'Half-hearted': Tasmanian business groups react to Federal budget

Despite claims that Tasmania has been "left off the map" by state politicians, some organisations have voiced their support for the policies.

To find out who stands to benefit from the budget, The Examiner looked at three Tasmanian business groups that made public statements this week.

Let's start with the positive. The Civil Contractors Federation of Tasmania (CCFTas) described Labor's infrastructure commitment to the state as "pleasing".

Chief executive officer Andrew Winch said the construction of the Bridgewater Bridge would soon peak and gradually tail off, meaning it was important to have a strong pipeline of civil work to follow.

"The $80 million commitment to the Lyell Highway upgrade is particularly welcome, as it means that coupled with the state government's recently announced $20 million contribution, that important new project will now be able to proceed," he said.

"With the current pipeline of work stalled, this announcement is reassuring for industry."

Mr Winch added that workforce development would get a much-needed boost through a $90.6 million investment into construction and housing.

This is expected to create 15,000 fee-free TAFE places and 5000 places for pre-apprenticeships across the country.

Non-profit organisation Master Builders Tasmania offered a more mixed view on the budget.

Chief executive officer David Clerk said while the Federal government's continued focus on building housing was welcome, it couldn't be done without a larger workforce.

"Under the previously announced National Housing Accord, Tasmania could be expected to build over 25,000 new homes over five years. Without a bigger workforce, we will fall well short of this target," he said.

"According to our forecasts, Tasmania could be up to 10,000 dwellings short of this target."

Mr Clerk said Master Builders Tasmania also expected a 20 per cent drop in the construction of new homes over the next financial year due to affordability issues and workforce shortages.

"It's vital to increase the building and construction workforce from 26,000 workers currently to around 40,000 so Tasmania has the capacity to build the houses we need as well as the roads, commercial facilities and houses," he said.

Moving on from construction to business, the Tasmanian Chamber of Commerce and Industry (TCCI) criticised the budget for its "half-hearted support".

Chief executive officer Michael Bailey said a number of issues were impacting the commercial field.

"Businesses tell us the main issues are cost of doing business, the cost of living, skills shortages, insurance costs, interest rates and red tape," he said.

"While the budget does offer some cost-of-living relief, it's overlooked most of the other key issues affecting business."

Mr Bailey said the TCCI had hoped that the Made in Australia initiative would have provided "something tangible for Tasmanian businesses".

"While there are some good initiatives in this budget, the business community would like to see the Federal government make more of an effort to support the engine room of the economy," he said.