Prime Minister Christopher Luxon faces questions over claim business sector is ‘negative’, should act like an ‘adult’

Prime Minister Christopher Luxon is set to face questions after labeling a business leader's bleak economic outlook as "negative" and advising businesses to behave like "adults." The National Party leader's remarks, made at a Rotorua business event, have drawn accusations of being out of touch, with Luxon suggesting a "parent-child mentality" between the government and businesses.

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It’s been really tough out there for businesses. I go into cafes and small businesses around the country wherever I can when I’m visiting schools and talk to business owners, and it has been really rough.

Luxon later stated he was "disappointed" with the media coverage of his comments, though he did not dispute the accuracy of the reports. He claimed the broader conversation at the event was "very good" and pointed to positive economic indicators. He also asserted he did not intend to "cause offense."

Senior National MP Erica Stanford, while fronting a separate media conference, indicated Luxon had addressed the matter on the radio. Stanford acknowledged the significant challenges faced by businesses, stating, "It has been really tough out there for businesses." She emphasized the government's commitment to creating supportive conditions, citing her work in immigration to attract Chinese visitors to New Zealand.

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We do need to be empathetic and remind them of all the things that we’re doing as a Government to try and support them.

During the Rotorua event, when presented with concerns about declining business confidence and rising costs by the Rotorua Business Chamber's chief executive, Melanie Short, Luxon responded by calling her view "negative." He added that businesses not "retooling and radically disrupting your business, you ain’t doing the job."

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It’s a matter of time, how long can we hold on?

A transcript of the conversation revealed Luxon drew on his own business experience, mentioning a time in Chicago when he least wanted to speak with the government as a CEO. However, Luxon's LinkedIn profile indicates he was a senior figure at Unilever before becoming chief executive of Unilever Canada in Toronto, not a CEO in Chicago.

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