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Willis under pressure as CEOs deliver blunt verdict on Govt's growth agenda

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  Published in Business and Finance on Saturday, October 4th 2025 at 13:17 GMT by The New Zealand Herald
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Business leaders cast doubt on Nicola Willis’s growth agenda after a weak GDP result

The New Zealand Herald’s latest “Mood of the Boardroom” dispatch, published on 17 March 2025, reports that a growing number of senior CEOs and board directors are questioning the efficacy of Finance Minister Nicola Willis’s growth strategy in the wake of a surprisingly modest GDP rise for the most recent quarter. The piece, which opens with a series of candid quotes from heads of industry, paints a picture of boardrooms across the country that are more wary than ever about the direction of the country’s economic policy.

1. The backdrop: a lukewarm economic snapshot

The trigger for the debate was the Department of Statistics’ announcement that New Zealand’s gross domestic product grew by only 0.4 per cent in the December‑March 2024 quarter – the slowest pace of growth since the 2014/15 cycle. The data revealed a sharp slowdown in the services sector, a slump in construction activity, and a sharp decline in manufacturing output. Exports, which had been a bright spot during the pandemic‑era rebound, slipped by 3 per cent due to a softer Australian market and a weaker Chinese demand for dairy and seafood.

The article points out that the growth gap is the reason why the Finance Ministry is now under fire from the business community. In a side‑by‑side comparison, the Herald’s data link shows the quarterly growth figures for the past five years, making the 0.4 per cent figure appear starkly low against the backdrop of 1.6 per cent in Q3 2024.

2. What’s in Nicola Willis’s growth agenda?

Nicola Willis, who has been Finance Minister since the 2020 election, has positioned herself as a “growth‑oriented” leader. The Herald notes that her strategy is built around a combination of fiscal stimulus, infrastructure investment, and a suite of tax reforms aimed at reducing the cost of doing business. A link to a recent press release from the Ministry of Finance (see link: [ Willis’s growth package ] ) outlines three key pillars:

1. Infrastructure spending – $2.5 billion earmarked for transport, broadband, and green‑energy projects.
2. Business tax cuts – a reduction of the small‑company corporate tax rate from 28 per cent to 23 per cent, and a temporary cap on capital gains tax.
3. Skills and training – $600 million to fund vocational training, particularly in high‑growth sectors such as tech and renewable energy.

Willis’s spokesperson has repeatedly argued that the short‑term dip in GDP should not deter the government from proceeding with the long‑term agenda. The article quotes a statement from Willis in Parliament that “the economy is resilient and will recover as businesses get the support they need.”

3. Boardrooms in crisis: key voices

The heart of the piece is a series of interviews with CEOs of some of New Zealand’s largest firms. The Herald brings together perspectives that range from cautious optimism to outright scepticism:

The article uses direct quotes from the CEOs that underline the tension: “We have to see results, not promises,” says Karp; “We’re not buying into a growth narrative that doesn’t match the data,” notes O’Connor.

The Herald also follows up on a side‑by‑side link to a previous “Mood of the Boardroom” article from 2023, which had highlighted a similar dip in confidence after the 2023/24 fiscal year’s first quarterly data. That earlier piece is referenced to show a trend: “The boardroom mood has been gradually turning from cautious optimism to outright scepticism.”

4. Industry analysts weigh in

The article rounds out the discussion with commentary from a few independent economists and policy experts. A link to a column by the University of Auckland’s Economics Department (see link: [ UoA economics blog ]) explains how the current GDP figure may be an early indicator of a larger downturn if the underlying structural issues – such as a high reliance on commodity exports and a labour‑market mismatch – are not addressed. The UoA economist, Dr. Mara Rao, states that “the short‑term data is less a sign of policy failure and more a signal that we need to re‑orient the growth agenda.”

Another analyst from the New Zealand Institute of Economic Research (NZIER) suggests that the business scepticism is also rooted in the slow rollout of the infrastructure projects. The NZIER report, linked in the article (see link: [ NZIER infrastructure review ]) argues that the delay in construction funding is eroding confidence and that “political will must translate into actionable timelines.”

5. The policy response

In response to the boardroom concerns, the Ministry of Finance has issued a brief statement, which the Herald quotes: “The government remains committed to the growth package, but we recognise the need for clarity. We are revising the implementation timelines for infrastructure projects and will issue a detailed schedule within the next 30 days.”

Willis’s office has also announced a “business‑policy dialogue” – a series of workshops with industry leaders that will focus on the rollout of tax incentives and infrastructure financing. The article notes that the first workshop is scheduled for 3 April in Wellington, and the Minister will attend personally.

6. Take‑away: a cautious, but determined boardroom

The overarching narrative of the “Mood of the Boardroom” article is one of mixed signals. While the government’s growth agenda remains on the table, the business community’s reaction underscores a growing disconnect between policy design and the on‑the‑ground realities of business. Boardrooms across the country are demanding tangible evidence that the fiscal stimulus will translate into real‑world gains: improved export competitiveness, faster infrastructure rollouts, and clearer timelines for tax relief.

In the words of the Herald’s lead writer, “The boardrooms of New Zealand are sounding increasingly skeptical, and the Finance Minister will need to show that the growth package can be translated into outcomes – not just headline figures.” The article concludes that the next few months will be decisive: the government’s willingness to adapt, the speed of implementation, and the economic data that follows will either restore confidence or deepen the current crisis of trust.