Wool rules: Government orders agencies go fleece first

Wednesday, 9 April 2025

New Zealand’s wool industry is getting a fresh spin, with the Government announcing a new directive that all government agencies prioritise wool where practical and possible in government buildings.

The policy, which takes effect from July 1, is a major win for the sector - it means all government new builds over $9 million and refurbishments over $100,000 must incorporate woollen fibres in construction and design wherever feasible.

The directive follows through on a coalition agreement between National and New Zealand First, with Deputy Prime Minister Winston Peters celebrating the move he’s long championed.

“We’re putting New Zealand wool first — again,” Peters said, calling the policy a “no brainer”.

Government departments that opt not to use wool will have to report annually to the Ministry of Business, Innovation and Employment (MBIE), explaining why wool wasn’t used.

The move has been warmly welcomed by industry leaders.

“Today is a big day for wool,” said Andy Caughey from Wool Impact.

However, there is a caveat — the directive doesn’t explicitly require the use of New Zealand wool.

Peters, though, is confident the policy will favour Kiwi product.

When asked whether the rules guarantee the use of domestic fibre, he responded with “take a wild guess”.

The directive comes on the heels of controversy around previous government building contracts.

In 2023, roughly 800 New Zealand schools missed out on local wool carpets after the Ministry of Education awarded an $8 million deal to a US firm making synthetic carpets from fossil fuels.

That decision was supported at the time by then-Opposition leader Christopher Luxon, now Prime Minister, who acknowledged wool as a great product but prioritised value for taxpayers.

This isn’t the first time wool policy has stirred political friction, either - former prime minister Bill English previously argued that the market should determine wool’s viability.

“It’s up to the industry to produce a product that the customers want,” he said in 2017, while Peters was on the campaign trail pushing this policy.

Even practical concerns have come into play.

In 2016, former National leader and minister Simon Bridges once had to carry a spray bottle to avoid static shocks from new woollen carpet in his Beehive office, and put tape on the doorhandles.

Despite the policy’s long-awaited arrival, there's no formal estimate yet on the economic impact for the wool industry.

But stakeholders like Roger Green from Maxwell Rodgers Fabrics are optimistic.

“It annoys me that when I’m in New York City I get a better reception than I do when I’m in this city. Hopefully this announcement will change that.”