About $900 million worth of government contracts could go to Māori businesses under a Labour plan to bring back its Progressive Procurement policy.

Labour would aim for an initial target of 5 per cent of government procurement contracts to be awarded to Māori businesses, in line with its target for small businesses.

Labour’s Māori economy spokesperson Cushla Tangaere-Manuel said the policy had already proven itself.

“Māori businesses up and down the country have demonstrated that they can deliver. That’s why Labour will reinstate our Progressive Procurement policy because we know it works.”

Based on the previous policy, the 5 per cent target was both deliverable and sustainable, she said.

Tangaere-Manuel said Māori unemployment had climbed to 10.8 per cent under National and the Māori economy had gone backwards.

The contracts would inject much-needed capital into Māori businesses and support wider economic and social growth, she said.

Countries including Canada, Australia, the United Kingdom, the United States and South Africa had seen a significant rise in the number of indigenous and minority-owned businesses through similar approaches, Tangaere-Manuel said.

“More Māori in business means more Māori in sustainable employment, growing the Māori economic asset base and lifting incomes for whānau.”