CEOs feel strongly about Government's economic agenda

SOES:

Most CEOs (78 per cent) are against moves to make SOEs "agents of economic transformation" through expansion outside their core businesses.

Nearly all chairs were strongly opposed: "A very dangerous policy. Many SOE boards are populated with party favourites, and some SOEs are influenced politically. Further, most prudent boards think very hard about offshore investment and need experience of doing so, either on the board or by going at it all slowly. SOEs are not equipped and will lose millions," said a meat industry chair.

SOE chair: "They are public utilities in general, and as such should focus on productivity and efficiency."

Motoring CEO: "Trevor Mallard [Economic Development Minister] is encouraging SOEs to get into business. Shouldn't they be supporting business to succeed?"

Others pointed out there was "plenty of room" for expansion within core businesses and SOEs - particularly from the energy sector - should ensure NZ's energy supplies were underpinned before moving into "adjacent" business or concentrating efforts on offshore expansion.

From the support camp (22 per cent), some CEOs are aligned with the NZ Institute, whose CEO David Skilling has been strongly influential in the development of proposals to expand the SOEs' role.

Just sell, said another: "Privatise them instead - stem the rate of growth of bureaucracy."

COMPETITION:

"Leave the Commerce Act alone to preserve competition and consumer choice" is the clear message from 79 per cent of CEOs and chairs surveyed on Cabinet Minister Lianne Dalziel's initiative to examine whether companies should be able bulk up domestically to better compete offshore.

FMCG boss: "We want increased competition, but in a way that preserves consumer choice. Watch out: Woolworths/Progressive merger and transtasman terms - ultimately detrimental to consumer choice."

FMCG CEO: "There are pseudo cartels abounding in energy, banking, credit cards, petrol/diesel that need to be regulated in the absence of an alternative redress process."

Supporters had a different take: "The Commerce Act assumes NZ is the entire market. It's not, the market is global but our law is not. Offshore international companies can use this to their advantage, not to NZ's advantage" - Auckland CEO.

Wellington investment banker: "Too much regulation of infrastructure industries based on a 'static' view of interests."

A capital markets player noted that there needed to be some stability and certainty on this score.

INFRASTRUCTURE:

Infrastructure bonds are already on the Cullen agenda, but 57 per cent of CEOs agreed with the proposition that the NZ Superannuation Fund (aka Cullen Fund) should be directed to invest in developing NZ's creaking infrastructure. Supporters stressed infrastructure investment should not be a blank cheque "only at commercial rates".

Auckland banker: "The word 'directed' is too strong. Part of the mandate should be the ability to invest if profitable opportunities can be found. The scope should not be limited to specific sectors or projects."

Among investment options: roads and transport infrastructure, all-weather airports, airport-to-city access in Auckland, sustainable energy generation, sewerage and water. Law firm boss: "You name it, there has been under-investment, and we are paying the price."