Rotorua’s mayor says the Prime Minister Christopher Luxon’s comments to a business audience last week were him being honest, and he did not need to apologise.

"I don't think it's a time for our leaders in New Zealand to be soft. We need to know the truth. We need to be honest, and we need to set a pathway forward," said Tania Tapsell, who is aligned to Luxon’s National party.

Meanwhile, the Rotorua Business Chamber welcomed the apology, but hoped there was "genuine reflection behind it".

Luxon had told the audience at a Rotorua Business Chamber event on Friday that some businesses had a "parent-child mentality" and too often looked to the government for help.

His office later released a transcript.

On Monday he apologised, saying he was sorry his comments "did not properly acknowledge the challenges that many small business owners are facing".

"I didn't want to cause any offence. That's not what I intended to do."

Rotorua Business Chamber president Paul Ingram welcomed the apology, but hoped there was "genuine reflection behind it".

Ingram told RNZ small and medium businesses were the backbone of the New Zealand economy and it was important that the sector was taken seriously by "every government".

"Because collectively we have the ability to enable the growth and success that we're collectively looking for.

"I don't think we're looking for a handout. We're looking for understanding.”

The reflection he wanted Luxon to consider was that there was an understanding of what these business owners were going through.

He acknowledged some of the comments last week may have been "unintended", or as "sharp and as pointed as they were", and he understood Luxon came from a business background.

But he hoped there would be a consideration that whatever was going on in the economy translated into what was real for New Zealand businesses.

"For mum and dad businesses that have got a mortgage, the house is on the line."

Ingram said he would look forward to seeing what actions the government would take now to support small businesses going forward.

Overall, he said other parts of the discussion he "totally" agreed with — it was just the "whole parent-child narrative that came out that didn't really land very well".

Tapsell told RNZ the business community really appreciated having Luxon  in town.

She also acknowledged it was "tough times, and that was the context in which the question was answered".

But she said Luxon did not need to apologise because "he had a room full of people that was taking on his advice".

Tapsell did not attend the event and was told the feeling in the room afterwards was "definitely that they appreciated his thoughts on it".

"We need to get real in New Zealand," Tapsell said. "Sometimes it is us that actually needs to solve our own problems, and I feel like that's what he's doing not only in those comments but also actually in Parliament.

"So good on him."

Tapsell said Luxon was being honest, and that was "the best thing we can ask from people".

"At least he's not running us around in a circle, not answering the question, and honestly, that was appreciated and valued on the day in the room."

She said it was "very lovely" that he did apologise, and reflected Luxon's honesty and integrity, "he's being honest as he was in the room".

"It's a pretty big thing for a politician to apologise. This doesn't happen very often."

Tapsell said from the business perspective, he was answering a question in the context of difficult times.

"Yes, things are bad, but don't rely on government handouts - I can understand that as a mayor from a council as well. We've got limited resource. They've been quite clear at that."