Focus on Procurement interview – Martin Richardson, Director of Specialist Audit and Assurance Services at Audit New Zealand

Audit New Zealand Director of Specialist Audit and Assurance Services Martin Richardson.

Where are you from?

I’m Martin Richardson, Audit New Zealand’s Director of Specialist Audit and Assurance Services. We provide assurance over the fairness of public sector procurement to ensure everyone has an equal opportunity to compete for government business.

I’m originally from the UK but have been in New Zealand for nearly 20 years.

What did you train in and where did you study?

My first degree was in geomatics. Following that, I worked as a land surveyor for 10 years in the UK and the West Indies. That experience introduced me to the building industry, contracting, and major capital projects.

In 1992, I returned to university to pursue an MBA. Following my graduation, I joined the Audit Commission in the UK, where I evaluated the value for money (VFM) of public services in England and Wales. My work in procurement and VFM were closely linked.

A secondment opportunity brought me to New Zealand, and it was here I cemented my procurement knowledge, studying and passing the exams to achieve MCIPS. The support and encouragement of NZGP was greatly appreciated in that endeavour.

What advice would you give anyone considering a career in procurement?

A career in procurement provides an excellent opportunity to ensure public money is spent wisely, that good value is achieved for taxpayers, and that public services delivered by third-party contractors are delivered well.

If you are interested in how organisations work together, enjoy a good process, and like a mix of paperwork and relationships, procurement could be a great option.

My advice to anyone new to procurement is to ensure senior managers and governors appreciate the importance of procurement in achieving desired outcomes. You will need to advocate for the profession.

What are three things the public do not know about the role of procurement in their lives?

Three things that people might or might not know are:

• The government procures goods and services worth over $50 billion every year.
• That’s more than 10% of the entire economy that Government procurement touches.
• Many private sector firms rely on government procurement for a significant amount of their work, and many government departments rely on private and not-for-profit contractors to deliver. The economy needs procurement to be working well.

Can you please detail your top three achievements from your career – especially if they revolve around procurement?

Hard to pick just three achievements from a 40-year career, but things that stand out are:

• Working on the anchor projects as part of the Christchurch rebuild after the 2010 Canterbury earthquake. I was one of the main probity auditors, making sure procurement was fair so that it could attract the best contractors to compete for this vital work rebuilding a beautiful city.
• Working as part of the Neighbourhood Renewal Unit of the UK government, implementing a 10-year programme aimed at transforming 39 of the most deprived neighbourhoods in England. We made a real impact on the ‘wicked issues’ of crime, education, health, worklessness, community, housing, and the environment.
• I enjoy seeing projects I was involved in at the procurement stage built, open, and operating. There have been many, but the next one I am looking forward to is riding on Auckland’s City Rail Link when it opens in 2026.

In 2024, your Office released the report ‘Strengthening government procurement: Lessons from our recent work’. This report brought together findings of a multi-year work programme looking at how well the public sector managed procurement and highlighted areas where the Office considered most improvement was needed. How did the industry receive the report?

In my experience, procurement professionals always appreciate a report that recognises the importance of their work and raises the profile of the procurement profession. Our report and the six years’ worth of work that preceded it have done exactly that. So, yes, I think the report has been well received.

Since the report’s release have you seen any developments? And do those developments suggest the improvements your Office was hoping to see?

In the overview of the report, the Auditor-General John Ryan called out seven areas for improvement. Three that particularly resonated for me were:

• the importance of planning
• the need to manage conflicts of interest and, act with integrity and
• that contract management doesn’t get the attention it deserves.

Honestly, while some organisations have made improvements since the report came out, those three areas could still be done better. My work as a probity auditor tells me that actual, potential or perceived conflicts of interest continue to give rise to more risks than any other issue. Public organisations need to have a robust approach to identifying and managing risks from actual, potential or perceived conflicts of interest.

In 2020 your Office visited 21 councils throughout New Zealand to see how they carried out procurement. You then sent those councils a series of questions on procurement practice and culture. You encouraged them to reflect on those questions and, where they saw gaps, implement the necessary changes to strengthen their processes and procedures. What’s been the outcome of that work?

I don’t know about the outcome of the work, but one thing that has happened since 2021 has been the 2024 or 2025 Long Term Planning round for Local Government. The Auditor-General has just put out a report noting that councils propose to spend 34% more on their assets during 2024-34 than they did in their 2021-31 long-term plans. The report estimates there will be capital expenditure of at least $91.9 billion over the next ten years, probably more (the report only covers 58 of the 78 local authorities as some deferred their planning from 2024 to 2025).

Spending $91 billion will be a huge task for procurement staff in councils around the country. It’s also going to be a big challenge to ensure the market has the capacity to deliver 34% more work. Finally, councils need to ensure they are not competing for scarce contractor resources. That could lead to prices being driven up and poorer value for ratepayers’ money.

How can leadership in central and local organisations, and in the private sector, help their procurement teams perform well?

Treasury forecasts Core Crown Expenses for 2024/25 to be $143.9 billion. Government procurement at over $50 billion is obviously a huge proportion of that (around one third).

I think senior leaders could reflect on just how high a proportion of their budget involves procurement to secure the goods and services they need it would help ensure that the right level of resourcing goes into procurement. I would like to see more Chief Procurement Officers (CPOs) in tier 2 roles.

What is the most exciting thing happening in procurement right now?

I’m excited by some innovative procurement approaches that reduce barriers to competition and the cost of bidding for a government contract. I’m interested in things like ‘Procurement in a Day’ and ‘Lean Agile’ procurement which aim to shorten the time procurement takes and introduce more collaborative and interactive contact between buyers and suppliers. 

Lean Agile Procurement Alliance

I’m also passionate about fairness. It is important that government procurement retains the trust and confidence of suppliers and taxpayers alike.

Finally, progressive procurement is a great initiative. Through Te Puni Kōkiri’s leadership it aims to increase the diversity of suppliers to government, including encouraging Māori businesses to compete for government work. More competition and greater diversity of suppliers are good things. They should lead to the best contractors winning work, more opportunities for smaller businesses and better value for money.

In an ideal world where no one was confined by a budget, what would you introduce to procurement that could help the industry function and develop?

As a Director at Audit New Zealand, I feel compelled to point out there is always a budget constraint, and we would be concerned if there wasn’t.

Anyway, to answer your question, my magic wand would conjure up an integrated data warehouse and analytical tool so any public sector procurement professional could access high-quality data and insights on their own spend, available suppliers, market rates, etc. That would make procurement planning far more evidence-based and easier to do well.

In your opinion what is New Zealand’s greatest contribution to the procurement community here or overseas?

I don’t know whether it’s our greatest contribution, but I think some of the procurement approaches to the Christchurch rebuild were inspirational. I know many people faced terrible loss from that tragic event, and I know we still don’t have a fully rebuilt city over a decade later. But equally, many dedicated people across the public and private sectors worked incredibly hard in the aftermath of that disaster to try to make life better for the people of Canterbury.