Mood of the Boardroom: Christopher Luxon breathes new life into the party

National party leader Christopher Luxon, a former chief executive of Air NZ and of Unilever Canada, brings a business focus to politics. MPs are measured by KPIs and New Zealand business leaders say his focus on discipline is an important skill set for the current environment.

In the 2022 Mood of the Boardroom CEOs survey, respondents were asked to rate Luxon’s performance as Opposition leader, by holding the Government to account on critical national issues, on a scale where 1= not impressive and 5= very impressive.

He received a score of 3.24/5; 6 per cent of respondents gave Luxon a “very impressive” score. The majority (70 per cent) rated him at 3 or 4/5.

Luxon took over as leader of National after just a year in Parliament when Judith Collins was toppled amid poor polling and a chaotic move to demote political rival Simon Bridges. In last year’s survey, her rating was a mere 2.06/5.

Luxon’s rise coincides with a time when the gloss is coming off the Labour Government.

Recent opinion polls show National and Labour neck and neck. The latest Taxpayers’ Union-Curia poll, released last week, had National and Act able to form a government.

National was up 3 points on last month’s poll to 37 per cent and Act up 1 point to 12 per cent.

Mood of the Boardroom: What about that surplus, Grant?

Getting the Government’s books back into the black should be a higher priority, according to a clear majority of chief executives.

When asked about the Government’s plan to return to surplus and stabilise and reduce net core Crown debt, 58 per cent say this should be a higher priority for the Government.

Just over one third, 37 per cent, say the priority on returning to surplus and reducing net core Crown debt is about right. A further 5 per cent think it should be a lesser priority.

Many respondents to the Mood of the Boardroom survey expressed dismay at the current level of spending and want to see a more prudent approach.

“This should be done by stopping bad policy, silly centralisations that deliver no gains and wasteful spending,” said a top infrastructure boss.

Others concur: “Mainly through controlled and targeted spending, and living within our means,” said a utilities boss.

“Should be largely derived by reducing Government spending,” added a CEO in logistics.

“The issue is less about the need to reduce core Crown debt than to reduce fiscal stimulus, to take pressure off monetary policy,” said a banking chair.

There is a cohort of business leaders who are less concerned with the amount being spent, but rather over what it is being spent on.

“The TVNZ/RNZ merger seems a complete indulgence in the current environment,” said one CEO.

“No one can seem to articulate the problem they are trying to fix.”

Notes Precinct Property chair Craig Stobo: “We know that the problem lies with ministerial acuity and leadership when the Office of the Auditor-General criticises the methodology of tourism support during Covid, and the accountability of the proposed Three Waters reforms, and when Treasury advice on the $350 cost of living spray is ignored”.
Concern over the efficacy of spend CEOs also have heightened concerns about the efficacy of Government spending.

A significant 85 per cent of respondents say they are more concerned now than they have been previously in this regard.

“Government seems to be spending an astronomical amount of money to deliver an appallingly low level of outcome,” said a top logistics CEO.

From a design firm boss: “Huge amount of cash, huge amount of no KPIs.”

Mainfreight group managing director Don Braid: “The tax dollars being collected are being wasted on the funding of the bureaucracy and the consultants”.

Some 14 per cent of respondents say they have a similar level of concern over the efficacy of Government spending as they have had in the past. Just 1 per cent say their level of concern is reduced compared to previously.

Finance Minister Grant Robertson has said that from a fiscal perspective, the Covid emergency is now over.

“At a broad level, my focus will continue to be on making sure New Zealand maintains responsible debt levels, and ensuring our path back to surplus.”

Robertson has made it clear that upcoming “tough choices” will not include austerity cuts to spending.

But there is concern that the extent to which spending is reined in will be limited, given the imminent general election next year.

“I believe the fiscal policy will be expansionary in 2023… which will be a headwind for monetary policy,” says Stobo.

Mood of the Boardroom: Act passes the credibility test

Mood of the Boardroom: Act passes the credibility test

CEOs are impressed with the Act Party, in particular with Act leader David Seymour and his ability to tackle topics that other parties deflect away from.

Seymour received the highest score from CEOs among minor political party leaders in the Herald’s Mood of the Boardroom survey, scoring 4.08 on a scale where 1 equals not impressive and 5 equals very impressive.

When asked if Act provides a more credible opposition to the Government than other parties, 46 per cent responded yes.

A further 44 per cent said no, and 10 per cent were unsure.

“David Seymour is an exemplary Opposition politician,” says one economist. “He combines political convictions with an understanding of policy development, and compared to Christopher Luxon — and despite Luxon’s business pedigree — Seymour is the far more experienced political leader.”

Seymour leads a 10-strong team in Parliament noted for its discipline and cohesiveness.

At their annual conference in July, he released a “laundry list of reversals” that the party would strive to achieve in the first 100 days of a new Government which included Act.

Mood of the Boardroom: Co-governance shouldn’t be a political football

Mood of the Boardroom: Co-governance shouldn’t be a political football

The way that debate has played out is reflective of something that I am increasingly concerned about in New Zealand: a developing division in the political discourse that is artificially divided in a way similar to what we have seen play out recently overseas.

Top law firm boss Hayden Wilson says that co-governance, in a legal sense, is not a new concept, and while it is sensible to discuss appropriate governance models for the public sector, he is concerned about the way it is being latched on to as a rhetorical tool in political debate.

Ongoing water and health reforms have seen co-governance make headlines recently.

Local Government Minister Nanaia Mahuta says that co-governance is about the Crown meeting treaty obligations and maintaining relationships between councils and mana whenua.

But National Party leader Christopher Luxon believes New Zealanders don’t have a good idea of what it means, and suggests the Government needs to set out clear guidelines on what is and what is not included for constitutional issues such as co-governance.

Wilson, who chairs Dentons Kensington Swan and is a member of Dentons’ global board of directors, says New Zealand’s government exists as a result of a treaty partnership, and governance models that seek to reflect that relationship with Māori and provide for a more inclusive decision-making, can only be a good thing.

“Co-governance is a product of New Zealand’s unique place in the world and our unique arrangements,” he says, noting it offers a real opportunity for something that is different, more effective, and truly New Zealand.

Mood of the Boardroom: Business confidence tumbles

Mood of the Boardroom: Business confidence tumbles

Respondents to the 2022 Herald’s CEO survey rated their optimism in the New Zealand economy at an average 1.86/5 — a fall from last year’s score of 2.70/5. This is on a scale where 1 equals much less optimistic, and 5 equals much more optimistic.

Though this is a significant drop in confidence, it is not as low as the record depths seen in the 2020 survey (1.36/5).

“My overall sense is that we are drifting as a country and not really moving forward, accepting it is worse elsewhere,” suggests Deloitte chair Thomas Pippos.

Roger Partridge, chair of the think tank The New Zealand Initiative, recognises threats to the economy abound at home and abroad. “Rising inflation, rising borrowing costs, skills shortages, transport bottlenecks and an increasing regulatory burden (especially labour market regulation) are all creating headwinds for business domestically,” he says.

“Internationally, the story is similar, and in some cases worse. Business is in for a buffeting.”

While the border is now fully open, CEOs consider New Zealand’s relative lateness in reconnecting and “moving on” from Covid has contributed to the confidence knock.

Harcourt’s managing director Bryan Thomson says though there are serious concerns worldwide, such as in Ukraine, “the rest of the world seems more advanced regarding Covid recovery.”

Mood of the Boardroom: Increased co-governance divides chief executives

Mood of the Boardroom: Increased co-governance divides chief executives

CEOs are split on whether increased co-governance between Government and Māori is “right for the times” or “anti-democratic”.

The vexed issue of “co-governance” frequently dominates headlines with supporters saying it is a crucial step in the Crown meeting its obligations under Te Tiriti.

But others say the extent of “co-governance” is already divisive and anti-democratic.

CEOs and directors responding to the Herald’s Mood of the Boardroom survey were asked specifically if they believed increased co-governance between Government and Māori was “right for the times”, “anti-democratic” or whether they were “unsure.

Some 37 per cent of survey respondents said that increased co-governance was “right for the times”, although many include caveats in their support.

“Co-governance seems a sensible solution for resolving claims in relation to taonga/property — especially where only a 21st-century solution is possible,” says The New Zealand Initiative chair Roger Partridge.

“However, co-governance of the national provision of services is not consistent with the principles of our liberal democracy.”

 

Onehunga FM podcast: Candidates for Local Board – Don Allan and Debbie Burrows are C&R candidates along with Tony Woodcock

In this local body election, what if we could do a little more than a tick and a prayer?

Tim McCready chats with candidates and commentators throughout the local body elections to tease out people’s visions for Onehunga and the surrounding neighbourhoods.

Episode 9:

Incumbent Local Board members Don Allan, Debbie Burrows and Tony Woodcock are standing for re-election on the C&R ticket in the Maungakiekie subdivision.

Don and Debbie joined Tim McCready to talk about what they’ve accomplished, and what they’ve still got on their agendas.

 

Onehunga FM podcast: Candidate for Local Board: Stuart Lithgow is running as an independent

In this local body election, what if we could do a little more than a tick and a prayer?

Tim McCready chats with candidates and commentators throughout the local body elections to tease out people’s visions for Onehunga and the surrounding neighbourhoods.

Episode 8: Frustrated by the local Auckland council decisions during the COVID-19 lockdowns, Stuart Lithgow resolved to run for the Maungakiekie-Tāmakie Local Board as an independent.

Stuart is a father of four and grandfather of five.

 

Onehunga FM podcast: Candidates for Local Board – Dianna Fuka, Chhaya Rana and Danika Revell are the City Vision candidates

In this local body election, what if we could do a little more than a tick and a prayer?

Tim McCready chats with candidates and commentators throughout the local body elections to tease out people’s visions for Onehunga and the surrounding neighbourhoods.

Episode 7: Looking to replace our incumbent Local Board members in this election are three women who make up the City Vision ticket; Dianna Fuka, Chhaya Rana and Danika Revell.

Dianna Fuka is a Tongan grandmother who is a church and union leader.

Chhaya Rana works as a registered nurse, and is a mother of three grown children.

Danika Revell is a mother to two young ones and is CEO and founder of The Period Place.

 

Onehunga FM podcast: Panel discussing Councillor candidates

In this local body election, what if we could do a little more than a tick and a prayer?

Tim McCready chats with candidates and commentators throughout the local body elections to tease out people’s visions for Onehunga and the surrounding neighbourhoods.

Episode 6: Jessica Gregory has a degree in political science, and Rachel Sturges is the editor of the Onehunga Community News.

The two joined Tim McCready to discuss our series of interviews with candidates standing for Councillor in the Maungakiekie-Tāmaki ward.