The Government wants five percent of public sector contracts to go to Maori businesses

Maori Development Minister Willie Jackson says the Government spends 42-billion dollars a year on procurement of goods and services.

He says the new five percent target will encourage agencies to cast the net wider when awarding contracts - and help speed up economic recovery for Maori businesses.

The target is considered aspirational - partly due to a lack of precise data about the scale of Maori business activity.