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Home / Politics

National: We'll wipe doctors' loans

NZPA
18 Sep, 2008 04:00 PM3 mins to read

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KEY POINTS:

National would wipe up to $10,000 a year off student loans for doctors, and $3500 for nurses who agreed to work in hard-to-staff areas.

National is releasing its health policy in parts and yesterday's was on workforce.

Labour released National's health policy last week saying it was leaked
to them. National say a batch of policies were accidentally left in a public place.

Yesterday National leader John Key confirmed the party would set up voluntary bonding of health professionals to address shortages.

"We expect to be able to offer eligible candidates write-offs of up to $10,000 a year," he said. "The amounts would be payable at the end of three years, with the option to continue in the scheme for an additional two years after that."

Mr Key said 50-100 doctors and 200 nurses and midwives would qualify for the scheme a year. He said the annual debt write-off for nurses would be around $3500 based on average debt levels at graduation.

The scheme was costed at about $3 million in its first year, increasing to $9 million in the third year.

"We want more of our doctors, nurses and midwives staying in New Zealand and working in areas that are hard to staff. This programme will incentivise them to do so, and relieve some of the staffing pressure in those areas."

The first three years of annual write-offs would be made at the end of the full three years. Remaining write-offs would be annual.

The scheme would allow for training and maternity leave; would be extended to other health professionals in time; would operate alongside a graduate's compulsory minimum loan repayments; and would be open to those who had graduated since 2005.

Tertiary Education Minister Pete Hodgson said the Government already provided incentives for doctors to stay in New Zealand and National's policy was redundant.

"We have in place a range of bonded scholarships," he said. "In 2009 more than 2000 bonded academic scholarships will be available to students. Those who receive them are bonded to remain in New Zealand for up to four years after graduation."

Mr Hodgson said some district health boards paid junior doctors bonuses which were higher than those paid to urban doctors.

The Auckland University Students' Association (AUSA) said National's policy was "a promising step in the right direction" but the best way to help would be to stop the debt accumulating in the first place.

"Given that many can't get a student allowance because of parental means testing up to 24, and are thus forced to borrow to live, it's no wonder they graduate with appallingly high debt and shun lower paid but valued health fields," said AUSA president David Do.

- NZPA

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