Finance Minister Nicola Willis and Labour spokeswoman for finance Barbara Edmonds debate policy at Mood of the Boardroom 2024. Video / NZ Herald
Business leaders have given their verdict on the Government in the Herald’s Mood of the Boardroom survey. They say it’s time to move on from blaming the previous administration and get on with bold steps needed to spur economic growth.
They are also much more optimistic, rating theirconfidence in the economy at 3.23 out of 5 – the highest score since 2016.
Throughout the survey, more than 100 chief executives and some chairs presented their ideas to address the major issues facing the nation.
They were also asked to rank government ministers and opposition MPs.
After almost a year as prime minister, Christopher Luxon scored an average of 3.73/5 on a scale running from one, “not impressive”, to five “very impressive”.
Education Minister Erica Stanford during a post-Cabinet press conference in April 2024. Photo / Mark Mitchell
Stanford, who holds both the education and immigration portfolios, was the Cabinet standout, topping the list with a score of 4.01/5. Some 37% of survey respondents marked her performance “most impressive”.
Willis (Finance, Public Service and Social Investment) and Bishop (Housing, Infrastructure, RMA Reform, Sport and Recreation) both scored 3.88/5.
Deputy Prime Minister Winston Peters (Foreign Affairs) was 7th with a rating of 3.66/5 and David Seymour (Regulation) was further down the list at 12th with 3.40/5.
Despite the relatively high rankings for Cabinet’s top 10, there were some reservations.
“I worry they are not focusing on the biggest issues for New Zealand’s future prosperity by getting distracted by stuff that won’t shift the dial and disenfranchising talented experienced directors from taking up positions,” said a legal firm boss.
The NZ Herald survey disclosed business leaders want the Government to move on from blamestorming its Labour predecessors for the economic environment it inherited.
“Fiscal restraint is right for the times but where good investment stacks up we should get on with it,” said an industry association chief. “Labour did spend way too much and profligately so, but New Zealand doesn’t have a significant public debt issue relative to other nations; we have productivity and growth ones that require sensible investment. Finally, let’s see more policy boldness.
“It doesn’t need to be full Rogernomics or Ruth Richardson style, but more than English or Robertson incrementalism is required given New Zealand’s serious problems.”
Willis is earning the confidence of the business community, the survey showed, with a significant majority of executives expressing trust in her management of the economy as finance minister.
Some 78% of survey respondents said they were confident in Willis’ economic leadership, while 8% were not, and 14% remained uncertain. Willis has had a swift rise to one of the Government’s top jobs.
Meanwhile, many business leaders also rate Barbara Edmonds, Labour’s first female finance spokesperson.
Just over 32% of respondents said Edmonds was a credible future Minister of Finance, with a similar number either unsure (35%) or unconvinced (33%).
Labour Finance spokeswoman Barbara Edmonds at Parliament, Wellington, in February 2024. Photo / Mark Mitchell.
With Labour still regrouping after the election loss, leader Chris Hipkins was seen as taking a measured approach to the challenges facing the party.
His performance was met with lukewarm reviews from business leaders. They gave him a score of 2.26/5.
The consensus was that the party was still reeling from the election loss and had yet to regroup effectively. Labour received just 26.9% of the vote, compared to National’s 38%.
“The Opposition has yet to accept the reasons for its defeat in 2023,” said NZ Windfarms director Craig Stobo.
“Until they digest that result, they will struggle to articulate what Labour now stands for.”
Business leaders’ optimism about the economy has surged, although many caution the journey to full recovery is not over.
Respondents rated their confidence in the New Zealand economy at 3.23/5 on a scale of 1-5, where 1 signifies “much less optimistic” and 5 represents “much more optimistic”. This year’s score was a significant improvement from last year’s 1.82/5.
Asked if they were confident inflation was now past its peak, 90% of respondents said “Yes”.
Catch the live stream of a Q&A with Nicola Willis and Barbara Edmonds from 7.30am on nzherald.co.nz
