The Business Roundtable believes New Zealand is facing grave economic problems, many of them the result of policy errors in recent years. They are both of a short-term nature due to the international crisis and longer term due to the slump in productivity growth. In our view Treasury advice to the government since the election has understated the seriousness of the problems and we agree with the minister of finance that a greater sense of urgency is needed. We strongly support the government’s aspirations for radical improvements in New Zealand’s economic performance, which will require major changes in policy directions.