There's industry celebrations over a directive to use Kiwi wool in Government buildings. 

New builds worth more than $9 million and refurbishments costing over $100,000 must use wool where possible from July, meeting a Coalition deal.

In January, housing agency Kainga Ora reversed its price-based decision to not use dearer wool products

Campaign for Wool's general manager, Kara Biggs, says she's ecstatic.

"It will start to create more and more demand - so growers, manufacturers, brands, they will all reap the financial benefits from this decision today."

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