The Australia New Zealand Business Council is calling for decisive policy shifts from the Government to bring this country into economic alignment with Australia.
Under a coalition agreement, New Zealand has sought to achieve such equality with Australia.
In a closed door speech on Thursday, Reserve Bank Governor Alan Bollard appeared to undermine that goal, saying that rather than try to match Australian incomes, New Zealand should take advantage of Australian growth.
Council member Kerry McDonald says the comments are very much a warning signal that the Government needs to make decisive policy shifts.
Mr McDonald says although there is no one measure to change the situation, work to close the gap with Australia must continue.