MPs Nicola Willis and Barbara Edmonds debate the issues at Mood of the Boardroom 2025. Video / NZ Herald
THE FACTS
The NZ Herald’s Mood of the Boardroom survey, released on Wednesday, deemed Erica Stanford to be Cabinet’s best performer.
Christopher Luxon and Nicola Willis received lower rankings than they did in the 2024 survey.
Some respondents called for a greater focus on national issues and wanted bipartisanship.
It’s not often Labour MP Willie Jackson and 150 business leaders find something in common.
But as he appeared on Herald NOW yesterday alongside National’s Erica Stanford, Jackson wholeheartedly endorsed this week’s Mood of the Boardroom survey that ranked the Education Minister as Cabinet’s best performer.
“It’s clear that Erica should be the Prime Minister, it’s clear as a bell when you’re ranking as number one and clearly they don’t see the Prime Minister in that light at the moment.”
Unfortunately, Jackson’s mischief-making, designed to stoke speculation about Christopher Luxon’s demise, also undermines Chris Hipkins’ bid to reclaim the role, particularly given the survey ranked Labour MPs Barbara Edmonds and Kieran McAnulty above their party leader.
Jackson then described the survey’s respondents – chief executives and directors – as National’s “people”, claiming they “never do anything for Labour”.
Perhaps he was still feeling the sting from his own ranking in the bottom three of Labour’s front bench.
But what does ring true is that members of National’s support base have delivered a report card that has made for some uncomfortable reading.
Speculation had been buzzing in the Beehive for weeks ahead of the survey’s release on Wednesday; eager anticipation among those hopeful of a positive rating, others holding their breath and preparing for impact.
Finance Minister Nicola Willis and Prime Minister Christopher Luxon dropped in this year's Mood of the Boardroom rankings. Photo / Mark Mitchell
As has been established, the boardroom has grown less fond of Luxon and Finance Minister Nicola Willis in the space of 12 months.
Both falling out of the top 10, Luxon and Willis recorded almost identical dips in their average rating out of five: Luxon at 2.96 (3.73 in 2024) and Willis at 3.09 (3.88 in 2024).
The numbers, which represent an impressiveness rating, are a useful guide. More consequential is the commentary and who’s saying it.
It’s little surprise Luxon’s work offshore promoting New Zealand business is seen as his best quality – it’s an arena in which he thrives.
Respondents were least impressed (while still rating him above the midway point of 2.5) with Luxon’s ability to lead transformational change, his political performance and building confidence within the business community.
Independent director Fraser Whineray, also a friend of Luxon’s, spoke publicly to that sentiment, claiming the former Air New Zealand chief executive has so far wasted the “biggest Rolodex of any PM”.
There were a few bright spots – the Government’s fast-track process and its Investment Boost initiative were commended – but much of the feedback called for a greater focus on and speed in addressing “compelling national issues”, the supply and price of energy chief among them.
Finance Minister Nicola Willis speaking at the Mood of the Boardroom on Wednesday. Photo / Dean Purcell
Luxon didn’t rise to much of the criticism thrown at him in the aftermath. He batted away questions about Stanford’s secret to success by stressing, “We play a team sport here and yes, I’m captain and I play a position in the team but I can’t be the winger and the prop as well.”
The use of the analogy is slightly amusing given All Blacks captain Scott Barrett is tonight handing over the armband – albeit due to injury – to the more popular Ardie Savea at a time when Barrett’s form is being debated.
Nevertheless, one of the overarching themes from the survey was the need for bipartisanship. Westpac’s Catherine McGrath spoke of a need for a “bipartisan path” on infrastructure and education to aid investor confidence, while Roger Partridge of the NZ Initiative urged cross-party agreement on superannuation.
Much like good weather in Wellington, bipartisanship is often talked about but rarely seen. Neither Labour nor National have a particularly good record of cross-party collaboration, even as they espouse its necessity.
The Government’s latest attempt appears to be through Brooke van Velden’s desire to tackle the beast of employment legislation, the Holidays Act.
Minister Brooke van Velden announcing her plans to change the Holidays Act. Photo / Dean Purcell
The plethora of flaws within the 2003 legislation is well-known, namely the confusion it causes employers, leading to extensive non-compliance (Health NZ has forked out $544 million in remediation so far and there’s still a way to go).
And yet, several governments of different stripes have tried and failed to find a workable solution.
Van Velden’s signalling her intent to reform the act in early 2024 earned her wishes of luck from former Workplace Relations Ministers on either side of the aisle, Labour’s Iain Lees-Galloway and National’s Michael Woodhouse – the latter saying publicly his failure to convince Cabinet to fix the act (reportedly due to fears of union backlash) was the “biggest irritant of my time as minister”.
Van Velden’s solution – creating a new Employment Leave Act that shifts to an hours-based leave accrual system and allows workers to earn leave from day one – initially received support from likely detractors, Labour and the Council of Trade Unions.
Another move welcomed is guaranteeing that parents receive normal leave pay when they take annual leave soon after returning from parental leave, as opposed to the reduced rate allowed under the Holidays Act – a change the Act Party agreed to after encouragement from National.
There are several sticking points, however. Scrapping Labour’s introduction of a minimum entitlement to sick leave for part-time employees is a measure Opposition parties and the unions strongly oppose.
Concerns remain over the consequences of cashing out leave and questions are building among payroll providers over whether van Velden’s proposal can achieve the simplicity she seeks – the Ministry of Education could need a decade to figure it out.
Brooke van Velden has offered Opposition parties briefings to discuss her proposal. Photo / Dean Purcell
Van Velden has firmly stated she wants a lasting replacement for the Holidays Act, one forged through a full parliamentary process with six months spent in select committee.
Some might hear van Velden’s call for proper process and reach for the salt shaker, given she led the Government’s controversial reform of pay equity legislation without warning and under urgency.
This time around, van Velden has offered briefings to Labour, the Greens and Te Pāti Māori in the coming weeks to discuss her proposal.
Despite good intentions, van Velden may find time is not on her side. A bill isn’t expected to reach the House until early 2026 and if it spends six months at select committee, it’ll be dangerously close to when the House might rise for the election.
Whether van Velden resists avoiding the delays and debates that can come with good lawmaking will show just how committed the Government is to improving its next report card in 2026.
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.
