Helen Clark, Iraq and 'nukes' - what our CEOs think

Prime Minister Helen Clark's strong stance on Iraq has split the business community.

Many top chief executives and chairpersons (65 per cent) believe Clark's independent foreign policy stance and defence strategy is hindering economic growth, particularly relations with New Zealand's traditional allies Australia and the United States. They take issue with the Government's line that trade and security are not linked.

But others (10 per cent) believe Clark's independent line has opened new opportunities with Europe and Asia, particularly China.

Said Beca Group chairman Gavin Cormack: "Our relations with our two most important allies and trading partners, Australia and the US, are being adversely affected by our anti-nuclear policy and low defence expenditure."

Griffin's Foods managing director Tony Nowell said Australia had a "bee in its bonnet" over our lack of defence commitment. "If you can't rely on your friends and neighbours, who can you rely on?"

But others took a neutral stance (23 per cent). "The stance is definitely hindering relations," said one chairman. "But this is an acceptable cost for a policy and strategy I agree with."

The survey did not directly probe attitudes to New Zealand's bipartisan anti-nuclear policy, now under review by a National Party strategy team. But a number of players said New Zealand continued to pay a price for banning nuclear-propelled ships. Some put New Zealand's failure to open free-trade negotiations with the US down to the controversial policy. "We are perceived as anti-American, left-wing socialists and politically correct," said one.

Others questioned whether a "flip-flop" on Iraq was sensible. "You are either going to Iraq or not ... not say 'no', then fall over."

There was a general sense that New Zealand ought to take its place and support its allies. "Just as our clients want us to do something for them, so do our trading nations," said one businessman.

But the head of a legal firm said New Zealand seemed to be keeping its principles intact on Iraq, "a hard balance to achieve".

Canwest chief executive Brent Impey agreed. "The correct decisions [were made] on Iraq, and now support for the effort in Afghanistan."

SMEs linked Government foreign policy and economic growth for the first time. Some 47.7 per cent said foreign policy and defence strategy was hindering economic growth; 47.1 per cent were neutral or could not give a definite answer. Just 5 per cent said foreign policy and defence strategy were helping economic growth.

Some people identified New Zealand's failure to strike a free-trade deal with major trading partners (other than Australia) as a reflection of a flawed defence policy. "Why would they bother with a bunch of chest-beaters?" asked one person. There was little popular endorsement of the Iraq war. One respondent said New Zealand had made a wise decision over Iraq even if it had curtailed some future economic activity.