Updated 11.00 am

Luxon ranked 15th best minister in Cabinet

Prime Minister Christopher Luxon says the aim is to have one system with "maximum levels of...
Prime Minister Christopher Luxon. Photo: RNZ

By Lillian Hanly of RNZ 

Prime Minister Christopher Luxon ranks 15th in Cabinet in a survey of senior business leaders who are also casting doubt on New Zealand's  economic performance.

The New Zealand Herald  has released its latest Mood of the Boardroom, which attracted 150 responses from chief executives and other leaders.

Luxon and Finance Minister Nicola Willis were out of Cabinet's top 10 performers, according to the results.

He scored on average 2.96 out of 5 where one is "not impressive" and five is "very impressive".

Herald head of business Fran O'Sullivan told RNZ's Morning Report programme today there were some standout themes in the survey.

"While people's confidence is starting to increase again it's not across the board - various sectors are thriving, others are not," she said.

"There's a bit of a question as to whether there needs to be more assistance in the economy for those firms, particularly those who have been hit by energy issues."

The chief executives who took part rated their confidence in the economy at 2.81 out of 5.

On the Prime Minister's performance, O'Sullivan said there were mixed findings.

"The big issue is, I think, he probably needs to listen more. He's got a mantra that has started to grate - and he knows that," O'Sullivan said.

"But those people who have travelled with him internationally do rate him, they see him as focused and driven and really acting in New Zealand's best interests.

"He rates very highly also when it comes to ensuring his Cabinet ministers are focused and delivering, he actually rates reasonably well on keeping a coalition together."

But O'Sullivan said Luxon did not score well for building business confidence, his own political performance and on transforming the economy.

"So on those areas he's got work to do."

Finance Minister Nicola Willis. Photo: RNZ
Finance Minister Nicola Willis. Photo: RNZ

'An ugly recovery, and people are feeling it'

Finance Minister Nicola Willis' performance scored an average 3.09 out of 5, ranking her 13th in Cabinet.

Willlis said people should continue to challenge her as the government attempts to aid the country's economic recovery.

She said she was the "face of finance and economic growth" and until that recovery was broadly felt and sustained, she expected people to challenge her, "as they should."

"We're having an ugly recovery, and people are feeling it."

Asked about political risk when taking on board the economic growth portfolio, Willis said government creates the condition for growth, but she was conscious it was other actors in the economy who individually contribute to growth occurring.

Willis spoke about this being a "difficult time" for the country.

"We have history of success, and I believe our tomorrows are going to be much more successful. We can be a powerhouse in the future."

Right now the government was "confronting issues that were not confronted for too long," she said.

"I mean decades, not just years. And so I'm afraid, John Key, I'm not letting you off the hook either," said Willis, speaking to the former National Prime Minister.

Asked if National had governed alone what would have been done differently in the past 18 months, Willis said there would have been less focus on "Māori-related issues."

"That's a blunt but bold assessment. You would have seen us move some pieces of legislation with more pace, because not as many compromises would have been required on the way through."

Willis denied wanting to be Prime Minister. "I'm not running for prime minister" she said in response to a question if she'd rule out running.

She was also asked whether Luxon was "safe", responding that he was "completely safe."

"The thing that really struck me when I read the report was how invisible it is to many the coalition management that he deftly does behind the scenes to create stability out of three quite different parties," Willis said.

"He's doing that extremely well."

She also said it was underestimated how he had put the "right talent in the right places" in Cabinet, and had backed those people to succeed, referencing Ministers Mark Mitchell, Simeon Brown and Erica Stanford.

O'Sullivan said for Willis, the survey's findings were not about where she was going wrong, but about where she could be putting her efforts.

"They've embarked on an economic transformation and growth agenda and at this stage of the game there's only marginal support for that. She's still got to build confidence in that and roll it out in a concerted way."

O'Sullivan said respondents did not like Willis "personalising issues", and cited a recent meeting at the Beehive over high butter prices with Fonterra chief executive Miles Hurrell.

"That didn't go down well... I think really it's tone as much as anything," O'Sullivan said.

Immigration Minister Erica Stanford. PHOTO: RNZ
Erica Stanford. PHOTO: RNZ

Stanford ranks highly

Willis spoke about being "delighted" Erica Stanford had ranked so highly in the report, with an average of 4.38 out of 5.

"I am delighted to see you celebrate Erica Stanford, as I and the Prime Minister do."

She said the agenda of making sure kids learn the basics brilliantly, proper vocational pathways and national qualifications "we can be proud of" was critical to the country's future.

"And it won't affect the next quarter's GDP result, but it is vital for getting the structural improvement you, like me, want to see."

Stanford was asked by RNZ yesterday whether she wanted to be Prime Minister. She said she loved her job and wanted to be the Minister of Immigration and Education for the "next 10 years."

"I've got a lot of work to do, and I'm very happy where I am."

She also maintained Luxon had her backing and was "very pleased to be and honoured to be part of his Cabinet."

"He has given me some incredible opportunities, as has the Minister of Finance, to do my job and to do it well and I'm very grateful for that."

'Working hard to deliver growth'

 

National MP Chris Bishop told Morning Report the government would take the feedback from the survey on board and it reflected the tough time New Zealand had gone through as a country.

 

"We are working hard to deliver growth... there's some quite good things mentioned in there that the government is working on, making good progress... always want to do more and go faster.

When asked how he felt about being ranked higher than Luxon by the survey, Bishop said he "didn't focus much on that stuff".

Labour's Kieran McAnulty told Morning Report the survey showed people across the board were interested in an alternative approach to the government.

The Mood of the Boardroom also showed a strong majority of business leaders backing further cuts in the Official Cash Rate, with 78% saying it should fall further.

Just 11% opposed further cuts to the OCR, while another 11% were unsure.