Budget workforce plans not enough: CCI

The state's peak business body says workforce development initiatives unveiled in the federal budget will fall short of meeting the needs of Western Australian employers.

Treasurer Wayne Swan's budget last night introduced performance pay for teachers, funding for an extra 130,000 training places, greater mentoring for apprentices and flexible apprentice training models to help alleviate labour shortages.

WA's Chamber of Commerce and Industry welcomed the budget's focus on increasing the size and productivity of the local workforce, but raised concerns that the measures would not boost participation.

"While the government has boosted both the temporary and permanent migration schemes, sadly it falls well short of what's needed," CCI chief economist John Nicolaou said.

"With CCI research showing that WA will need almost an extra half a million workers over the next decade, business needs a substantial lift in migration, along with greater investment in the local population.

Mr Nicolaou said the chamber was disappointed the tough budget promised by the government didn't eventuate.

"The identified savings of $22 billion over four years is a drop in the ocean when compared against a total annual budget of $360 billion next year," he said. "This amounts to savings of just over one per cent.

"Instead the government's efforts to return the budget to surplus by 2012-13 are reliant on increased revenue from a mining-led economic resurgence.

"At the same time, the government is pushing ahead with its plans to impose a multi-billion dollar new tax on the very industry that will get its budget back into black."