Rotorua business leaders have accepted an apology from the Prime Minister over remarks that small firms had a "parent-child mentality", although they say the comments stung a room full of owners who felt they were already doing their best.
Luxon told the audience at a Rotorua Business Chamber event on Friday that some businesses had a "parent-child mentality" and too often looked to the government for help.
He apologised at Monday's post-Cabinet conference, saying he was sorry his comments "did not properly acknowledge the challenges that many small business owners are facing".
Rotorua Business Chamber president Paul Ingram told Breakfast the chamber welcomed the apology and trusted there had been real reflection behind it.
"We welcome the apology from the Prime Minister following his comments last week, and we do trust that there's some genuine reflection behind that, and perhaps an enhanced understanding or awareness of what's real for small businesses at the moment," Ingram said.
He said the room had been attentive but some of the messaging did not land well, particularly the comparison to a parent-child relationship.
Rotorua Business Chamber president Paul Ingram told Breakfast the "parent-child" comparison didn't land in a room of resilient owners. (Source: Breakfast)
"The room was full of businesses that have been very resilient, very agile. This has been a pretty tough six years. We've been through pandemics, cost of living crises, fuel crises, all sorts of things," Ingram said.
He said many of those businesses had already adopted AI and new technologies and were constantly reinventing themselves.
Sitting close to the stage, Ingram said he could hear the mood in the room shift as Luxon spoke.
"I could hear a few groans and comments from behind me," he said. "I don't think he meant necessarily to lecture it, but that's really how it landed with us. It's a bit tough when when you're already doing the very best you can."
Ingram said businesses in the region wanted stability and steady economic growth, along with investment in technology and productivity.
"We're looking for steady strategic economic growth led with investment and supported investment in technology and productivity. We've got some fantastic opportunities here in Rotorua," he said.
Asked whether Luxon may have lost small business votes over the comments, Ingram said he did not know.
"We are used to being spoken to pretty directly. He's come out. He's apologised for his comments. I think really business people are going to get on with the job," he said.
Labour leader Chris Hipkins said Luxon's apology was "out of touch".
"He instead chose to be condescending and I think his apology looks somewhat insincere given that he's made these comments repeatedly over the past three years, so they do reflect what he actually thinks."
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