Every year, the Herald surveys this country's chief executives to ascertain and assess their views on the outlook for their businesses and the economy, and the steps they believe would improve their lot. Understandably, the Mood of the Boardroom published today is replete with optimism. More than three-quarters of the 112 chief executives surveyed expect to make more profits over the next 12 months, and nearly 60 per cent expect to employ more people. More than half anticipate increasing capital expenditure. Such confidence bodes well for not only them but all New Zealanders.
Part and parcel of this attitude is their view of the Government as the September 20 general election looms. Ninety-seven per cent would prefer John Key to win a third term. Just 2 per cent want David Cunliffe to prevail. Indeed, the Labour leader is rated only the eighth-best performing senior MP in his party. The admiration for Mr Key is not unalloyed, however. In last year's survey, the chief executives reckoned Finance Minister Bill English had outperformed him. That view is repeated this year, and bubbling beneath the surface is an increased level of doubt about the Prime Minister.
The Dirty Politics revelations have had virtually no impact on the Government's standing in public opinion polls. Many chief executives believe, however, that the issues of probity raised by Nicky Hager's book have damaged "Brand Key". Some of his political capital has been eroded. They are also disappointed that the revelations have distracted attention and prevented a full debate on fundamental issues such as a capital gains tax and personal tax cuts.
Such observations are pertinent. So, too, are the chief executives' view of areas in which the Government has come up short. High on that list, and rightly so, is a realisation that it is irresponsible to rule out a rethink of the age of entitlement to NZ Superannuation. Ninety-four per cent of respondents want the next government to clearly signal options and timeframes for changing eligibility. More than 60 per cent are further down the right path in favouring the Flexisuper option championed by the United Future leader, Peter Dunne.
Less convincing is the beating of some familiar drums. Concerns over a shortage of skilled workers and labour productivity are restated, as are criticisms of regulation contained in the likes of the Resource Management Act. But as the Herald's economics editor Brian Fallow points out, the solution to the first woe is at least partly in the chief executives' hands through increased salaries, accelerated training and recruitment overseas. Productivity, for its part, can be tackled through increased investment in software, research and development, market research and organisational change.
