Mood of the Boardroom - what 300 company chiefs want

The Herald's "Mood of the Boardroom" survey, conducted in association with Business New Zealand, has been an ambitious initiative.

We set out to capture the views of some 300 business chiefs - from the CEOs of major corporates like Fonterra, the co-operative owned by 13,000 dairy farmers, and Telecom, through to owner-operators of small to medium enterprises. Some 120 chief executives and company chairs engaged in the exercise. They included representatives from Deloitte/Management Magazine's Top 200 List, the Business Council for Sustainable Development and New Zealand Business Roundtable. The survey has been augmented by chief executives from some major Government (national and local) trading enterprises, and 180 responses from the small to medium enterprises represented by Business New Zealand.

New Zealand's business players are reasonably optimistic about the global outlook.

The Iraq war's effect on confidence in the international economy has lost its potency. Concerns over terrorism have receded - despite Madrid - and they have got used to President George 'Dubya' Bush and his brand of US hegemony.

But within New Zealand it is more complex. Business chiefs are relatively upbeat about overall prospects - but less so about their own industries' condition than this time last year. Many will hire more staff over the coming year. Skills shortages may have to be overcome in some areas.

But with a predicted slowdown in domestic growth later this year, company chiefs are preparing for a tougher environment. It is hoped new Labour Minister Paul Swain will take action to restore the critical relationship between Government and business. This was damaged badly when a raft of employment-related legislation was foisted on business just before Christmas without adequate prior consultation. On top of Treaty of Waitangi issues, it comprises a major negative.

But there are some high-points. Finance Minister Michael Cullen wins brownie points for his tight control of fiscal policy and his bulging $6.1 billion Budget surplus - which business wants returned through corporate tax cuts.

Cullen's visionary moves to form a "single market' with Australia have also won the business sector's support.

There is also recognition that National Leader Don Brash's stronger performance has had an effect.

But major concerns over infrastructure and the security of energy supply must be tackled to support future economic growth.

Carter Holt Harvey chairman John Maasland spoke for many when he questioned, "Why would you want to invest much more in New Zealand when you're facing energy shortages and Kyoto?