Public Service Minister Nicola Willis is confident Maori businesses will continue to win Government contracts, on the basis of their value

That's despite the axing of a policy to award them eight percent of the Government's annual contracts.

A Cabinet Office memo's also directed agencies to put need ahead of race in all matters.

Nicola Willis says the eight percent target was problem.

She says it led to a perception among some people bidding for contracts, that it wasn't a level playing field and that Maori businesses would be favoured.