entities) and Annex 3 (other entities/utilities), respectively. GPA/ACC/NZL/6 
 
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  The EU would like to point out that the schedule of the EU offer contains in Annex 2 a generic 
definition of sub-central level entities (split into two categories: regional and local level entities and bodies governed by public law) with an indicative list. This approach results in full coverage of the EU sub-central level entities. The EU is able to offer the full coverage of those entities on a 
reciprocal basis. 
The EU considers that Annex 2 of New Zealand's offe r should include entities belonging to the local 
and regional government sector, such as regional councils, city councils and district councils. 
In addition, the EU notes that in New Zealand a very substantive number of agencies operate, 
within the State Service umbrella, as instruments of the Crown in respect of the Government of New Zealand and form part of the Government reporting entity ("Crown Entities"). We understand that those entities provide core services and perform various public functions such as in the fields 
of health, education, tourism, social housing and pu blic good research and that they are subject to 
government directions. We understand that even those crown entities that are registered as companies (such as Radio New Zealand, Television New Zealand, etc.) are not fully commercial 
and pursue mainly public objectives. The EU considers that crown entities correspond to the EU 
category of bodies governed by public law, offere d in its Annex 2. For those reasons, the EU would 
request that New Zealand insert in its Annex 2 any entities which is substantially controlled by, 
dependent on, or influenced by central, regional  or local government, and which pursue public 
objectives, not engaged in commercial or industrial activities. An indicative list of such entities has been inserted in track changes. 
I n  i t s  A n n e x  3 ,  t h e  E U  o f f e r s  c o v e r a g e  o f  those contracting authorities and those public 
undertakings that operate in the so called "utiliti es" business (the EU definition of the relevant 
activities has been inserted as indication). Th e EU understands that the category of public 
undertakings largely corresponds to the so-called "state-owned enterprises" in New Zealand (and 
their sub-ordinated entities), which are owned by the Government. 
The EU invites New Zealand to include in its Annex 3 those state own undertakings and any other 
entities (including those which are substantially controlled by, dependent on, or influenced by 
central, regional or local government) active in the "utilities" sectors. An indicative list of such 
entities has been inserted in track changes. 
Additionally, the EU considers that New Zealan d should offer in Annex 3 any other companies 
whose procurement policies are substantially controlled by, dependent on, or influenced by central, 
regional or local government. An indicative list of such entities has been inserted in track changes. 
Also, for greater certainty, the EU has introduc ed, in its schedule, a note under Annex 1 and 
Annex 2, which clarifies that all subordinated entities, e.g. entities which do not have separate 
legal personality but are subordinated to entities under Annex 1 and Annex 2, are included. The EU 
asks New Zealand to adopt the same approach. 
Goods covered 
The EU welcomes New Zealand's offer on goods. 
Services covered The EU welcomes New Zealand's o ffer on construction services. 
Construction services covered 
The EU welcomes New Zealand's o ffer on construction services. 
General Notes The EU invites New Zealand to clarify the list of exceptions and derogations. In particular: 
a. in cases covered under i. the exception appears too broad; GPA/ACC/NZL/6 
 
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  b. further clarifications would be needed to understand the difference between the scope of 
the exception under ii. and the exception under iii.; 
c. as to commercial sponsorship agreements, in our view this would not fall under the 
definition of public procurement, some clarifications would be welcome;  
d. with regard to the drafting of exceptions und er v. and vi., the EU understands that this 
refers to the "in-house exception"; the EU would like to receive confirmation that this is the case and further clarifications about the difference between the exception under vi. 
and the exception under v. GPA/ACC/NZL/6 
 
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  NEW ZEALAND 
(Authentic in the English Language) 
ANNEX 1 
CENTRAL GOVERNMENT ENTITIES 
Unless otherwise specified, this Agreement covers procurement by entities listed in this Annex, 
subject to the following thresholds: 
Thresholds: 
 
Goods (specified in Annex 4)      SDR 130,000 
 Services  (specified in Annex 5)     SDR 130,000 
 
Construction Services  (specified in Annex 6)   SDR 5,000,000 
 
 
List of Entities:  
All central government entities including: 
1. Ministry for Primary Industries 
2. Canterbury Earthquake Recovery Authority 3. Department of Conservation 
4. Department of Corrections 
5. Crown Law Office 6. Ministry of Business, Innovation and Employment 
7. Ministry for Culture and Heritage 
8. Ministry of Defence 9. Ministry of Education 
10. Education Review Office 
11. Ministry for the Environment 12. Ministry of Foreign Affairs and Trade 13. Government Communications Security Bureau 
14. Ministry of Health 
15. Inland Revenue Department 16. Department of Internal Affairs 
17. Ministry of Justice 
18. Land Information New Zealand 19. Ministry of M āori Development 
20. New Zealand Customs Service 
21. Ministry of Pacific Island Affairs 22. Department of the Prime Minister and Cabinet 23. Serious Fraud Office 
24. Ministry of Social Development  
25. State Services Commission 26. Statistics New Zealand 
27. Ministry of Transport 
28. The Treasury 29. Ministry of Women's Affairs 
30. New Zealand Defence Force 
31. New Zealand Police 32. New Zealand Security Intelligence Service 
33. Reserve Bank of New Zealand 
  GPA/ACC/NZL/6 
 
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  Note to Annex 1 
Unless otherwise specified in this Annex, all agencies, units or bodies subordinated to the entities 
covered under this Annex are covered by this Agreement. GPA/ACC/NZL/6 
 
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  ANNEX 2 
 
SUB-CENTRAL GOVERNMENT ENTITIES 
Not applicable – New Zealand does not have Sub-Central Government entities. 
Thresholds: 
 
Goods  (specified in Annex 4)      SDR 200,000 
 
Services  (specified in Annex 5)     SDR 200,000 
 
Construction  (specified in Annex 6)      SDR 5,000,000 
 
 List of Entities: 
 All sub-central government entities including those operating at the local, regional or municipal 
level and those whose procurement policies are substantially controlled by, dependent on, or 
influenced by central, regional or local government and which are engaged in non-commercial or 
non-industrial activities including the following: 
 Regional councils: 
Bay of Plenty Regional Council 
Canterbury Regional Council 
Hawke's Bay Regional Council 
Manawatu-Wanganui Regional Council 
Northland Regional Council 
Otago Regional Council 
Southland Regional Council 
Taranaki Regional Council 
Waikato Regional Council 
Wellington Regional Council 
West Coast Regional Council 
 
 City councils: 
Christchurch City Council 
Dunedin City Council 
Hamilton City Council 
Hutt City Council 
Invercargill City Council 
Napier City Council 
Nelson City Council 
Palmerston North City Council 
Porirua City Council 
Tauranga City Council 
Upper Hutt City Council 
Wellington City Council 
 
 District councils including: 
Carterton District Council 
Central Hawke's Bay District Council 
Far North District Council 
Gisborne District Council 
Hastings District Council 
Hauraki District Council GPA/ACC/NZL/6 
 
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  Horowhenua District Council 
Kaipara District Council 
Kapiti Coast District Council 
Kawerau District Council 
Manawatu District Council 
Masterton District Council 
Matamata-Piako District Council 
New Plymouth District Council 
Opotiki District Council 
Otorohanga District Council 
Rangitikei District Council 
Rotorua District Council 
Ruapehu District Council 
South Taranaki District Council 
South Waikato District Council 
South Wairarapa District Council 
Stratford District Council 
Tararua District Council 
Taupo District Council 
Thames-Coromandel District Council 
Waikato District Council 
Waipa District Council 
Wairoa District Council 
Waitomo District Council 
Wanganui District Council 
Western Bay of Plenty District Council 
Whakatane District Council 
Whangarei District Council 
Ashburton District Council 
Buller District Council 
Central Otago District Council 
Chatham Islands Council 
Clutha District Council 
Gore District Council 
Grey District Council 
Hurunui District Council 
Kaikoura District Council 
Mackenzie District Council 
Marlborough District Council 
Queenstown-Lakes District Council 
Selwyn District Council 
Southland District Council 
Tasman District Council 
Timaru District Council 
Waimakariri District Council 
Waimate District Council 
Waitaki District Council 
Westland District Council 
 
 Unitary authorities including: 
Auckland Council 
 
 Crown entities: 
 Crown agents: 
Accident Compensation Corporation 
Careers New Zealand 
Civil Aviation Authority of New Zealand 
District Health Boards  
Earthquake Commission GPA/ACC/NZL/6 
 
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  Education New Zealand  
Energy Efficiency and Conservation Authority 
Environmental Protection Authority 
Health Promotion Agency 
Health Quality and Safety Commission 
Health Research Council of New Zealand 
Housing New Zealand Corporation 
Maritime New Zealand 
New Zealand Antarctic Institute 
New Zealand Blood Service 
New Zealand Fire Service Commission 
New Zealand Qualifications Authority 
New Zealand Tourism Board 
New Zealand Trade and Enterprise 
New Zealand Transport Agency 
New Zealand Walking Access Commission 
Pharmaceutical Management Agency 
Real Estate Agents Authority 
Social Workers Registration Board 
Sport and Recreation New Zealand 
Tertiary Education Commission 
 
 Autonomous Crown Entities: 
Arts Council of New Zealand Toi Aotearoa 
Broadcasting Commission 
Families Commission 
Government Superannuation Fund Authority 
Guardians of New Zealand Superannuation 
Museum of New Zealand Te Papa Tongarewa Board 
New Zealand Artificial Limb Board 
New Zealand Film Commission 
New Zealand Historic Places Trust (Pouhere Taonga) 
New Zealand Lotteries Commission 
New Zealand Symphony Orchestra 
New Zealand Teachers Council 
Public Trust 
Retirement Commissioner 
Standards Council 
Te Reo Whakapuaki Irirangi (Maori Broadcasting Funding Agency) 
Te Taura Whiri I Te Reo Ma - ori (Maori Language Commission) 
Testing Laboratory Registration Council 
 
 Independent crown entities: 
Broadcasting Standards Authority 
Children's Commissioner 
Commerce Commission 
Drug Free Sport New Zealand 
Electoral Commission 
Electricity Authority 
External Reporting Board 
Financial Markets Authority 
Health and Disability Commissioner 
Human Rights Commission 
Independent Police Conduct Authority 
Law Commission 
New Zealand Produc tivity Commission 
Office of Film and Literature Classification 
Privacy Commissioner 
Takeovers Panel 
Transport Accident Investigation Commission  GPA/ACC/NZL/6 
 
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 Crown entities companies: 
 Crown Research Institutes: 
AgResearch Limited 
Industrial Research Limited 
Institute of Environmental Science and Research Limited 
Institute of Geological and Nuclear Sciences Limited 
Landcare Research New Zealand Limited 
National Institute of Water and Atmospheric Research Limited 
New Zealand Forest Research Institute Limited 
New Zealand Institute for Plant and Food Research Limited, 
 
 Other companies: 
New Zealand Venture Investment Fund Limited 
Radio New Zealand Limited 
Television New Zealand Limited 
 
 Crown entity subsidiaries 
 School Boards of Trustees 
 Tertiary Education Institutions (Universities ,Polytechnics/Institutes of Technology, 
Wananga (Maori education institute)) 
 Public Finance Act Schedule 4 organisations 
 
Note to Annex 2 
All other entity subordinated to the entities under Annex 2 that do not have a legal personality are 
covered, unless otherwise provided. 
 GPA/ACC/NZL/6 
 
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  ANNEX 3 
OTHER ENTITIES/UTILITIES 
None. 
 
 
Thresholds: 
 
Goods (specified in Annex 4)      SDR 400,000 
 
Services  (specified in Annex 5)     SDR 400,000 
 
Construction Services  (specified in Annex 6)   SDR 5,000,000 
 
 
List of Entities: 
 
 Entities in the utilities sector 
Entities which exercise one or more of the utilities activities referred to below and in respect of 
contracts awarded for the pursuit of any of those activities. These include entities which are 
substantially controlled by, dependent on, or influe nced by central, regional or local government, 
which are engaged in commercial or industrial activi ties in one or more of the sectors referred to 
above, including for example council controll ed organisations. The activities include: 
a. the provision or operation of fixed networks intended to provide a service to the public in 
connection with the production, transport or distribution of drinking water or the supply 
of drinking water to such networks; 
b. the provision or operation of fixed networks intended to provide a service to the public in 
connection with the production, transport or distribution of electricity or the supply of 
electricity to such networks; 
c. the provision of airport or other terminal facilities to carriers by air; 
d. the provision of maritime or inland port or other terminal facilities to carriers by sea or 
inland waterway; 
e. the provision or operation of networks1 providing a service to the public in the field of 
transport by urban railway, automated system s, tramway, trolley bus, bus or cable. 
f. the provision or operation of networks providing a service to the public in the field of 
transport by railways.2 
Those entities include: 
 Electricity 
Electricity Corporation of New Zealand Limited  
Genesis Power Limited 
Meridian Energy Limited 
Transpower New Zealand Limited 
                                               
1 As regards transport services, a network shall be considered to exist where the service is provided 
under operating conditions laid down by a competent authority of an EU Member State, such as conditions on 
the routes to be served, the capacity to be ma de available or the frequ ency of the service. 
2 E.g. the provision or operation of networks providing a service to the public in the field of transport by 
high-speed or conventional trains. GPA/ACC/NZL/6 
 
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  Mighty River Power Limited 
Solid Energy New Zealand Limited 
 
 Railways 
New Zealand Railways Corporation including KIWIRAIL 
 Post 
New Zealand Post Limited 
 Airports 
Airways Corporation of New Zealand Limited 
Christchurch International Airport Ltd 
Dunedin International Airport Ltd 
Hawke's Bay Airport Ltd 
Invercargill Airport Ltd 
 
 Other entities 
Any other companies whose procurement policies are substantially controlled by, dependent on, or 
influenced by central, regional or local government. Those include state owned undertaking such 
as: 
Kordia Group Limited 
AsureQuality Limited 
Animal Control Products Limited 
Learning Media Limited 
Meteorological Service of New Zealand Limited 
Landcorp Farming Limited (business function is the sustainable management of a profitable 
farming business) 
Quotable Value Limited (establishes value of property, active in property sector) 
 GPA/ACC/NZL/6 
 
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  ANNEX 4 
GOODS 
Unless otherwise specified, this Agreement covers pr ocurement of all goods by the entities listed in 
Annexes 1 through 3. GPA/ACC/NZL/6 
 
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  ANNEX 5 
SERVICES 
1.  Unless otherwise specified, this Agreement cove rs procurement of all services by the entities 
listed in Annexes 1 through 3. 
2.  This Agreement does not cover any of the foll owing services as identified in accordance with 
the Provisional Central Product Classification (CPC) as set out in document MTN.GNS/W/120: 
a. procurement of research and development services (CPC 851-853); 
b. procurement of public health services  (CPC 931, including 9311, 9312 and 9319); 
c. procurement of education services (CPC 921, 922, 923, 924, and 929); 
d. procurement of welfare servic es (CPC 933 and 913); and 
e. procurements listed in Annex 7. GPA/ACC/NZL/6 
 
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  ANNEX 6 
CONSTRUCTION SERVICES 
Unless otherwise specified, this Agreement covers procurement of all construction services in 
Division 51 of the Provisional Central Product Classification (CPC) as set out in document 
MTN.GNS/W/120. 
 GPA/ACC/NZL/6 
 
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  ANNEX 7 
GENERAL NOTES 
The following General Note applies without exception to this Agreement, including to Annexes 1 
through 6. 
This Agreement does not cover: 
i. governmental provision of goods and services; 
ii. i. procurement of goods or services in respect of contracts for construction, 
refurbishment or furnishing of chanceries abroad; 
iii. ii. procurement of goods or services outside the territory of New Zealand for 
consumption outside the territory of New Zealand; 
iv. iii. commercial sponsorship arrangements; 
v. iv. any procurement made by an entity covered under this Appendix on behalf of 
an organization that is not an entity covered under this Appendix;. 
vi. procurement by an entity covered under th is Appendix from another entity covered 
under this Appendix. 
 
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