Fran O'Sullivan: Top marks for the circuses, now what about the bread?

The National Government has won plaudits for a successful Rugby World Cup, but some CEOs have pointed out that praise should also go to Auckland, the RWC 2011's chief, Martin Snedden, and the previous Labour administration. Picture /APN

New Zealand's successful hosting of the world's third-largest sporting tournament was the highlight of the Key Government's crisis-ridden three year term.

It meant John Key went into the election campaign with the benefit of a strong tailwind of national optimism as a result of the All Blacks' Rugby World Cup win.

This comes through strongly in the Mood of the Boardroom 2011 election survey.

The National-led Government's economic programme was impacted by the Global Financial Crisis, domestic recession, the Canterbury earthquakes, the $1.75 billion bailout of South Canterbury Finance and the downgrading of New Zealand's credit rating. But it still managed to orchestrate a "tax switch" and retain broad business confidence for most of that period.

The election survey reveals business leaders have considerable impatience with Key's style and want him to step up to the plate and confront challenging issues, if he wins a second term. But Cooper and Company chief executive Matthew Cockram said it was "all up an outstanding performance in extremely testing circumstances".

BMW New Zealand's Mark Gilbert agreed saying the Government deserved an "excellent report card".

Acknowledging that New Zealand was dealt a tough hand from the Global Financial Crisis, the chief executives were asked to rank the Government's performance in several key areas.

Hosting the successful Rugby World Cup topped the list. But several CEOs took a jibe at Rugby World Cup Minister Murray McCully, one saying the success of the event was "more due to Martin Snedden than McCully" another pointing out that "Auckland did a fantastic job on RWC!"

"McCully's RWC intervention was heavy handed and misguided," observed Porter Novelli managing director Jane Sweeney.

"I think he misread the situation and if you took an opinion poll of his weighing into the situation I think it would be regarded as a cheap shot at Len Brown that backfired."

'I'm not sure the Government can take credit for the Rugby World Cup - although they would have had to answer for a disaster," added South Pacific Pictures CEO John Barnett. "But the previous administration secured it and set it up. The disaster response has been mixed, better in Christchurch than the Rena."

Some believed that - irrespective of the domestic crises - New Zealand faced a relatively "benign environment". "I wouldn't say we were dealt a tough hand in comparison to other economies such as the UK, US and Europe," said an energy sector CEO.

Key still presides at the top of the Cabinet ranking list.

Deputy Prime Minister Bill English has climbed back to the number two position in this year's survey. Other ministers to make the top eight are Steven Joyce, Tony Ryall, Tim Groser, Judith Collins, Paula Bennett and Chris Finlayson.

But Gerry Brownlee - who is a number three in Key's Cabinet - has dropped back in the popularity stakes since being drafted as Key's point man for the Canterbury earthquake recovery effort. The CEOs were asked to rate only those ministers who were continuing in politics. Commerce Minister Simon Power - who starts as head of private banking at Westpac in the New Year - was singled out as: "the best Minister by far", a "big loss to National" and an "exception".

Two areas where the Government has struggled were its failure to maintain NZ's AA plus credit rating and its handling of the failure of South Canterbury Finance.

"There are circuses and bread. The circuses have done well, the hand of comfort has been superbly extended by John Key, but the bread and butter of business is largely the responsibility of business not the Government," said a company chairman. "The Government dropped the ball on the one thing that it should have got right, the maintenance of our credit rating."

An agriculture sector chief executive said that, in general, the National Government's management of the hand it had been dealt has been good. "I think South Canterbury cost a bit much ... Was this politics ahead of minimising the cost?

A fast-moving consumer goods company chief took issue with the Government's approach to the Christchurch earthquakes. "It's time we told the truth to Canterbury and everyone else in NZ - the government can't afford to keep dishing out money.

"While I am deeply sympathetic to anyone involved in a disaster or otherwise, this is the only country I know of that is writing a cheque to every individual involved. It's unbelievable what people's expectations are and they are being poorly managed by politicians and a left-leaning media alike."

Despite some rumblings, it is clear that English's tax switch has left many businesses better off.

Eighty-one per cent of respondents to the election survey believe their business is better off as a result of the 2009 Budget changes.

The reforms included increasing GST to 15 per cent, reducing the company tax rate to 28 per cent removing depreciation on buildings and changing the thin capitalisation rules (related to interest rate deductibility) for inbound investors.

But 12 per cent said they were affected: among the losers were property companies, telcos and energy companies.

Mainfreight managing director Don Braid said the reduction in company tax to 28 per cent was offset by the depreciation on buildings as his company owns a large amount of property. "The current corporate tax structure is flat; reduced levels of corporate tax are required to encourage more investment."

-Live streaming of the debate between Bill English and David Cunliffe will be on nzherald.co.nz from 7.50am today.