Thursday, 30 November 2023
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDRIVEN Car GuideThe CountryPhoto SalesiHeart RadioRestaurant Hub
Voyager 2023 media awards
Subscribe

Advertisement

Advertise with NZME.
Home / New Zealand / Politics

Government announces plans for social bonds for mental health services

Isaac Davison
By
Isaac Davison
31 May, 2015 11:41 PM3 mins to read
Saveshare

Share this article

facebookcopy linktwitterlinkedinredditemail
Health Minister Jonathan Coleman announced plans for NZ's first social bond, which will focus on the mental health sector. Photo / NZPA

Health Minister Jonathan Coleman announced plans for NZ's first social bond, which will focus on the mental health sector. Photo / NZPA

Private investors will soon be given the opportunity to invest in mental health services, Government confirmed this morning.

Finance Minister Bill English and Health Minister Jonathan Coleman have announced plans for New Zealand's first social bond, which will focus on the mental health sector.

The Labour Party described the new policy as an untested experiment which used New Zealand's most vulnerable people as "guinea pigs".

Social bonds allow Government to contract out services and funding to non-government or private organisations, with agreed targets and timeframes.

Advertisement

Advertise with NZME.

If the targets are met, Government pays back the investors, and also pays a return on their investment. The return depended on the level of results, up to an agreed maximum.

"The Government is focused on achieving better results for individuals and families in highest need," Finance Minister Bill English said in a statement.

"Where we succeed, there are opportunities to help people fulfil their potential, a chance to break inter-generational cycles of dependency and, in the long term, potential savings for taxpayers.

"So social bonds are a consistent fit with our wider social investment approach which aims to better understand both the drivers and risks of social dysfunction and where we can have the greatest impact in improving people's lives."

Advertisement

Advertise with NZME.

The National-led Government gave the green light to a pilot scheme in September 2013, and has now confirmed the first four social bond contracts.

Nearly $29 million has been put aside in the Budget to expand on the pilot, which provided employment services to people with mental health conditions.

Dr Coleman said social bonds were an "innovative" way for the Government to contract social outcomes.

Labour's Annette King said the policy went against official advice and was a "disaster in the making".

Related articles

New Zealand|Crime

Victim meets killer at supermarket

22 May 05:00 PM
New Zealand

Better protection needed for victims

25 May 10:31 PM
New Zealand

Kiwis struggle with accepting mental illness

26 May 03:40 AM
New Zealand|Crime

Man unfit for trial could still face courts

28 May 11:00 AM

She said not only was there a lack of evidence from overseas trials that social bonds delivered on outcomes, but none of the international pilots provided the expected return on investment.

Mrs King said it was an experiment that had been instigated behind closed doors. It also went against advice provided to the Department of Internal Affairs, which warned that New Zealand should not "engage in trials or implementation of a social impact bond".

Mrs King said the risks of the policy were huge, because in order to meet targets providers were likely to focus on "easier-to-help" clients and not difficult and expensive ones.

"When it goes wrong it will be the taxpayer once again picking up the tab."

Saveshare

Share this article

facebookcopy linktwitterlinkedinredditemail

Advertisement

Advertise with NZME.

Latest from New Zealand

New Zealand

Two motorists caught more than three times the legal limit

30 Nov 04:43 AM
New Zealand

Festive parades in Tararua and Napier lure Santa, firemen - and Elvis

30 Nov 04:30 AM
New ZealandUpdated

Have you seen Kristen? Police, family fear for missing woman

30 Nov 04:20 AM
New Zealand

Tests reveal no sign of asbestos at site of Māngere Bridge fire

30 Nov 04:15 AM

Top toys of 2023 for kids & ‘kidults’

sponsored

Advertisement

Advertise with NZME.

Latest from New Zealand

Two motorists caught more than three times the legal limit

Two motorists caught more than three times the legal limit

30 Nov 04:43 AM

'Incredibly disappointing': Operation snares eight drivers over the limit.

Festive parades in Tararua and Napier lure Santa, firemen - and Elvis

Festive parades in Tararua and Napier lure Santa, firemen - and Elvis

30 Nov 04:30 AM
Have you seen Kristen? Police, family fear for missing woman

Have you seen Kristen? Police, family fear for missing woman

30 Nov 04:20 AM
Tests reveal no sign of asbestos at site of Māngere Bridge fire

Tests reveal no sign of asbestos at site of Māngere Bridge fire

30 Nov 04:15 AM
Toy trends for Christmas
sponsored

Toy trends for Christmas

About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2023 NZME Publishing Limited
TOP