An expectation less red tape for Kiwi businesses bidding for Government contracts will benefit the economy.

The Finance Minister's slashing 71 requirements in the Government's procurement rule book down to 47 – including scrapping a company's requirement to pay their employees a living wage.

It's also introducing a new economic benefit test.

Building Industry Federation chief executive Julien Leys told Mike Hosking this will help growth.

He says we're going to see better deals, more work for local companies, and a move towards outcome driven decisions.

Leys says some of the current rules are very prescriptive, often creating a burden rather than focusing on what the company has to offer.

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