Mood of the Boardroom: Business leaders deliver blunt verdict on Hipkins (NZ Herald)

Mood of the Boardroom: Business leaders deliver blunt verdict on Hipkins (NZ Herald)

Chris Hipkins is facing a sharp verdict from New Zealand’s top chief executives. Asked in the Mood of the Boardroom CEOs survey to rate his performance as opposition leader in holding the Government to account on critical national issues, the average score delivered is just 2.01/5. More than 70% of respondents give him a rating of just 1/5 or 2/5.

The upshot is a warning that Labour looks like a party waiting for the Coalition Government to collapse under its own failures, rather than offering a credible alternative.

“The Labour Opposition generally lacks visibility and is generally simply looking for the Government to fall out of favour,” says Deloitte chairman Thomas Pippos.

An engineering CEO is equally blunt: “He appears to be watching the Government implode instead of stepping up and showing leadership, how can Labour demonstrate they can lead the country out of the current economic climate?”

A law firm CEO sums up: “I really like Chris Hipkins but am frustrated by his lack of leadership. Re-ignite what he and the Labour Party believe in — have a vision for New Zealand that will inspire and ignite action.”

For some, the issue goes beyond opposition tactics to credibility. “I find it difficult to reconcile responsibility for the policies of the last Government with critiques of the current Government’s attempts at managing the consequences of those policies,” says Local Government Funding Agency chairman Craig Stobo.

Others highlight his public absence from the Covid inquiry, his unwillingness to front mistakes from Labour’s past term, and a tendency to focus on political point-scoring rather than solutions.

But most want clearer direction. “He’s good in some areas, weak in others,” says Ventia executive general manager Damian Pedreschi. “It’s time to hear more clearly what his and his party’s position is on key topics and back it up with their plans and policies.”

A tech boss adds: “Hipkins has improved Labour’s standing and sharpened accountability on key policy areas, pending clearer, costed alternatives across the board.”

Not all verdicts are so uncompromising. Some see merit in Hipkins’ cautious approach.

“I think he’s played a clever game — mostly keeping his head down,” says a tourism chairperson. “He doesn’t need to do much, as the public don’t like Luxon, the economy is awful and people will just want to feel they are voting for something better.”

But business leaders agree the current strategy cannot hold indefinitely.

After Jacinda Ardern’s resignation in early 2023, Chris Hipkins was swiftly elevated to Labour’s leadership. A senior minister under Ardern, he had held portfolios including education, public service, police, and Covid-19 response.

Hipkins sought to reset Labour’s agenda with what became known as his “policy bonfire”, including shelving the RNZ-TVNZ merger, withdrawing proposed hate speech laws, delaying the social insurance scheme, and changes to Three Waters. He framed the shift as a move back to “bread and butter” economic issues, an attempt to narrow Labour’s focus and reconnect with middle New Zealand.

Since Labour’s defeat in 2023, Hipkins has sought to reset Labour with a deliberately lower profile.

While in some ways this has worked — he has polled close to Prime Minister Christopher Luxon this year and is now leading in some preferred leader surveys — many in the boardroom say the strategy risks being perceived as too quiet and too often absent from the policy debate.

Labour’s challenge in opposition is not only rebuilding credibility with business, but convincing voters it can chart a course without appearing constrained by its potential coalition partners. With polling suggesting Labour cannot govern alone, many in the boardroom fear power-sharing with theGreens and Te Pāti Māori could hand too much influence to more activist policy positions.

Hipkins has sought to allay those concerns by stressing “jobs, homes and health” as Labour’s core priorities, while keeping up regular engagement through business roundtables and economic briefings. But doubts remain.

Labour’s invisible frontbench leaves business wanting more
The survey reflects those doubts. Most of Labour’s frontbench are rated closer to “not impressive” than “impressive”, with business leaders repeatedly citing a lack of depth, direction and co-ordination.

Barbara Edmonds tops Labour’s performance rankings with an average score of 3.20/5, reflecting cautious but growing respect for her role as finance and economy spokesperson.

She also holds the savings and investment portfolio.

Kieran McAnulty, responsible for housing, infrastructure and public investment, scores 2.87/5.

Beyond them, the ratings fall away sharply. Even Labour leader and former Prime Minister Hipkins lags well behind with 2.28/5.

Next is Ginny Andersen (police) on 2.17/5, Megan Woods (energy) on 2.16/5, Ayesha Verrall (health) on 2.07/5, and Carmel Sepuloni (Auckland issues) on 2.04/5.

The bottom-ranked three of Labour’s front bench all score below 2/5: Willie Jackson (Māori development) rates 1.78/5, Jan Tinetti (workplace relations) 1.76/5, and Willow-Jean Prime (education; children) on 1.53/5.

“Not as co-ordinated on communications as they need to be, especially between Chris and Barbara,” notes the CEO of a large law firm. “Need to demonstrate greater clarity, strength and energy. We need a stronger opposition and option — and fast!”

There are some serious doubts about competence. “Very few are in command of their portfolios or give a clear sense of strategic direction,” says a recruitment boss. Others argue Labour has “lost any fight and leadership” and remains “largely anonymous and impossible to understand what their policies might be.”

Even those more sympathetic emphasise the need for urgency. “I hope the Labour Party is biding its time and doing some serious policy work behind the scenes a year before elections,” suggests Auckland Business Chamber CEO Simon Bridges.

“Regardless of what the outcome may be, New Zealand deserves an Opposition that is keeping things competitive.”

Mood of the Boardroom: Geopolitics moves up the risk list (NZ Herald)

Mood of the Boardroom: Geopolitics moves up the risk list (NZ Herald)

New Zealand’s business leaders are sharply aware of the risks posed by an unsettled global environment, with the majority now integrating geopolitics into their governance.

In the 2025 Mood of the Boardroom survey, 78% of chief executives say their boards regularly assess geopolitical vulnerabilities as part of their risk matrix. A further 21% say the issue is not systematically addressed, and 1% say they are unsure.

For many leaders, 2025 has reinforced the need for constant vigilance. “This year has underlined that small nations like New Zealand feel every ripple of global instability and must turn agility into our strategic advantage,” says Institute of Directors CEO Kirsten (KP) Patterson.

For some, the response is systematic. Morrison CEO Paul Newfield says, “At every board meeting, we discuss geopolitics and its impact on both capital flows and investment risks.”

Executives with international reach stress the obvious. “A no-brainer when we operate and are exposed to the Asean, European and the Americas markets,” says Mainfreight managing director Don Braid. The head of an investment firm adds: “New Zealand is obviously very vulnerable when you look at what is happening in Southeast Asia and in the Pacific. This is our region.”

Concerns around China remain central. A chairperson in the food industry observes that “concentration of business in China has been part of our discussion for a decade.”

Education leaders are equally wary. One recognises that “given our reliance on Chinese student recruitment, we have active monitoring and diversification strategies in place”.

The ripple effects of conflict and protectionism are also straining margins. “The impact of global uncertainty, trade and tariffs, and the current wars are causing significant impacts on the rising cost of goods for our business and our customers,” warns a grocery executive.

Even domestically oriented firms feel the knock-on. The chairperson of an energy firm notes that “while our business tends to be domestically focused, we nevertheless keep a wary eye on these factors as they may impact our customers.”

Mood of the Boardroom: Why we need vision, not just visibility (NZ Herald)

Mood of the Boardroom: Why we need vision, not just visibility (NZ Herald)

“Government isn’t a business school exercise — it requires vision.”

That’s the view of Dentons chairman and global vice-chairman, Hayden Wilson, who says the Government needs to step up to match its economic targets with a more ambitious and long-term strategy.

“It feels as though they’re trying to talk up the economy, when what they should be doing is working with business to enable the economy to grow.”

Too many decisions, he says, seem more about signalling action than delivering results. “It’s managerialism rather than leadership,” he says. “And what the business community wants and needs from the Government is leadership, partnership and engagement.”

Despite efforts to support economic growth, he sees little sign of momentum. “Saying you’re relentless for growth doesn’t create growth,” he says. “The Government has a role in creating the enabling conditions for that growth to occur.”

That lack of direction is made worse, he says, by the dynamics of the Coalition Government. While coalition governments are nothing new under MMP, he believes the current government feels particularly fragmented. “There does seem to be a feeling that two minor parties have significant sway. It feels more like three equal leaders.”

The dynamic, he says, has created uncertainty about who is actually steering. “And that perception matters — particularly when long-term decisions are needed.”

One initiative Wilson welcomed was Investment Boost, the accelerated depreciation tax incentive announced in this year’s Budget to encourage businesses to invest in productive assets.

But he has observed that the policy hasn’t had the desired impact. “Businesses don’t have the confidence to make large-scale capital investments,” he says. “It doesn’t seem to have driven behaviour in the way that the Government expected, or in the way that I hoped it would, either.”

That lack of response, he says, reflects a deeper issue: a government operating without a cohesive strategy for growth. “We haven’t seen a plan for how growth gets achieved, and what the government’s role in achieving that is.”

Wilson says the economy — particularly in Auckland and Wellington — is doing it tough. “It’s very sluggish, and businesses don’t have confidence that it’s going to improve.”

He notes that even in the regions, where people are feeling the benefits of a slightly improved economy, you’d expect some of that money to be spent.

“But for a lot of people, that’s going to pay down debt. It’s not going into long-term investment.”

Part of the challenge, he believes, is how resources are allocated.

“We seem to be trying to do too much not well enough, rather than focusing on how — in the fiscal constraint we have — money can be invested for the largest return over the longest time.”

He adds that this challenge isn’t exclusive to the current Government: Labour, too, must be clearer about its agenda. “It’s not enough to oppose. Labour needs to lay out its ideas on infrastructure, accept that we have thin capitalisation, and say how it would do things differently.”

Wilson says unlocking long-term investment — especially in infrastructure and climate resilience — depends on the assurance that policies will survive changes in government. That, he argues, requires a degree of bipartisan commitment that has been lacking. He points to enduring examples of infrastructure as proof that long-term thinking works.

“Wellington’s 1930s-era state houses are still standing strong nearly a century on, even if no longer social housing,” he notes. “Does anyone think the social housing the Government is investing in now will still be there and still be attractive in 50 or 100 years?”

What’s needed, he says, is a commitment to infrastructure delivery that survives electoral cycles.

“We run into this risk that a government gets in, throws everything out, and starts again.” That kind of reset, repeated every three years, undermines trust in the pipeline.

“Both Labour and National need to understand that bipartisanship is more than just the other side agreeing with you. Frankly, the business community and the New Zealand public expect better.”

Wilson says climate issues, while largely missing from the current agenda, remain a live concern for business — particularly around insurability, managed retreat, and resilience. “Most businesses are still quite concerned about the pure business impacts of climate change.

“Those environmental and climate credentials have long helped attract people to New Zealand, and they’re quietly slipping off the radar.”
● Dentons is an advertising sponsor of the Herald’s Mood of the Boardroom report.

Mood of the Boardroom: Barbara Edmonds - We’re still waiting for a tax plan (NZ Herald)

Mood of the Boardroom: Barbara Edmonds – We’re still waiting for a tax plan (NZ Herald)

The boardroom’s message to Labour’s Barbara Edmonds is clear: her openness and willingness to listen have earned respect, but there is growing impatience for detail.
The 2025 Mood of the Boardroom survey shows a slim majority of New Zealand’s top business leaders — 53% — see Edmonds as a credible future Minister of Finance. But with 26% unconvinced and 21% undecided, that credibility remains contingent on the policies she puts forward.
One senior leader sums up the sentiment of the boardroom: “Yes, she presents as credible, but Labour’s bench strength and policy depth remain the real question.”
Edmonds’ personal appeal is consistently noted. Many respondents highlight her composure and pragmatism, describing her as respectful, considered and measured.
“The most credible of all the shadow ministers,” says Deloitte chairman Thomas Pippos.
Chairman of Scales Corporation, Mike Petersen, is more cautious: “She’s not yet ready for the role, but she clearly has potential.”
Edmonds has had a rapid rise in politics. Born to Samoan parents and the first in her family to attend university, Edmonds became a tax lawyer at Inland Revenue, was seconded to advise National ministers Michael Woodhouse and Judith Collins, and later joined then-Labour minister Stuart Nash’s office.
She entered Parliament in 2020, winning the Mana electorate with a commanding margin, and went on to chair the Finance and Expenditure Committee, earning praise even from then-Opposition leader Christopher Luxon.
Under Chris Hipkins’ prime ministership, she held the revenue, economic development and Pacific peoples portfolios, with associate roles that included finance and housing.
She is Labour’s first Pasifika finance spokesperson and, with eight children, often stresses her ability to juggle pressure. At last year’s Mood of the Boardroom breakfast debate — her first — she leaned heavily on authenticity:
“I came here today thinking I’m going to embrace it and have fun. It’s an extreme privilege to be in a room with the business leaders of this country,” she told CEOs. “I won’t stand here and make political promises that I don’t intend to work my ass off to keep. I will always take a meeting or a call, and I will always listen.”
She went further, stressing that collaboration must be real, not rhetorical:
“I’ve been incredibly grateful for those that I have met with, you have been gracious in your time and your free and frankness. We may not agree on everything, but I’m going to tell you why we don’t agree. I think that’s how we can make New Zealand a better place: when business, government and opposition work better, together.”
A real estate boss recalls: “Barbara was very good at last year’s Mood of the Boardroom debate, keeping Nicola Willis on her toes.”
During the debate, she also showed flashes of ambition and grit. When asked if she had the “killer instinct” to succeed as Finance Minister, Edmonds asserted that she does.
“Absolutely. You don’t have eight children and you don’t go through a tax degree and a law degree without struggles and challenges,” she told the audience.
“You can be nice, smart, intelligent, considered — and do the hard mahi.”
That blend of humility and quiet steel left an impression, though many CEOs note they are still waiting for that resolve to translate into clear economic strategy.
“She has good personal appeal, but I have not seen any evidence of her technical capability and strategic thinking. Much is made of the fact that she was a tax lawyer, but this is a far cry from running the economy — we need to see some policies first,” says EMA chief executive John Fraser-Mackenzie.
There has been some criticism that Edmonds has been slow to land blows in Parliament and, for CEOs, Nicola Willis remains the reference point by which she is measured.
“I really like Barbara, but she needs to exude much greater confidence,” says the head of a major law firm. “She pales in terms of credibility against a very strong Nicola Willis.”
But that has begun to shift when Edmonds took Nicola Willis to task earlier this month in question time over the timeline of Adrian Orr’s resignation from the Reserve Bank.
Edmonds challenged the Finance Minister on withheld texts and delayed disclosures. It was a rare moment where Edmonds moved beyond her usual measured tone to apply real political heat — and business leaders say they want to see more of that edge.
Respondents acknowledge Edmonds has put real effort into building connections, with business leaders noting her weekly presence in Auckland and her willingness to engage. But they also stress that listening must now be matched by delivery — a growth story, fiscal constraint, and tax clarity.
“Barbara is impressive,” says the head of an investment firm. “I’d encourage her to spend more time with business leaders so that she can present a bold and confident economic growth plan.”
Her collaborative instinct was also on display in her former role as Labour’s infrastructure spokesperson. At the Infrastructure Investment Summit earlier this year, she was instrumental in building bipartisan support, backing the use of public-private partnerships while setting clear non-negotiables around hospitals, schools, prisons and critical infrastructure.
“These are the essential public services, and people expect their government to safeguard them,” she told investors.
Several argue Labour’s six years in government stacked costs on business through higher wages, expanded leave, added holidays, and mounting compliance.
One respondent is blunt: “Decisions were in the hands of Labourites just like Barbara Edmonds, an academic who has never run a business.”
That view is not universal, but it underscores the gulf that Edmonds — and Labour — must bridge before next year’s election.

The capital gains test
That will be tested soon when Labour unveils its long-awaited tax package — its first major policy offering of the campaign. A capital gains tax (CGT) is widely expected to sit at the centre of it.
The idea is hardly new. Labour has explored versions of CGT for decades — from David Lange’s tentative steps in the 1980s, to Phil Goff’s ill-fated 2011 campaign, to Jacinda Ardern’s decision to rule it out despite Sir Michael Cullen’s 2019 tax working group urging reform. Each time, political backlash forced retreat. Chris Hipkins also ruled it out in the lead-up to the 2023 election campaign.
This year’s Mood of the Boardroom survey highlights just how divisive the issue remains: 34% of CEOs support a CGT in principle, 47% oppose it outright, and 19% remain undecided.
Support today hinges on scope and safeguards. “A carefully scoped CGT, with safeguards, could make the system fairer and more efficient without discouraging productive investment,” says the CEO of a manufacturer.
Institute of Directors CEO Kirsten (KP) Patterson frames it as generational fairness: “At some point, New Zealand will need to lean into a capital gains tax … it’s not sustainable to leave it until after the grey-bubble generation has had their financial reward and the burden falls yet again on a younger generation already struggling with home ownership.”
Auckland Business Chamber CEO Simon Bridges adds a note of caution:
“A form of capital gains tax, if accompanied by corporate tax relief, is — with great care and skill — saleable to middle New Zealand and business.”
As Auckland Airport CEO Carrie Hurihanganui puts it: “The devil is in the detail as not all capital gains tax policies are the same.”
The common red lines for respondents include applying it only to realised gains, excluding the family home and small businesses, and offsetting it with relief for low earners.
Opponents are equally emphatic. “Does not work as implied, and will stifle investment,” says one.
Craig Stobo, chairman of the New Zealand Local Government Funding Agency, points back to 2019: “Sir Michael Cullen’s tax working group said it all … it all sounds good until the operational details are revealed.”
Others argue for fiscal restraint instead of new taxes: “If the Government just focused on spending wisely, that would not be required. Any new tax will be wasted.”
The emotional edge is sharp. One leader warns CGT could drive a “mass exodus” to Australia. Another says bluntly: “I would consider leaving the country.”
Yet there is also a pragmatic middle, ready to support a narrowly drawn, transparent regime if it is paired with credible growth measures and income tax offsets.
For Edmonds, how she handles this will be seen as a test not just of her policy chops but of her ability to sell Labour’s economic direction and ultimately win the electorate’s backing as Labour’s next Minister of Finance.

New NZIBF director outlines exporters’ response to tariffs

New NZIBF director outlines exporters’ response to tariffs

The New Zealand International Business Forum (NZIBF) has entered a new chapter of leadership, with Felicity Roxburgh stepping in as executive director at a time of heightened geopolitical uncertainty.

Roxburgh brings almost 20 years’ experience in trade and foreign policy. She has served in senior roles at the Ministry of Foreign Affairs and Trade, with postings in Hong Kong, New York and in the Pacific. Most recently, she was New Zealand’s Consul-General in New Caledonia, and before that led the business programme at the Asia New Zealand Foundation. She succeeds Stephen Jacobi who helped establish NZIBF in 2007.
Roxburgh had little time to ease into the role. Just weeks after joining the Forum she was fronting 15 media interviews on the United States’ sudden 15% tariff on New Zealand goods.

“There is a large appetite to understand what is happening in clear, simple terms and the impact on our exporters,” she says. “People knew the tariffs were going to impact us, but they didn’t know how or why.”

One of her top priorities is ensuring the fast-moving responses of business are better understood.

“Companies are responding to tariffs, supply chain disruption and investment uncertainty in real time”. Whether through scenario planning, diversifying into new markets or passing on costs to importers and consumers, she says these real-time adjustments are often invisible in high-level policy discussions, yet they are vital for resilience and competitiveness.

She is also focused on the future of New Zealand’s free trade agenda. Roxburgh points out that while New Zealand benefits from a dense “elaborate spaghetti network of free trade agreements”, gaps remain. “India and the US are the big missing pieces,” she says, noting that the government is putting huge investment into growing the India relationship and negotiating an FTA.

“At the same time, behind-the-border barriers — non-tariff costs — hit our exporters up to $10 billion a year. It’s a huge challenge.”

She also sees real opportunity in major trade blocs deepening collaboration. “If the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union were to do something together — and with us being a member of the CPTPP — it would be around 30% of the global trade. That’s one to watch.”

For Roxburgh, NZIBF’s role in the current climate is clear: to amplify exporters’ experience and work with the Government to push forward on market access.

“What does a business response look like to geopolitical uncertainty? Scenario planning, diversification, pricing changes, working with partners. These are practical steps companies are taking, and that’s the story we need to tell.”

Mood of the Boardroom: Domestic anxieties weigh heavy (NZ Herald)

Executives were asked to assess their level of concern on a range of domestic issues. The highest-scoring pressures were little changed from last year, with boardroom anxieties once again concentrated on energy, infrastructure, and the cost of living.

Energy security (7.26/10) and energy price increases (7.41/10) were rated among most pressing domestic concerns, along with inflation/cost of living pressures (7.27/10), infrastructure and roading constraints (7.33/10), and government policy uncertainty (7.15/10).

“Energy affordability over the last five years has undermined our international competitiveness and reduced shareholder investment sentiment,” one CEO observes.

Another was more blunt: “Lack of electricity is one of the biggest handbrakes to the economy.”

Political stability is also weighing on sentiment. “The biggest concern is political uncertainty over a re-election of Labour or a strongly left-leaning Labour-led coalition,” says an agribusiness leader.

Others pointed to coalition politics itself as corrosive. “Particularly the attempts to score points by undermining large businesses in New Zealand,” from an energy boss.

The tone of the national debate also drew criticism. A healthcare sector leader argues: “New Zealand is in desperate need of a narrative change to support success. The focus on negative stories within the press is creating self-harm toward our future.”

Housing, too, emerged as a central influence on confidence. As one CEO noted: “Flat house prices are impacting business confidence. Our mental model of wealth and confidence is driven inordinately by house prices. Domestic mortgages are used to finance many SMEs, but also personal confidence. Whilst these wallow it is hard to see consumer and business confidence move significantly.”

And while capital remains available, executives say deploying it remains fraught.

“Availability of capital is not a concern, but being able to get capital actually invested in assets in New Zealand is of concern,” says an energy firm CEO. “Regulators fundamentally fail to understand New Zealand is in a competition for capital and we make it very hard to genuinely compete. Few investors look to New Zealand as a growth play, they invest as a yield play.”

A healthcare boss sums up the overall sentiment: “These ratings do not necessarily reflect my personal views, rather what I have heard in general boardroom discussions. The prevailing mood is still cautious, fragile, and waiting for clearer signals from political leadership.”

Or, as a recruitment executive puts it more simply: “Hoping we have bottomed out – and the only way is up.”

Stark sector differences in optimism
Optimism among New Zealand’s leading industries is deeply uneven, with agribusiness and real estate lifting confidence while energy, government and education remain stuck in the doldrums.

On a scale, where 1= ‘much less optimistic’ than a year ago and 5= ‘much more optimistic’, agriculture/agribusiness and real estate topped the rankings, each scoring 3.80/5.

Last year, the real estate industry also topped the table with an average score of 4.33/5, while agriculture/agribusiness scored 3.86/5.
A dairy industry leader said “demand for dairy remains solid. Tariffs have had little real impact to date. We remain deliberately well diversified and just have to navigate the rest”.

A horticulture executive adds that “geopolitical uncertainty has increased” – a common comment across export-facing industries.
Harcourts New Zealand managing director Bryan Thomson describes the property market as having been “a very challenging environment,” but said he was “optimistic improvement is underway.”

Construction (3.67/5), technology (3.63/5), professional services (3.47/5), finance (3.47/5) and airlines (3.33/5) also scored relatively strongly compared to a year ago.

Deloitte New Zealand chair Thomas Pippos pointed to the cyclical nature of markets: “While timing of rebounds will always be difficult to predict, it’s reasonably likely we will see a rebound in the next 12 months – in part also as it will be an election year and there will be some government stimulus.”
At the other end of the spectrum, government and education sectors both languished at 2.0/5, joined by entertainment and leisure (2.2/5) and utilities/energy (2.4/5).

An education leader summed it up bluntly: “Less optimistic. The market’s tougher, costs are higher, demand is weaker, and nothing about the outlook gives confidence that things will improve anytime soon.”

University of Auckland vice chancellor Dawn Freshwater says global headwinds are adding to the pressure: “Global trends in higher education indicate a wave of additional threats that the education sector has to face into.

“Public interest and government oversight of research will increase the importance of brand ambassadors and continuing to negotiate the social contract with society as a whole around universities.”

Energy executives struck a similar note of caution. “While demand in our sector is strong, translating that into broader economic growth is still a long game,” says one leader. “It requires bipartisan support. We cannot tax our way out of the current state.”

Mood of the Boardroom: Leaders back model of partnership (NZ Herald)

A strong majority of business leaders back the idea of reviving a formal partnership between government, business, unions and sector leaders to tackle New Zealand’s most pressing challenges.

In the Mood of the Boardroom survey, 68% say they would support the model, while 14% oppose it and 18% are unsure.

Many CEOs see clear merit in bringing diverse voices together. “Anything that tries to unify stakeholder groups has to be beneficial,” says Deloitte chairman Thomas Pippos. The CEO of a large law firm calls it “an excellent idea, a credible forum to genuinely listen and focus on solutions for a few key priorities.”

Supporters point to overseas examples, with Sanford managing director David Mair, noting a model “à la Ireland, but must include education”. Others say a refreshed, time-bound forum could help with skills, technology adoption and productivity. As Institute of Directors chief executive KirstenPatterson puts it: “New Zealand’s challenges are too complex for the Government to solve on its own. We need a genuine partnership.”

But not everyone is convinced. The New Zealand Initiative chairman Roger Partridge warns against privileging a few organised voices over others and the risk of “lowest-common-denominator compromises, more bureaucracy and less accountability”. He says “government should consult widely, but policy must be driven by the public interest, not insider deals with a handful of stakeholders”.

Others doubted unions’ willingness or ability to contribute constructively, a top recruiter saying: “I don’t believe unions have an intention to address challenges. The teachers’ union, for example, has created an industry of underperformance.”

For some, it came down to execution. “If they can get things done and not slow things down, it could work,” says an energy chairperson. A banking boss is more sceptical: “It sounds like such a good idea, but I’d be dubious it would get off the ground and deliver tangible action.” Tim McCready

Mood of the Boardroom: CEOs urge more Reserve Bank OCR cuts (NZ Herald)

Mood of the Boardroom: CEOs urge more Reserve Bank OCR cuts (NZ Herald)

A strong majority of business leaders back the Reserve Bank cutting interest rates further to support the economy. In the Herald’s Mood of the Boardroom survey, 78% say the official cash rate (OCR) should continue to fall, while just 11% oppose further cuts and 11% are unsure.

The OCR was most recently cut by 25 basis points to 3.00% in August 2025 – its lowest level since 2022, reflecting ongoing efforts by the Reserve Bank to support a sluggish economy.

The OCR has been on a steady downward trajectory since August last year, with multiple cuts already enacted and further reductions likely before the end of the year.

Many CEOs see lower rates as essential to kick-start growth. “It is critical if NZ is going to get moving again that interest rates come down, and much faster than the current plan,” said one respondent. Another added, “2.50% to get the economy firing again.” Several argued that cuts would only be effective if paired with more supportive bank lending and other government policies to ease cost pressures.

Others urged caution. “Rate cuts alone don’t seem to be shifting the dial,” said one executive, who stressed that long-term stability matters as much as short-term relief. Another noted, “The OCR is neutral at present. Weak growth says cut more, but there seems to be an undercurrent of pricing pressures too.”

Inflation concerns were a recurring theme. “The Reserve Bank should only reduce the OCR if it believes that is compatible with its objective of keeping inflation at between 1–3%,” said one business leader. Another warned, “We certainly would not want to go back to the inflation experience of the post-Covid time.”

Some respondents expressed frustration with the central bank’s culture and communication. “They have been too slow to cut rates and should move more swiftly,” said an SME boss, while another criticised the bank for being “very inaccessible and detached from the business community.”

A few executives stressed that monetary policy cannot carry the load alone.

“Yes, but not in isolation — pair rate cuts with sensible lending settings so banks can responsibly back first-home and other buyers,” suggested one. Another added: “The OCR is not the only solution.”

Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

New Zealand’s boardrooms are split on the outlook for projected staff numbers, with the Mood of the Boardroom survey revealing a near three-way divide over whether headcount will increase, remain steady or decrease in the year ahead.

Asked if they expect to make changes to staff numbers over the next 12 months, 30% of respondents say they anticipate increasing staff numbers, while 33% expect to cut back. A further 35% forecast no change, with the remaining 2% unsure.

The mixed sentiment underscores a business environment where leaders are juggling cost pressures, technological disruption, and the demands of growth.

One executive in the tourism industry was blunt: “We have and continue to reduce staff numbers as we take costs out.”

A logistics boss notes, “We are rolling off a period of intense capital project delivery.”

Technology is a recurring theme in workforce projection. Several CEOs pointed to automation and AI reshaping the size and shape of their workforce.

“Technology advancements could well result in fewer jobs in some areas (corporate), whereas as assets and the balance sheet grows, and there is more development and construction going on, the workforce is likely to increase,” says one experienced chairperson.

Others spoke of balancing efficiency with future capability.

“We’ll continue to adjust resources to match demand and ensure the business stays efficient — focusing on keeping essential roles while scaling back where necessary,” says Anne Gaze, of Campus Link Foundation.

Some businesses remain in contraction mode. The CEO of an engineering firm says: “Due to the industry slowdown, our business has had to make difficult decisions around staff right-sizing … Looking forward, it is more about focusing on what skills and capabilities are required in the future.”

There are also generational concerns.

“We have dropped significantly in the last two years but hope to be able to start recruiting graduates again, subject to projects progressing in the economy,” one executive in the construction sector says, warning younger staff have been “hit the hardest” as clients resist paying for inexperienced talent.

For others, their infrastructure pipeline is expected to drive demand: “The significant infrastructure development programme underway will continue to gain momentum in the year ahead and associated staffing growth will reflect that,” says Auckland Airport chief executive Carrie Hurihanganui.

Mixed opinion on access to skilled talent
Business leaders are mixed on whether attracting and retaining skilled talent has become easier or harder in the last year, but the overall sentiment leans toward it being a moderately challenging issue.

On a scale of 1 to 5, where 1 equals very difficult and 5 equals very easy, the average score was 2.95/5.

For some, access to skilled labour has eased in the past year, with a softer economy and higher unemployment increasing the pool of available candidates.

Several note they are receiving record numbers of applications, describing the current climate as an “employer’s market”.

Executive director of the Retirement Villages Association, Michelle Palmer, says: “We’ve seen a huge number of applications for roles in the past six months — unprecedented numbers — a sign of the times in the current unemployment environment.”

An education provider observes that “redundancies have released a lot of competent people into the market”, but says retaining top performers remains difficult.

Yet many stress that the challenge is far from solved, particularly in specialised fields.

Advanced technology, R&D, digital, AI, engineering, and data analytics are all cited as areas where skills are scarce.

The lure of higher wages in Australia and beyond features prominently, with multiple executives highlighting a “flight to Australia” across professions including law, health, and infrastructure.

One leader describes it as “alarming”, while another says young lawyers are now departing earlier in their careers than ever before.

Cordis managing director Craig Bonnor adds that “talent retention of Kiwis in the early to mid-career phase is the most challenging”.

At the same time, pressure is coming from within New Zealand. Downer NZ chief executive Murray Robertson warns that “the entry of international firms into the New Zealand market for major projects is placing additional pressure on local businesses to retain key talent.”
Pipeline certainty in infrastructure also looms large. An engineering leader cautions that “without certainty in the pipeline, we won’t attract the skilled workforce required”.

Regional differences are also apparent. Institute of Directors CEO Kirsten (KP) Patterson says Wellington is increasingly at risk of losing its brightest talent, “as they are losing confidence that they can successfully raise careers and families in a vibrant capital city”.

Immigration settings drew mixed views. Some report improvements under the current government, making it easier to recruit nurses and caregivers, while others say changes had done little to ease shortages in critical, high-demand sectors.

As one technology leader puts it: “For AI skills, things are very, very difficult. But for other roles, it is typically not a concern.”

While New Zealand’s lifestyle and reputation for innovation continue to draw talent, executives stress that retention depends on competitive pay, career development, and building purpose-driven organisations.

As Harcourts managing director Bryan Thomson sums up: “The business world relies on talent acquisition and retention.

“Now as always, this is the number one challenge for every leader.”

Mood of the Boardroom: The KiwiSaver conundrum (NZ Herald)

Mood of the Boardroom: The KiwiSaver conundrum (NZ Herald)

A narrow majority of business leaders believe New Zealand’s large capital pools should play a greater role in funding critical infrastructure.

Just over half (54%) of respondents to the Mood of the Boardroom survey say infrastructure development should rely more on investment from the NZ Super Fund and KiwiSaver funds. A further 28% are unsure, while only 18% oppose the idea.

Supporters see an opportunity to keep capital working at home and create long-term benefits.

“KiwiSaver funds will have $295 billion to invest in New Zealand if the opportunities are there,” says Simplicity founder and chief executive Sam Stubbs.

“It will create many high-paying jobs. But if sent overseas, it will create exactly zero jobs at home. Go figure.”

Some point to international precedents where retirement savings have been successfully channelled into infrastructure, with one calling it a “proven model globally.”

Others urge caution, noting that fiduciary duties require investment decisions to prioritise returns. “It depends on returns. The primary focus is to ensure we have sufficient to meet retirement commitments,” says a banking CEO. An experienced chairperson warns against “poor quality, poor return projects promoted by politicians” that risk good money chasing bad.

A similar point was raised by Milford Asset Management CEO Blair Turnbull: “We strongly support sustained investment in New Zealand’s infrastructure, underpinned by long-term bipartisan planning and a robust governance framework that leverages both public and private capital. In the context of KiwiSaver, we welcome the expansion of listed infrastructure opportunities, provided we remain anchored to the scheme’s core purpose: safeguarding long-term retirement savings.”

Executives stress the need for strong governance, commercial mechanisms such as tolling, and bipartisan planning. Some also argue for policy reform, including compulsory KiwiSaver and an Australian-style superannuation model to build a larger domestic capital base.