Mood of the Boardroom: NZ CEOs rank Government ministers and Labour leaders, Luxon and Willis fail to make top 10
Luxon says he'll remain as PM
Tom Dillane
Luxon said he would not be stepping down as PM amid the mounting pressure on his leadership following lacklustre personal polling, and a GDP slump.
"I'm here to do a job," he said.
‘It's a two-speed recovery’ - PM
Tom Dillane
Prime Minister Christopher Luxon said the focus was on building the conditions for economic growth, as he spoke from Auckland Airport at midday today.
"I fully appreciate it's a two-speed recovery at the moment," he said.
Luxon said some business were doing very well in economic recovery and primary businesses were having record years.
Farmers confidence was at an all-time high but he acknowledged that in Auckland and Wellington the picture was different.
This morning, Luxon was ranked 15th in performance among Government ministers in the Mood of the Boardroom survey of New Zealand CEOs.
Luxon was asked about the Mood of the Boardroom survey where some business leaders said that Luxon was a poor listener and didn't take constructive feedback well.
"Well I have a lot of engagement with business leaders...I [was] a CEO with a corporate background, I try and listen to those views the best I can,” the PM said.
He said his job as Prime Minister was to create the conditions for growth and think about the "5 million people living in this country not just the 150 filling in the survey".
Asked if it was time for a new economic strategy, Luxon said: "I think we need to communicate our economic strategy, we are here to build the best small country on earth".
Asked if he was worried he'd lost the backing of the business community, he replied “no".
Helen
The event, at Auckland's Cordis Hotel, was attended by a number of political figures, including former PM John Key and Minister of Education Erica Stanford; and Minister of Health Simeon Brown, pictured with finance minister Nicola Willis.
How's the mood?
Hamish Fletcher
Garth Bray speaks to Freightways CEO on the economic climate
Finance face-off
Hamish Fletcher
See the debate between Finance MInister Nicola Willis and Labour finance spokesperon Barbara Edmonds at the Mood of the Boardroom event this morning.
Twice as Nice
Hamish Fletcher
Asked to say something nice about Willis, Edmonds said it was easy to respect her as a fellow female leader in finance, along with those also in the audience.“We were speaking about that earlier - the challenges that come with holding a household down, being in a job that’s in the spotlight, in a job where you’re constantly being attacked.“But I’ll always respect Nicola, I will always respect the office of the Minister of Finance because those are generally the values everyone has, and when we lose touch with those values that’s when our country will go downwards.”
“Right back at you”, Willis said in response to Edmonds’ positive comments when asked to say something nice about the Finance Minister.Asked the same question of Edmonds, Willis said she admired her finance counterpart “in the midst of a party that in my observation isn’t brilliant with numbers”.
“And you’re having to be the technocrat who gets everyone to focus on the page. I’m glad you’ve got the experience juggling your eight children because I hate to think what it’s like juggling the members of the Labour Party caucus on tax.”
She also “sincerely admire[d]” Edmonds continuing to “forge ahead with confidence despite what must be some really challenging backroom conversations”.
“I’ve appreciated the tone you’ve set in our relationship in Parliament, the tone you’ve set here today, and I believe you are genuine in your intent.”
Poll on Mood of the Boardroom debate
Hamish Fletcher
Have your say on who performed better in this morning's debate?
Edmonds on CGT
Hamish Fletcher
Edmonds wouldn’t comment on whether Labour would bring in a capital gains tax.
“Where Labour goes with our tax policy, we will announce it with good time because we know New Zealand needs certainty … when we win and we bring in a tax policy we will go through the generic tax policy process. I’ve said [that] should be the standard for most Government policies where you can do it - that means there’s a consultation phase … and that’s because tax is hard, and there’s unintended consequences, so you have to work through them carefully.”
Hamish Fletcher
Asked if Labour would reinstate the ban on oil and gas exploration if re-elected, Edmonds said the party had already said they would do so, prompting Willis to shake her head and take a deep breath.
“But for us that’s only a small part of the equation. There’s a wider part to the energy strategy that’s needed … we’ve said we want to work with the Government on the energy strategy.”
Former PM John Key at Mood of the Boardroom
Hamish Fletcher
How safe is Luxon as PM?
Hamish Fletcher
Asked how safe the PM was in his role, Willis said:
"He’s completely safe. The thing that really struck me when I read the report was how invisible it is to many the coalition management that he defly does behind the scenes to create suability out of three quite different parties."
"But also the underestimation of how he has put the right talent in the right places in our cabinet and has backed people in roles to succeed."
Willis said she didn't want the top political job for herself.
How much is too much to cut?
Hamish Fletcher
Treasury says continued cuts will be required to hit the Government's goal of reducing spending as a share of the economy, how much is too much?
“Government needs to be much more efficient in the way its spends taxpayers money, it needs to drive more value from the investments we make," Willis responded.
'It's time for the stopping of this chopping and changing'
Hamish Fletcher
Asked if Labour would borrow and spend more than the current Government, Edmonds said National had borrowed and spent more since the last Labour Government.
"There are very big challenges ... and they will require the Government investing in it."
Plans around borrowing, spending, expenses, and how assets would be looked after would be part of Labour's fiscal plan and policies in the future.
"But ultimately it's time for the stopping of this chopping and changing, and I do give my good faith approach to the Minister - there are some bits there which she had reached out to us, we need to work on that and that's come quite clearly through the [Mood of] the Boardroom again this year."
What does success look like for Willis?
Hamish Fletcher
Question for Willis: What will success look for you in terms of growth by the end of this year and the election next year?
"The problem with stats is they come out several months after the things have occurred. So you won’t know whether I’ve been successful this year until Stats [NZ] have done their updates and undoubtedly their quarterly revisions which have become a theme."
“Success is sustained growth,” Willis said.
When will Labout release policy?
Hamish Fletcher
Edmonds was asked how much she was looking forward to having a policy to campaign on.
Labour set up its policy in a "really grassroots" way, and also didn't have the same resources at the Government.
"A few more weeks to go and we'll start to come up with it," she said.
What's Willis' policy for growing KiwiSaver
Hamish Fletcher
Asked about her policy to grow retirement savings, Willis reminded the room that in Budget 2025 the Government increased contributions for KiwiSaver, starting April 1 next year, with another increase scheduled for two years later.
“Bringing total contributions to 8% between employers and employees.”
”We do want to support New Zealanders to be able to invest in KiwiSaver. It’s also the case that doing that involves real income sacrifices at a time when the cost of living is top of mind for most.”
Hamish Fletcher
Willis was asked about we need as a country to hold a pro-growth line to sharpen delivery on long-term projects and set out long term vision in a more bi-partisan way.
“Well we do need to. There are some challenges that have remained elephants in the room for too long because of political potshots. I put superannuation top of the table there," she said.
Edmonds' biggest worry
Hamish Fletcher
What worried Edmonds most was something that'd come through the survey, and was "deeper and potentially more damaging",
"Disconnection. People are doing everything right - showing up, working long hours, juggling two jobs, running their business and still, that's not enough. When that happens resentment can grow and when people lose hope they stop imagining a better future.
"They drift away from their communities, from the institutions, from the clubs, even their democracy. Our job as leaders in this room are to rebuild those connections, so the strongest communities are not found online but right outside our front doors and in our workplaces ... it's about creating opportunity that reaches every part of our country, and all of us in this room play an important part in this."
She had three priorities, the first of which was wealth creation with a purpose by lifting productivity, backing innovation and growing high value industries that solve real problems such as housing or climate resilience, Edmonds said.
She also planned to have a strong partnership with business, and to focus on "investing in ourselves" so New Zealanders could "build a future here, not leave for opportunities overseas".
"Yes, overseas investment does have a place. But the foundations of our future wealth must come from our skills, our talent and our capital."
She wasn't here to play games, Edmonds said.
"If something works, Minister, I will back it. If it doesn't, I'll work with you in this room to change it."
Labour would offer a "new deal for New Zealand businesses", with more details on how revealed in the weeks ahead, she said.
A Labour Government will work with you to unlock our country's potential, invest in our people and build a resilient economy that works for everyone- not just for today, but for generations to come."
'An ugly recovery...I am the face of it'
Hamish Fletcher
‘We’re having an ugly recovery and people are feeling it… I am the face of finance and economic growth,” Nicola Willis said, responding to her 13th rank among ministers in the Mood of the Boardroom survey.
Asked Willis saw any political risk when stepping forwad to be the Minister for Economic Growth, she said:
“Well I’m always conscious that government creates the conditions for growth but ultimately it is other actors in the economy, whether its firms, entrepreneurs, workers who individually contribute to growth occurring.
“But we back New Zealand, so I am confident that with the right conditions in place we have every reason to grow – I think that was the right commitment to make.
“There’s been a lot of talk about Q2. In Q1 we grew three as times as Australia and twice as fast as treasury were forecasting. Unfortunately it didn’t make quite so many headlines.”
“Consensus economists continue to forecast that our recovery is ongoing and we will see overall annual growth this year. We don’t take that for granted, but we see every reason with lower interest rates and a better fiscal environment, clear regulatory approach from Government that businesses can have confidence to invest and grow
'New Zealand has gone backwards, but it doesn't have to'
Hamish Fletcher
Labour's finance spokeswoman Barbara Edmonds started
"Families are feeling the cost of living every week, at the checkout, at their local council rates and as you've seen in the energy prices and insurance premiums. For many, long term planning isn't even an option. The priority is getting through to payday."
Businesses face similar pressures, from high energy costs to a lack of political certainty, Edmonds added, saying she was there to talk about the alternative and why she was ready to be the country's next Minister of Finance.
None of what had been shared today was a surprise, Edmonds said.
"Because many of you have been telling me these things for the last 18 months."
Over the last three months the economy has shrunk by nearly one per cent, taking with it National's economic credibility. Willis may blame global conditions, Australia, the UK and Japan all grew in the same period, while New Zealand took a massive step towards recession, Edmonds said.
The Government said they just needed more time, but we don't have time to waste, Edmonds said.
"Thirty-six-thousand people have lost work since 2023. Unemployment in Auckland is at 6.1 per cent. Last year business liquidations hit a decade high of 2700 and tens of thousands of our brightest people are leaving for Australia, in search of oppotunities that should be made available here.
"Put simply, New Zealand has gone backwards, but it doesn't have to."
'New Zealand remains a great place to live'
Hamish Fletcher
Responding to the survey at the Mood of the Boardroom event in Auckland this morning, Willis said growth has not come quick enough for many.
The Government needs to work with pace and commitment, she said.
Willis said the Government is absolutely listening to the things people say are important.
This includes investment and resource management.
She said two projects have already been fast tracked so far.
“New Zealand remains a great place to live", she said.
She said New Zealand can be a nimble trading environment.
She said growth is ahead of us, and the Government was driving it.
Hamish Fletcher
Energy prices and inflation and cost of living pressures were having the biggest impact on business confidence in New Zealand, those surveyed said
Out of 10, energy price increases scored 7.41 and inflation/cost of living pressures 7.31.Infrastructure/roading constraints and security of energy supply were 7.3 and Government policy uncertainty 7.16.
'It's not all doom and gloom'
Hamish Fletcher
Nicola Willis highlighted some bright spots in the report, including the acknowledgement of education minister’s hard work
“Chris Bishop's work on the resource management system is recognised. The stewardship that Mark Mitchell has provided of the police, that Simeon Brown has provided of the health system. They're recognised.
“So it's not all doom and gloom.”
She told Newstalk ZB’s Mike Hosking she still believes they are on the right track.
"When I look at what businesses are telling us they want us to do, I'm convinced we are doing the right things.”
'I share their impatience' - Willis responds
Hamish Fletcher
Finance Minister Nicola Willis said she believed she was ranked 13th on the list of ministers in the Mood of the Boardroom because she is the face of a “difficult recovery” for the economy.
She told Newstalk ZB’s Mike Hosking she takes responsibility for getting the country through a “cyclical downturn” and accepts that all the results of her work have not been made public or are not obvious, so opinions of her might be low.
“And I accept that people haven't seen all of that yet and they want to see it.
“They're impatient, they're frustrated in some cases.
“I share their impatience, I share their desire to get this economy going, and we will let the results speak.”
Top of class for Erica Stanford in Mood of the Boardroom
Hamish Fletcher
Minister Erica Stanford said just because she ranked the highest, does not mean she has any wishes to be Prime Minister next.
She told Newstalk ZB’s Mike Hosking she wants to be education minister “for the next ten years”.
“I love this job, it's an absolute honour to support teachers in the classroom.”
She said there was “always room to improve” and her main takeaway from the report was that the government needed to listen more, which she had taken onboard.
Hamish Fletcher
There were three big questions at this year's Mood of the Boardroom, O'Sullivan said.
Respondents were asked to score out of five - with one being much less optimistic and five much more optimistic, whether they were more optimistic that a year ago about the general business situation in your industry (score 3.15/10), the NZ economy (2.82) and the global economy (2.63)
'Torn up the rulebook'
Hamish Fletcher
This year's Mood of the Boardroom is at an inflection point in New Zealand, the survey's executive editor Fran O'Sullivan said.
Not only with just the latest economic figures in New Zealand, but with how US president Donald Trump has "torn up the rulebook".
O'Sullivan is presenting the survey to a business event at the Cordis in Auckland.
There were three big questions at this year's Mood of the Boardroom, O'Sullivan said.
Respondents were asked to score out of five - with one being much less optimistic and five much more optimistic, whether they were more optimistic that a year ago about the general business situation in your industry (score 3.15/10), the NZ economy (2.82) and the global economy (2.63)
'What has she done to create growth in New Zealand?'
Hamish Fletcher
CEOs have sent a clear message to Finance Minister Nicola Willis in the Herald’s Mood of the Boardroom survey: hold the pro-growth line, sharpen delivery, and set out a long-term vision that brings investors back onside.
Hamish Fletcher
'Economic intensive care ward'
Hamish Fletcher
You don’t need a weatherman to know which way the political winds are blowing right now.
They are beginning to rustle the leadership of Prime Minister Christopher Luxon.
Last week’s GDP figures, the week before‘s migration numbers, along with the regular drumbeat of industrial layoffs, all point to an economy that is in the economic intensive care ward.
See political commentator Richard Harman's full assessment.
Garth Bray live from the Mood of the Boardroom event
Hamish Fletcher
NZME's Garth Bray speaks to Herald Now live from the Mood of the Boardroom event in Auckland.
Just 3% of CEOs rate Christopher Luxon’s domestic performance as ‘very impressive’
Hamish Fletcher
“Luxon went into Parliament with the biggest Rolodex of any PM,” says Independent director Fraser Whineray says
“All of whom were ready to help support getting things done and provide real-world advice across multiple sectors.
“He hasn’t used it at all.”
Time for a new playbook?
Hamish Fletcher
CEOs are looking to Christopher Luxon’s Government for clear leadership and direction as New Zealand reaches an inflection point.
Where is our “North Star”, or our “moon bets” they question, saying a much more ambitious — yet captivating — path is needed to prise the country out of its malaise.
That’s the prevailing sentiment from the 2025 Herald Mood of the Boardroom survey, which comes on top of narrowing political polls, a faltering New Zealand economy and unrelenting international crises.
CEOs not chipper about Chippy
Hamish Fletcher
The Leader of the Opposition does not escape unscathed in the survey - with CEOs warning that he risks leaving Labour invisible.
Trouble for Luxon and Willis?
Hamish Fletcher
The country’s top chief executives and directors have handed out a brutal assessment of Prime Minister Christopher Luxon and Finance Minister Nicola Willis.
Neither is ranked in the top 10 in this year’s Cabinet ratings.
Luxon scored an average of 2.96/5 on a scale running from one, “not impressive”, to five, “very impressive”. That ranked him 15th among Cabinet ministers.
See the full rankings.
Welcome to Mood of the Boardroom
Hamish Fletcher
Welcome to the Herald's Mood of the Boardroom live coverage.
The survey gauges the feeling of CEOs and the business community. This year's not pretty for the Government.
In fact, the country’s top chief executives and directors have handed out a brutal assessment of Prime Minister Christopher Luxon and Finance Minister Nicola Willis - neither is ranked in the top 10 in this year’s Cabinet ratings.