Mood of the Boardroom: How CEO’s rate Labour’s Barbara Edmonds (NZ Herald)

“She’s a breath of fresh air,” one CEO says.

Described as possessing both “smarts and empathy”, she has been praised for reaching out to business figures in ways Labour has struggled to in recent years.

Path to politics

Representing Wellington’s Mana electorate, Edmonds brings a combination of lived experience and technical expertise to the finance role.

She worked as a specialist tax lawyer at Inland Revenue and later as an IRD seconded adviser to National Cabinet Ministers Michael Woodhouse and Judith Collins when they successively held the revenue portfolio.

Edmonds left IRD and spent time as a political adviser to former Labour Minister Stuart Nash before entering Parliament at the 2020 election.

She earned wide respect across Parliament, including from then National Opposition leader Chris Luxon, for her chairmanship of Parliament’s powerful Finance and Expenditure committee.

Her political career accelerated under Chris Hipkins’ prime ministership, where she held multiple portfolios including revenue, economic development, Pacific peoples, and associate roles in finance, housing, and cyclone recovery.

Taking over from Grant Robertson, she is not only her party’s first female finance spokesperson but also the first Pasifika person in the role.

Her professional background in tax is also noted as a key strength, positioning her as a pragmatic counter to the ideological bent that some felt defined the last Labour government.

Comments such as “I met Barbara recently and she showed an impressive grasp of the issues”, from Foodstuffs North Island CEO Chris Quin, and “she asks ‘what is the worst thing we could do?’, which is highly unusual but also refreshing and rebuilding confidence,” from a lobbyist, illustrate that Edmonds can win over sceptics with her approach.

However, Edmonds has hurdles to overcome.

A recurring theme from the boardroom is her lack of visibility. Many respondents say they haven’t seen enough of her to form a full opinion.

Some note that while Edmonds shows potential, she is still learning and has yet to fully define her economic stance. “Untested” and “unknown” are words used frequently by respondents, with an energy CEO asking: “What does she stand for economically?”

Executives tell Edmonds where to focus

Edmonds says her background has profoundly shaped her political perspective.

After her mother died when she was 4, her father left his job to raise his children on a benefit. Now, as a mother of eight, she draws on her lived experience to connect with the struggles of many New Zealand families.

In her post-Budget speech earlier this year, Edmonds described her pathway to finance spokesperson through her experience at three different tables: the kitchen table, where she balanced the family budget while completing university assignments; the boardroom table from her career in the private sector; and the Cabinet table, where she was responsible for managing taxpayer dollars.

As Edmonds takes on a central role in shaping Labour’s renewed policy agenda, the boardroom is clear about where they feel her focus should be.

A consistent theme was the need for Labour to embrace economic growth as a priority.

A retail boss notes: “Labour needs to talk more about growing the size of the pie, improving New Zealand’s economic performance so we can enjoy high living standards.”

There was a strong feeling that Edmonds must move away from policies focused solely on redistribution of wealth and instead look to boosting productivity and innovation, which many feel has been neglected in recent years.

Labour’s relationship with the business community also came under scrutiny, and rebuilding trust remains a significant task.

Barfoot & Thompson managing director Peter Thompson advises: “Labour needs to become more business dominant than it has been under previous finance ministers.”

The message from the boardroom is clear: Edmonds needs to show that Labour is not at war with business but rather working alongside it to foster a competitive economic environment. As Pernod Ricard’s commercial managing director, Kevin Mapson, puts it: Labour should aim for “creating a business environment that stimulates growth.”

Tax reform

Tax reform emerged from executives as one of the most talked-about issues when asked what should be on Edmonds’ agenda. Several business leaders say Edmonds’ background in tax policy is a strength, though some were concerned about how Labour will sell reforms like a capital gains tax to the electorate.

“A capital gains tax could be sold, but it would require real deftness and a tax switch that looked pro-business,” one CEO comments.