Extra GP training places, on top of extra places at medical schools are the first requirements to address health workforce issues, says Karen Thomas, CEO of the College of GPs.

"Government has listened to sector priorities," Ms Thomas said, welcoming today's budget announcements.

In addition to the 200 extra places at medical schools over five years, the budget boosted GP training with  25 extra GP training places in 2009/2010, increasing to 50 extra places per year - $17.5 million over four years.

"There is also $46 million to DHBs to devolve some hospital services to primary care," Ms Thomas said, "which will lead to significant overall savings, not only in cash terms but particularly in patient waiting times."

The College expects this to include giving GP specialists the ability to order tests that were previously only available within the hospital system.

International evidence from experts like Professor Barbara Starfield, from Johns Hopkins University in Baltimore has found direct correlation between the numbers of doctors in primary care and improving health in the community.

"The most practical approach to fix the healthcare system is to organise services around strengthened primary care and ensure everybody access," Professor Starfield told a College symposium earlier this year.