Those twin political headaches facing Luxon largely overshadowed confirmation from Willis that the Government had decided, for now, to retain the temporary support for families introduced to help with rising fuel prices.
While New Zealand experienced four weeks of prices below $3 a litre, Willis said recent volatility in the Middle East meant prices had risen and could remain elevated for weeks. She will return to Cabinet to discuss the supports if prices fall below $3 again.
On Friday, in response to comments about declining confidence and affordability issues, Luxon said that was a “negative view” and businesses needed to innovate.
He spoke of his own experience in business, including overseas in Chicago where “the last person I wanted to ever talk to as a CEO was the Government”.
According to Luxon’s LinkedIn profile, he was never a CEO in Chicago. The online resume shows he was a senior figure at Unilever, before moving to Toronto to become chief executive of Unilever Canada.
“I’m a business person. I’m building a kick-ass company that actually has commercially superior returns, great customer experience and awesome internal culture,” he said.
Returning to New Zealand, he found a “parent-child mentality”. Luxon said businesspeople here wondered “what the Government’s going to do”. He said, “who cares what the Government thinks or does? Our job is to be adult, adult, adult”.
Luxon said his job, as Prime Minister, was to “set the conditions up”, noting attempts to get inflation back into the targeted band and create growth.
Labour’s finance spokeswoman said the comments showed “how out of touch” Luxon is, while one business leader told the Herald Luxon’s comments were “patronising and condescending”, and businesses were upset.
Apologising on Monday afternoon, Luxon said he understood “many small business owners are doing it tough right now” and he admired the “enormous contribution” they made.
“They’re working long hours, they’re managing financial pressures, looking after their staff, and doing everything they can to grow their businesses.”
Luxon said he could have “expressed myself better” and that he never intended to “cause any offence”.
“That’s not what I intended to do. Clearly people felt that I did, and I just want to acknowledge that wasn’t my intention.”
He said he had received some comments from his caucus colleagues in “cursory terms”.
Willis wouldn’t say what her reaction to the remarks were, but emphasised National understood “there are many small businesses, who through no fault of their own, have had a really tough time”.
She said she had seen feedback online to the comments, but wouldn’t characterise it, instead saying the Prime Minister had “addressed that in his opening remarks”.
Luxon jumped in to again stress his apology.
“You’ve reported extensively over the weekend. I’ve seen the comments from others, and I just think I don’t want to cause offence. That’s why I’m saying I cop it, apologise for it, it’s a genuine apology. I am on the side of business. I spend a lot of time in businesses.”
It didn’t impress Labour’s campaign chair Kieran McAnulty, who spoke with media afterwards.
“He has managed to bring himself to say he is sorry if he caused offence,” said McAnulty.
“Everybody knows that’s what you say when you’re not really sorry. It is like the weakest form of apology. It’s like one level up from shrugging your shoulders and saying ‘whoopsie’. I don’t think the business community in Rotorua, indeed the business community across New Zealand will be convinced by that at all.”
The other issue dogging Luxon on Monday was his response to Peters saying Chinese-Kiwi Green MP Lawrence Xu-Nan should “go back to your own country”, after Xu-Nan interjected during a debate in the House.
Labour and the Greens have said Peters should be sacked for the comment, while a Chinese official lodged “solemn representations” with the Ministry of Foreign Affairs and Trade about “negative China-related remarks made by a certain politician in the New Zealand Parliament”.
Although Luxon has condemned the remark, which he has said was racist, the Prime Minister hasn’t taken any action against his Foreign Affairs Minister.
Luxon on Monday confirmed he had spoken to Peters about the comments but wouldn’t tell reporters what the conversation entailed. He said he told Peters he found the comments offensive.
“I find those comments unacceptable. I think our Chinese community have made New Zealand a much better place. Lawrence Xu-Nan deserves his right to speak in Parliament as anybody.”
Jamie Ensor is the NZ Herald’s chief political reporter, based in the press gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards.