The Mood of the Boardroom

The Herald's annual Mood of the Boardroom survey of CEO's has been undertaken and the results released. And by and large, those surveyed are happy with the way things are going. Bill English gets a special vote of confidence as  the Herald reports:

Finance Minister Bill English has emerged as the hidden "star" of the Key Government pole-vaulting boss John Key for the second year in a row to emerge as the highest rated Cabinet Minister by leading chief executives.
"Bill English has really been an exceptional Minister of Finance," said BusinessNZ CEO Phil O'Reilly. "He has been sober, boring and sensible but the macro settings have been just right. He deserves more credit for that."
English's "Southland determination" to get the country's books back into order and "dour, no-nonsense personality" are cited by chief executives as making him the perfect foil for a populist prime minister. "He can just get on with the business," said a financial markets chief.
The Herald's 2013 Mood of the Boardroom CEOs Survey, in association with BusinessNZ, found widespread support for English's management of the economy.
Even the PM's own highest personal rating was for economic management rather than other attributes such as leadership. A factor which some chief executives said should really be ascribed to English.
The Finance Minister's ability to deliver on his aim to post a Budget surplus in 2014/2015 has been buoyed by growing taxation returns off the back of stronger corporate profits; the proceeds of the partial privatisation programme and a determination to keep government spending under control.

Here's the results summarised in graphical form:

 

And the CEO's reckon that the John Key-led government is going to leave New Zealand a much better place than what it inherited; read on:

In his post-Budget speech to the Trans Tasman Business Circle John Key spelt out how he would like New Zealanders to remember his government. Key said if the Government can achieve a step change in New Zealand, "in years to come they will say 'I think that it held its nerve and fundamentally guided us through the global financial crisis and the Christchurch earthquakes and it set the country up to grow during a period of dramatic change in Asia' and that is going to be a far bigger gift.
"New Zealanders will have jobs and families will have independence."
Seventy-two per cent of chief executives responding to the CEOs survey agreed that the Key-led Government has achieved that positive legacy; 9 per cent said No and 19 per cent were unsure.
"I think it is well on the way to potentially achieving that legacy but I don't think it can declare victory just yet," said Deloitte chief executive Thomas Pippos. "John seems to have the bit between his teeth now," observed a capital markets player.
"He is now showing leadership as he is mandated to show. Convention centre, infrastructure investment in Auckland, explaining the importance of the China relationship, MoM.
"He is elected to lead and not get distracted by the irrelevant."

There's no shortage of good economic news. Inflation is at record lows, as are interest rates, with no increase expected until at least 2014. The tax take is increasing, unemployment is falling, and yesterday there was news that the export sector has rebounded strongly and today Stuff is reporting that the farming sector has had a major boost in confidence.

Bill English took on the finance portfolio at the most challenging of times. He has been conservative; unwaveringly so. But that has been absolutely the right approach, and his conservatism is now paying dividends. And CEO's agree:

Hellaby Holdings John Williamson said he initially had doubts about the vigour of Key's economic management.
"New Zealand's performance relative to others suggests Key and English have both steered the economy very well through the global financial crisis."
Take a bow Bill.

Indeed; with each new and more favourable indicator, Bill English is proving his critics wrong. Steady-as-she-goes was exactly what New Zealand needed.