Dynamic Business: FIF rules - the context has changed (NZ Herald)

Dynamic Business: FIF rules – the context has changed (NZ Herald)

Venture capitalist Rob Coneybeer underscores the connection between talent, innovation and foreign direct investment (FDI).

“While FDI is important, it is the talented individuals who drive innovation – and that innovation is what ultimately attracts investment,” he says.

Using Rocket Lab as an example, Coneybeer illustrates how founder Sir Peter Beck built an internationally renowned company by assembling a highly skilled team, with many recruited from outside New Zealand. Their collective expertise brought in global investment and helped establish New Zealand as a leader in space technology.

Coneybeer, who is managing director and founder of US-based venture capital firm Shasta, underlined the issues at the recent United States Business Summit in Auckland.

A migrant to New Zealand himself, he highlights the country’s natural advantages: political stability, its environment and a reasonable cost of living. He says these factors all make New Zealand an appealing destination for global talent, but the Foreign Investment Fund (FIF) rules turn otherwise enthusiastic innovators and investors away.

“New Zealand can have a great big bucket for foreign direct investment, but if you have this big hole in the bottom that keeps people from engaging and living here, then it’s not worth the effort,” Coneybeer says.

Revenue Minister Simon Watts recently announced a review of the FIF rules as part of Inland Revenue’s tax and social policy work programme. This has been broadly welcomed by both business leaders and policy analysts, who have long argued for reform.

Labour’s finance spokesperson Barbara Edmonds supports the review, acknowledging the FIF rules are outdated. “When the FIF rules were designed, we didn’t have the global mobility of labour that we have now. The context has changed, and people are more able to choose New Zealand as a place to work,” she says.

Edmonds – a former Labour Revenue Minister and IRD tax lawyer – says the potential fiscal loss as a result of any changes will be top of mind for the government, but “there are some elements that could be changed on the edges without it being a potential risk to revenue base”, such as adjusting the $50,000 threshold, which hasn’t changed since the rules came in.

She also points to the transition period as another area that could be considered. It is currently four years but could be extended.

Coneybeer suggests that options should be explored such as allowing individuals to voluntarily opt into a capital gains taxation instead of FIF. He argues that this approach could be revenue-neutral or even revenue-positive.

“If they had the ability to opt into realisation-based taxation on assets in lieu of FIF, then that revenue could come to New Zealand because it is already accounted for with a clear offset against US capital gains tax in the tax treaty,” he says.

Edmonds points out that the FIF rules make up part of a broader discussion on tax reform. She notes growing momentum, citing the International Monetary Fund (IMF), the World Bank, the OECD and senior business leaders who have identified gaps in New Zealand’s revenue base.

“There is an opportunity to look at the FIF rules and how they work, if New Zealand had a capital gains tax,” she says.

Green energy: A competitive edge

Reflecting on what New Zealand could lean on to attract further international investment, Edmonds told the US Business Summit that New Zealand’s renewable energy resources offer a unique competitive edge. She sees it as a foundation for addressing several of New Zealand’s challenges simultaneously: climate resilience, economic growth, and job creation.

She highlights the strategic importance of New Zealand’s clean energy advantage, particularly as companies intensify efforts to decarbonise supply chains. The ability to offer clean, renewable power positions New Zealand as a preferred location for companies looking to align operations with sustainability goals.

“New Zealand has an edge ahead of the world in renewable energy,” she says, noting that climate-related disclosures are requiring companies to track emissions through their supply chains which makes New Zealand’s high proportion of renewable energy a magnet for international businesses.

“More and more international companies, including one I met from the US just a couple of weeks ago, want to come to New Zealand and scale here because of our renewable energy sources,” she adds.

“Our high renewable energy numbers already give us a significant head start,” Edmonds says. But she stresses the importance of continued investment in energy generation, transmission, and storage infrastructure to realise this potential fully.

Foreign investment rules

New Zealand’s FIF rules are increasingly cited as an impediment to attracting global talent and investment to New Zealand. Introduced almost 40 years ago, the rules were designed to prevent wealthy taxpayers from shifting assets to offshore tax havens out of sight of Inland Revenue. However, they’ve not kept pace with modern economic realities.

Under the rules, New Zealand residents with overseas investments are taxed as though those assets generate a 5% return annually, regardless of whether they are liquid or not.

This can result in double taxation, particularly with the US, where New Zealand’s tax agreement fails to offset FIF taxes against US capital gains.

The FIF rules have significant implications for attracting skilled migrants and returning expats. Many reconsider moving to or staying in New Zealand because of the financial penalty these rules impose.

 

Dynamic Business: Deloitte Top 200 Index 2024: Mixed results for New Zealand's largest firms (NZ Herald)

Dynamic Business: Deloitte Top 200 Index 2024: Mixed results for New Zealand’s largest firms (NZ Herald)

The 2024 Deloitte Top 200 Index reveals a mixed performance across key metrics, highlighting challenges as well as continued resilience among New Zealand’s largest businesses.

Total revenues for Top 200 companies increased by 4.1%, rising from $235,849 million in 2023 to $245,432m in 2024. This represents a slower pace of growth compared to the 12.4% increase in 2023.

Underlying earnings (ebitda) decreased by 8.1% year-on-year, from $32,690m in 2023 to $30,058m in 2024. This contrasts with the 8.1% increase observed in 2023.

The ebitda margin, an assessment of operating profitability as a percentage of total revenue (total ebitda/total revenue), also declined, slipping from 13.9% in 2023 to 12.2% in 2024, reflecting a 1.7% decrease.

Total profits after tax saw a sharp decline, falling by 57.2% from $11,733m in 2023 to $5,026m in 2024. This is a marked change from the 4.0% increase recorded in 2023. The net profit margin (profit after tax/total revenue) also decreased, from 5.0% in 2023 to 2.0% in 2024.

Total assets increased modestly by 3.8%, from $318,806m in 2023 to $331,076m in 2024, down from a 4.9% increase the previous year.

The No 1 spot in the Top 200 Index has been held by Fonterra since its formation in the early 1990s. This stronghold continues, however, its revenue fell by 7.2%, from $24,580m in 2023 to $22,822m in 2024. This decrease is mainly because of a softening demand in the ingredients channel and a 1% decline in sales volumes from continuing operations.

The 200th-ranked entity in 2024 is Christchurch Airport, with revenue of $233m. This is a 5.0% increase compared to 2023’s 200th-ranked company, Scott Technology, which reported $222m in revenue.

Ebos Group, at No 2, maintained its position with a 6.6% revenue increase, rising from $13,370m in 2023 to $14,254m in 2024. This was driven by organic growth and acquisitions that contributed to growth in its healthcare and animal care businesses. The revenue gap between Fonterra and Ebos decreased by 23.6%, compared to a 2.6% decrease in 2023.

A significant shift occurred as Foodstuffs North Island climbed to third place in the Top 200 (from 10th in 2023), with revenue increasing by 9.1 to $9,235m. Revenue figures for 2023 and 2024 have been grossed up in respect of charge through sales whereby Foodstuffs North Island is now considered to be a principal rather than an agent. Revenue for 2023 has increased from the previous reported figure of $4,299m to $8,462m as a result of this restatement.

The top 10 in the Index has seen some movement in 2024, with Meridian Energy re-entering the top 10 in 10th place (2023: 17th). This pushed Mainfreight out of the top 10 to 11th place (2023: 8th). Woolworths NZ has remained in fourth place, and BP NZ has remained in ninth place.

Fletcher Building has moved down to fifth place (2023: 3rd) and Fulton Hogan has moved down to seventh place (2023: 5th).

Air New Zealand has dropped to eighth place (2023: 6th) and Z Energy moved into sixth place (2023: 7th).

Top profits
The top profit after tax for 2024 was $1168m, reported by Fonterra (ranked first in the Top 200 Index), retaining its position in the top profit rankings from last year.

This figure represents a 5.9% decrease from Fonterra’s profit after tax of $1241m in 2023.

Last year’s second-highest profit was Spark (13th in the Top 200 Index), which reported a profit after tax of $1135m, including a $583m gain associated with Spark’s sale of Connexa. In 2024, Spark’s profit after tax fell to $316m, dropping its ranking to seventh place.

The average profit after tax across all 200 companies decreased from $53m in FY23 to $25.1m in FY24, a 53% decline. This trend reflects challenging economic conditions and broader economic performance.

Infratil (20th) has risen to second place for profit in 2024, up from fourth in 2023. The infrastructure investment firm has seen its profit after tax increase by 28.2%, from $562m in 2023 to $846m in 2024. Infratil acquired full ownership of One NZ, with the result reflecting 10 months’ earnings contribution from One NZ under full ownership.

Retirement village operator, Summerset (174th), is a new entrant to the Top 200 in 2024 and has secured third place with a profit after tax of $440m. This result includes a $442m favourable fair value movement in investment property.

Lotto (31st) has moved up to fourth place in 2024, from eighth in 2023. Its profit after tax increased by 12.8%, from $385m in 2023 to $434m in 2024.

Meridian Energy (10th) has made a significant leap in the rankings, moving from 36th place in 2023 to fifth place in 2024. Its profit after tax rose by 352%, from $95m in 2023 to $429m in 2024.

Spark (13th), One NZ (24th), and 2degrees (37th) have moved out of the top five profits for 2024 but remain in the rankings at seventh, 67th, and 156th place, respectively.

Biggest losses
The biggest loss for 2024 was reported by Woolworths NZ (ranked fourth in the Top 200 Index), with a loss of $1673m. In 2023, Woolworths had the 42nd ranked profit after tax, reporting a profit of $76m. The loss is attributed to lower sales and a $1.6b goodwill impairment loss.

KiwiRail (49th) holds the second biggest loss for 2024, with a loss of $647m. In 2023, KiwiRail had the largest loss of $771m. KiwiRail also had the third biggest loss in 2022 and second biggest loss in 2020.

Goodman Property (193rd) is a new entrant to the Top 200 in 2024, holding the third biggest loss in 2024 of $565m. This compares to a loss of $135m in 2023. Its loss is primarily attributed to fair value losses on the revaluation of investment property.

Wine, spirits and champagne business, Pernod Ricard NZ (121st), and dairy producer Synlait Milk (36th) respectively hold the fourth and fifth biggest losses in 2024.

Most improved profit
Datacom (ranked 34th in the Top 200 Index) recorded the most improved profit, with an 1800% increase, moving from a $2m loss in 2023 to a $34m profit in 2024.

Ngāi Tahu Ltd (138th) achieved the second most improved profit, with an increase of 843%, shifting from a $5.8m loss in 2023 to a $43m profit in 2024.

Mainland Poultry (183rd) holds third place, with a profit increase of 748%. In the current year, Mainland Poultry recorded a profit of $23.5m, compared to a profit of $2.8m in 2023.

Most improved revenue
Costco NZ (ranked 141st in the Top 200 Index) reported the most improved revenue, increasing revenue to $341m in 2024 compared to $21m in 2023, because the current year represents the first full year of trading. This uplift has meant Costco NZ is a new entrant to the Deloitte Top 200 Index in 2024.

Waste Management (83rd), also a new entrant, has the second most improved revenue, with an increase of 325%, from $152m in 2023 to $645m in 2024.

Infratil (20th) achieved the third most improved revenue, with an increase from $1192m in 2023 to $2995m in 2024, because of acquiring full ownership of One NZ, with the result reflecting 10 months of One NZ being consolidated under full ownership.

Gull (46th) holds the fourth most improved revenue, increasing by 117%, from $495m in 2023 to $1076m in 2024. The 2023 figure included revenues for around six months post the change in ownership from Ampol to Allegro.

This is the primary driver of the increased revenue in 2024, as well as increasing fuel prices.

Amazon Web Services (122nd) held the most improved revenue in 2023. Its revenue held largely consistent year-on-year, with a 3.4% increase, rising from $372m in 2023 to $385m in 2024.

Infratil (20th), Emirates Airlines (88th), Auckland Airport (62nd) and Tourism Holdings (60th) are the only companies to be included on this index in both 2023 and 2024.

Airways, Graincorp Commodity, Gull, McConnell Dowell, Mercury, Meridian Energy and Xero are included in both the most improved profit and most improved revenue index in 2024.

Return on assets (ROA) provides an indication of how efficiently a company manages its assets in order to generate earnings. It is calculated by measuring profit against the total assets reported.

Emirates Airlines NZ (ranked 88th in the Top 200 Index) maintains its top position for ROA, achieving 595.4%. In 2023 the airline had a ROA of 325.1%.

Singapore Airlines (123rd) re-entered the Top 200 Index in 2024, and holds the second spot with a ROA of 312.9%.

Lotto (31st) ranked third for ROA, decreasing from second place in 2023, with a ROA of 146.5%.

Pushpay (129th) entered the ROA rankings in fourth place, achieving 48.7% in 2024, a significant improvement from 8.9% in 2023. This is driven by an increase in net profit after tax from $35m in 2023 to $283m in 2024, primarily because of an adjustment in deferred tax.

Aurecon (169th) maintained its fifth-place ranking, with a ROA of 30.6% in 2024, compared to 41.6% in 2023.

Return on equity measures how effectively a company can generate income relative to the amount of money shareholders have invested in the firm.

It is a useful tool for investors, particularly when comparing firms within the same industry and is calculated by measuring the revenue earned against the average equity held over the past two years – to prevent changes in shareholder contributions from skewing the results.

Singapore Airlines (ranked 123rd in the Top 200 Index) has returned to the Top 200 Index in 2024 and occupies first place in the return on equity rankings, with a result of 9164.4%.

Emirates Airlines NZ (88th) has taken second place for return on equity, achieving 808.3% and moving up from third place in 2023.

Lotto (31st) has taken third place for return on equity, moving down from the top spot in 2023, with a return on equity of 623.6% in 2024.

Bunnings (27th) has taken fourth place for return on equity, moving down from second place in 2023, with a return on equity of 499.3% in 2024.

Pushpay (129th) is in fifth place with a return on equity of 179.1%, a notable improvement from 13.2% in 2023 because of its increase in net profit after tax.

This year, 21 companies were added to the Deloitte Top 200 Index. This compares to last year when 22 companies were added to the Index.

Downer (ranked 17th on the Top 200 Index) entered the Index at the highest rank with revenue of $3378m.

Waste Management (83rd) returned to the Index in 2024 with revenue of $645m.

DHL (99th place) with revenue of $522m and Singapore Airlines (123rd) with revenue of $382m were the third and fourth highest-ranked newcomers in 2024.

Just missed the cut
OCS Group (would rank at 201st in the Top 200 Index) narrowly missed the cut by just $3m, with the 200th-ranked company (Christchurch Airport) achieving revenue of $233m.

CablePrice (202nd), Honda NZ (203rd), and DKSH (204th) were close to breaking into the Top 200 Index in the current year, all achieving revenue around $229m.

The Top 30 Financial Institutions Index sees one new addition to the Index, FlexiGroup (ranked 30th).

The Top 30 financial institutions have had a slight decline in their total asset bases this year by $6473m, from $733,803m in 2023 to $727,331m in 2024. This is a 0.9% decrease and contrasts with the 9.3% increase seen in 2023.

The top bank is once again ANZ, holding assets of $194,289m, down 3.4% from $201,134m in 2023. ANZ continues to sit comfortably in the top spot, with a $61,491m gap in total asset value between first place and second place (Westpac). ANZ also outpaces all other banks in terms of profit and equity.

The second place in the Index has been held by Westpac in both 2023 and 2024, with total assets of $132,798m – a decrease of 2.2% from the previous year.

BNZ continues to hold third place, with total assets of $130,065m, a 1.0% decrease from the previous year.

ASB remains in fourth place from 2023, with total assets increasing slightly to $127,089m – up 0.2%.

Of the top four financial institutions, ANZ, Westpac and ASB have had a decrease in profit year-on-year.

ANZ reported a decrease in profit from $2,289m to $2,217m (a 3.1% decrease), Westpac reported a decrease in profit from $1,298m to $1,184m (a 8.8% decrease) and ASB reported a decrease in profit from $1,559m to $1,455m (a 6.7% decrease).

BNZ was the only top four financial institution to report an increase in profit, from $1,414m to $1,509m in 2024 (an increase of 6.7%).

Kiwibank has retained its fifth-place spot, with total assets of $36,650m. Kiwibank’s total assets have increased by 8.3% from $33,838m in 2023. ASB has dropped to fourth place in 2023 from second in 2022, with total assets of $126,896m.

Cumulative profits for the Top 30 financial institutions have increased by 0.8% from $7715m in 2023 to $7775m in 2024.

Cumulative equity has increased by 5.4% from $65,823m in 2023 to $69,356m in 2024.

The top seven financial institutions have remained the same seven entities from 2023 to 2024.

Heartland Bank has moved up to eighth place from ninth place in 2023, which has caused HSBC to move down from eighth place in 2023 to ninth place in 2024.

MUFG remains consistent, holding 10th place in 2023 and 2024.

It is noted that certain financial institutions may have released unaudited earnings announcements that are not reflected in the indices or commentary above.

 

US Business Summit 2024: US capital – The spur for New Zealand’s growth story

Co-founder of Shasta Ventures and a 24-year veteran of venture capital, Rob Coneybeer discussed how New Zealand can position itself to attract foreign direct investment. Rob shone a light on New Zealand’s appeal as an investment destination, sharing insights into how the country could attract much needed foreign direct investment and thrive in the global market.

He was joined by Hon Barbara Edmonds, a former tax lawyer and Labour’s Finance Spokesperson, who spoke about how New Zealand can take advantage of US investment, bringing a fresh perspective on Labour’s approach to fostering stronger economic ties and capitalising on opportunities.

Moderator: Tim McCready Summit MC

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US Business Summit 2024
22 November 2024 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.

US Business Summit 2024: Bright ideas and big markets – Dr Will Barker & Professor Delwyn Moller

Two visionary New Zealand leaders shared how advanced technologies in green metal extraction and aerospace innovation were addressing global challenges, from climate change to resource scarcity, while also creating vast opportunities in international markets.

Will Barker, CEO of Mint, highlighted how urban waste can be transformed into valuable green metals, reducing reliance on traditional mining and enabling a low-carbon, circular economy.
Professor Delwyn Moller presented cutting-edge innovations in aerospace technology, showcasing how Earth observation systems and advanced remote sensing are being used to address global challenges.
Moderator: Tim McCready – Summit MC

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US Business Summit 2024
22 November 2024 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.

US Business Summit 2024: Call to order, Tim McCready

CALL TO ORDER
MC: Tim McCready

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US Business Summit 2024
22 November 2024 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.

Sustainable Business and Finance: Banking on green loans (NZ Herald)

Sustainable Business and Finance: Banking on green loans (NZ Herald)

ICBC New Zealand is committed to supporting New Zealand’s sustainability journey, acting as a key partner for businesses adapting to sustainable development.

A subsidiary of the largest bank globally by total assets, the Industrial and Commercial Bank of China, ICBC New Zealand has set a green finance strategy that promotes green and sustainability-linked lending, with 20% of its current corporate lending portfolio directly tied to green or sustainability-linked loans.

These financing options, structured specifically to promote environmentally beneficial initiatives, are playing a vital role in helping New Zealand businesses transition to more sustainable practices.

“Our green finance strategy allows us to partner with New Zealand businesses in a meaningful way, helping them achieve their environmental goals while aligning with ICBC Group’s commitment to sustainability,” says Kevin Xu, deputy head of corporate and institutional banking at ICBC NZ. “By working together, we foster partnerships that support measurable, positive environmental and social impacts.”

Green loans, for example, require that their proceeds go exclusively toward projects that will deliver clear environmental benefits.

“This structure not only aligns businesses with sustainability goals but provides financial motivation, as businesses that meet specific green benchmarks can secure lower interest rates.’

This approach reflects a growing trend in New Zealand and globally, where companies are increasingly transforming their business models to align with environmental, social, and governance (ESG) principles. ICBC New Zealand points to local examples, including traditional IT suppliers pivoting to provide solar solutions and timber businesses moving into renewable energy.

“Green and sustainability-linked loans offer financial advantages that appeal to businesses motivated to achieve measurable outcomes,” adds Xu. “This not only supports their ESG goals but also offers tangible cost benefits.”

ICBC New Zealand has been striving to build up a diverse green and sustainability-linked lending portfolio, with projects spanning multiple sectors, including a sludge minimisation facility in Wellington; a green loan for Far North electricity provider Top Energy; and a sustainability-linked loan for Waste Management NZ, a leader in recycling and waste management.

ICBC Group’s focus on green finance aligns with China’s sustainability goals, aiming to reach peak carbon emissions by 2030 and carbon neutrality by 2060.

The group also supports China’s “Five Major Financial Articles” policy framework, which focuses on priority areas to strengthen the Chinese financial sector: scientific and technological finance, green finance, inclusive finance, pension finance, and digital finance.

ICBC New Zealand aligns its business strategy with the group’s direction to strengthen the New Zealand-China relationship, building high-quality, long-term partnerships in sectors critical to sustainable local development, including infrastructure, healthcare and education.

Through its work with local businesses looking to expand into China, ICBC New Zealand offers access to Chinese markets, resources, and opportunities while also facilitating Chinese investment into New Zealand.

This two-way connection is helping to foster knowledge exchange, offering both countries opportunities to share expertise in areas such as technology, aged care, and sustainable funding practices. “Our focus on building long-term partnerships and supporting a high-quality customer base highlights our dedication to fostering strong, lasting connections with our clients,” says Xu.

“As a reliable banking partner, ICBC New Zealand invests in infrastructure, people-focused businesses, and long-term assets that foster to local growth. Through this approach, we advance both the bank’s goals in sustainable finance as well as contribute to New Zealand’s resilient economic future, with a commitment to local prosperity and shared international objectives.”

ICBC NZ’s sustainable projects
Top Energy green loan

ICBC New Zealand is a lender to Far North electricity generator and distributor Top Energy. Following the success of reinjecting carbon emissions from the Ngāwhā geothermal power stations back into the geothermal reservoir, Top Energy had sufficient eligible assets to convert all its lending facilities into green loans.

In October 2024, Top Energy converted all its bank facilities, including ICBC New Zealand facility, into green loans. Eligible assets for the green loans include renewable geothermal generation plants, electrical grids and storage assets.

Under the green loan terms, ICBC New Zealand provides an interest discount contingent on Top Energy maintaining eligible assets equal to its total green loan limit. Top Energy will demonstrate ongoing eligibility through annual update reports.

Waste Management

In 2022, ICBC New Zealand provided meaningful support in a bank syndication to assist Igneo Infrastructure Partners with the acquisition of Waste Management NZ, a leader in materials recovery, recycling and waste management.

Igneo Infrastructure Partners has a strong focus on sustainable value creation and responsible investment, and since the acquisition has revised Waste Management’s strategy to be circular, with the ambition to power a carbon-neutral circular economy for future generations. In line with its sustainability commitments, Waste Management worked with its banking partners to develop a sustainability-linked financing framework, converting its syndicated facilities into a sustainability-linked loan. This loan includes a pricing adjustment mechanism based on Waste Management’s performance across three key indicators: climate change (carbon neutrality by 2050), circular economy (recovered materials tonnage), and employee sustainability training (25% of staff will undergo annual training on climate and circular economy topics).

Wellington sludge minimisation facility syndicated green loan

In August 2023, ICBC New Zealand acted as joint mandate lead arranger and joint sustainability co-ordinator in a syndicated green loan to fund the Wellington sludge minimisation facility at Moa Point. This supports Wellington City Council’s goal of net-zero carbon by 2050 by reducing annual sludge volume by up to 80% and cutting carbon emissions by as much as 60%.

The facility also aims to improve biosolid quality for industrial or horticultural reuse and uses treated wastewater to ease demand on Wellington’s drinking water supply.

This project was enabled by the Infrastructure Funding and Financing Act 2020, which allows debt to be raised without impacting the council’s balance sheet. Instead, Crown Infrastructure Partners will manage a special-purpose vehicle that will levy most rate-paying properties in the city for 33 years, starting from July 2024.

ICBC New Zealand is a sponsor of the Herald’s Sustainable Business & Finance report.

Mood of the Boardroom event video (NZ Herald)

Mood of the Boardroom: Strong start for Nicola Willis, business leaders urge focus on growth  (NZ Herald)

Mood of the Boardroom: Strong start for Nicola Willis, business leaders urge focus on growth  (NZ Herald)

The boardroom is calling for more than just fiscal prudence. Business leaders want a more ambitious, clearly articulated plan and a more engaged approach with the business community.

The Mood of the Boardroom 2024 reveals that 78% of top CEOs and directors responding to the NZ Herald’s survey are confident in Finance Minister Nicola Willis’ economic leadership, while 8% are not, and 14% remain uncertain.

Willis has had a swift rise to one of the Government’s top jobs.

She entered Parliament in 2018, after holding senior management roles at Fonterra focused on global trade strategy. Following Judith Collins’ ousting as National leader in 2021, Willis became deputy leader under Christopher Luxon.

In 2022, she took over the finance portfolio from Simon Bridges, and following the 2023 election was appointed New Zealand’s 43rd Minister of Finance in the new coalition Government.

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

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

Barbara Edmonds, Labour’s first female finance spokesperson, has stepped into the spotlight as she begins to reshape the party’s economic vision.

She is known for her pragmatic approach, clear communication, and ability to connect financial policy to real-world outcomes.

The NZ Herald’s Mood of the Boardroom survey asked New Zealand’s top executives whether Edmonds presents herself as a credible future Minister of Finance. The results show that she is in a formative stage of her political journey.

Just over 32% of respondents say Edmonds is a credible future Minister of Finance, with a similar number either unsure (35%) or unconvinced (33%).

While some business leaders applaud her approach and genuine engagement, there is still a perception that she remains untested and relatively unknown in the public eye; hardly surprising after a mere seven months in the role.

Several highlight her ability to connect with business leaders and demonstrate a strong grasp of economic issues.

“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.

A banking boss warns: “She will be forced to sell their tax reform idealism but needs to bring business pragmatism to the discussion.”

Fiscal responsibility and the efficiency of government spending also feature prominently, with frustration with what some view as excessive spending from Labour in the past.

“Government’s wasteful spending programmes, public sector bloat,” notes a logistics boss, while another calls for “sensible use of public funds” and a clear plan to address productivity gaps.

Edmonds will need to present Labour as a party that can manage the economy with discipline.

As Bagrie Economics’ Cameron Bagrie sums up: “Rebuilding Labour’s credibility as reasonable economic managers — that credibility has been lost.”

Beyond economic and tax policy, other respondents urged Edmonds to tackle some of New Zealand’s most pressing issues.

“She needs to focus on infrastructure, education, and productivity,” advises the head of an industry association, reflecting a wider sentiment that Labour must address core public services without ideological distractions.

This pragmatic approach was echoed by chair of The New Zealand Initiative, Roger Partridge: “Move away from centralisation. Empower local governments and communities while ensuring proper incentives and accountability.”

There is also a growing call for Labour to take a longer-term view of New Zealand.

KiwiRail CEO Peter Reidy suggests that Labour outlines “what we need for New Zealand in 2040. A 15 to 20-year vision,” rather than falling into the trap of short-term political fixes.

A professional director urges Labour to focus on “multi-period challenges for New Zealand,” demonstrating leadership where the current Coalition Government has been seen as weak.

With Labour facing a pivotal period of repositioning, Edmonds has an opportunity to redefine the party’s economic narrative.

Business leaders say her empathy, expertise, and fresh perspectives could help Labour connect more meaningfully with the business community and the broader electorate.

However, to solidify her credibility as future finance minister, she will need to step into the public eye more prominently and communicate Labour’s economic vision.

As a banking sector CEO puts it: “Barbara is an absolute class act who possesses an equal balance of smarts and empathy.

“Quite the unicorn.”

But as Labour prepares for 2026, Edmonds will need to show she’s not only unique but ready to lead.