Nicola Willis rated: Business leaders mark finance minister’s first year

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The boardroom is calling for more than just fiscal prudence. Business leaders want a more ambitious, clearly articulated plan and a more engaged approach with the business community.

The Mood of the Boardroom 2024 reveals that 78% of top CEOs and directors responding to the NZ Herald’s survey are
confident in Finance Minister Nicola Willis’ economic leadership, while 8% are not, and 14% remain uncertain.

Willis has had a swift rise to one of the Government’s top jobs.
She entered Parliament in 2018, after holding senior management roles at Fonterra focused on global trade strategy. Following Judith Collins’ ousting as National leader in 2021, Willis became deputy leader under Christopher Luxon.
In 2022, she took over the finance portfolio from Simon Bridges, and following the 2023 election was appointed New Zealand’s 43rd Minister of Finance in the new coalition Government.
Willis also serves as Minister for the Public Service, Minister for Social Investment, and Associate Minister of Climate Change.
She delivered her first Budget in May, calling it the “clean-up job New Zealand needs”. Despite critics from some quarters, she upheld National’s key campaign promise of tax cuts. Funded through significant public sector savings and targeted revenue measures, Willis’ approach was seen as a balancing act between fiscal responsibility and delivering on voter expectations.
Jarden managing director Silvana Schenone says she brings a refreshed and realistic perspective to the challenges New Zealand faces.
“She is competent and confident, but has major challenges ahead of her,” says a lobbyist, capturing the general sentiment of cautious optimism.
Others are reserving judgment, citing the early stage of her tenure.
“Almost a third of the way in, and I still want to say ‘early days,’ so perhaps that means I’m not confident yet,” says the head of a professional services firm, reflecting a wait-and-see attitude among certain business leaders.
Deloitte CEO Mike Horne echoes this sentiment: “Tentative at this point.
“She has faced into some of the fiscal issues that she inherited but as yet, we haven’t seen a clear direction on how to move forward to a more sustainable, longer-term solution.”
Willis’ dedication and work ethic have not gone unnoticed.
“She is an extremely hardworking minister who has taken the tough, politically risky calls,” commends Freightways chair Mark Cairns, a member of the Ministerial Advisory Group tasked with providing independent advice on the future of KiwiRail’s inter-island ferry service.
The issue remains unresolved, with two rail-enabled ferries initially scheduled for delivery in 2026 under a plan agreed to by the Labour-New Zealand First coalition in 2018. Since the Coalition Government required KiwiRail to cancel the ferry contract nine months ago, the future of the country’s inter-island ferry service remains unresolved.
Willis’ focus on fiscal discipline is applauded. Her efforts to cut Government spending and seek efficiencies in public service delivery are seen as necessary first steps.
“The Finance Minister inherited a hospital pass from the previous Government,” says Roger Partridge, chair of The New Zealand Initiative.
“After two decades of cross-party support for fiscal responsibility, her predecessor threw that consensus out the window with his post-Covid budgets.”
Partridge emphasises the need for the Government to restore New Zealand’s reputation for fiscal prudence while ensuring economic resilience in the face of potential future challenges.
An executive from the energy sector describes Willis’s start as “solid”, acknowledging her limited executive experience but recognising she has been quick to get up to speed.
“Cost-cutting and getting the Government house in order is a hygiene factor. She is developing fast and there is much to be hopeful about. She has great presence countering for the Prime Minister’s absence within the business community.”
Despite the strong support for Willis, CEOs and directors do not hold back feedback that recognises her accomplishments while also highlighting areas that need more focus.
The boardroom is calling for more than just fiscal prudence. Business leaders want a more ambitious, clearly articulated plan and a more engaged approach with the business community.
Chris Quin, CEO of Foodstuffs North Island, appreciates Willis’s efforts to curb excessive Government spending but adds: “It would be good to hear more from the Government about their economic growth story. New Zealand doesn’t feel like an easy place to do business right now.”
An agribusiness leader agrees, highlighting the need for a growth strategy: “Cutting costs in wasted areas is one thing, but we need to grow the economy. Be clear on those spend areas and how they will contribute to growth.”
This call is echoed by a major law firm CEO, who believes Willis needs to have a greater focus on growth areas, not just cuts in Government spending.
“The five pillars are good, but where is the meat on the bone?” asks one public sector CEO, referring to the Government’s economic strategy — building infrastructure for growth and resilience; lifting educational achievement and skills; strengthening trade and investment; promoting innovation, science, and technology; and improving regulation — but pointing to a lack of detailed plans to back them up.
KiwiRail CEO Peter Reidy urges Willis to “engage and listen — be open to alternative perspectives to help Government make considered choices that impact international reputation and exporter/importer confidence.”
This is a sentiment shared by many who believe that more decisive communication and transparency on key issues are critical to building trust.
A construction boss advises: “Communicate the steps of the plan, this is critical to gaining confidence in the plan for improvements.”
However, there is also criticism of recent policy decisions, particularly around tax cuts and property investment incentives. The reinstatement of full interest deductions for residential property, costing $2.9 billion — over $800 million more than what National had originally budgeted — has been contentious.
“Prioritisation of property investment versus investment in the productive economy is concerning,” says Uno Loco CEO Blair Glubb, who wants to see more pragmatic incentives for business growth.
“Infrastructure vs tax cuts?” asks Bagrie Economics managing director Cameron Bagrie. “The choice was pretty simple, but populism dictated.”
Willis has established a Social Investment Agency, charged with working across government departments to intervene early and break cycles of dependence, intergenerational poverty, and disadvantage.
It is also responsible for ensuring that the $70 billion in Government spending on social services delivers meaningful results and ensures a focus on the Government’s public service targets.
From 2025, the agency will have $12 million annually to fund services from community groups, iwi, and NGOs.
Last month, Police Commissioner Andrew Coster was appointed as head of the new agency, a role considered highly influential because of the agency’s significance to the Government and Willis.
The need for further investment in infrastructure and social areas is a recurring theme among respondents.
Morrison CEO Paul Newfield sees a broader scope for Willis’ vision, advocating for policies that will improve New Zealand’s long-term economic and social well-being over the next two decades.
“Better education, increasing savings rates and high-quality density in our major cities that will result in more affordable housing with better infrastructure,” he suggests as priorities.
Harcourts Group managing director Bryan Thomson wants a clear path for investment in social housing and support for those less fortunate. “The economic reforms won’t work if people are left behind,” he warns.
As Willis navigates the complexities of her role, the business community remains optimistic, hopeful that her actions to date will evolve into bold, transformative action.
They say with the right balance of fiscal discipline and visionary leadership, there is potential for her to drive lasting positive change in New Zealand’s economic landscape.
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