UPDATED 7.02PM Questions are being raised about why foreign investors are being asked to boost our education system, rather than the Government.

A $2.7 million sale of a 19 hectare block of sensitive land near Queenstown went ahead only after the buyers, Glenorchy Homestead, agreed to donate $100,000 to Wakatipu High School.

LISTEN ABOVE: Wakatipu High School Foundation chairman Mark Taylor talks to Larry Williams

John Key said that's fine by him.

"Since 2009 there's been 16 cases where someone going through the OIO process has undertaken some kind of community type project. It's no bad thing that they can do that. It's a contribution to the community they're effectively investing in."

Foundation chairman Mark Taylor said it wasn't a hard decision to accept the offer, as companies usually donate toward conservation projects.

"Education of New Zealanders is just as worthy as environmental projects so we thought it was a good idea."

Mr Taylor said the money will make a big difference, as although they're a decile 10 school, many families are faced with high property prices and low wages.

The money went towards iPads and laptops, with the school saying 30 per cent of their students needed help to get the equipment.

SEE ALSO: Chris Hipkins: 'Government, not foreign investors, should be paying for school iPads'

Labour's education spokesperson Chris Hipkins said it shows the pressure families are being put under.

"Decile 10 schools, which are based in the wealthiest communities, when even they are saying that it's a struggle to find the funding, then we should really take note because if they're struggling imagine what schools in the poorer communities are finding."

Mr Hipkins said the Government was warned in 2014 that it needed to start a fund for modern learning technology.

"Teachers need to be trained on how to use them as well, so that kids are getting quality learning with them and they're not just being used as toys, but yes increasing technology is essential to a quality public education."

In a letter, Wakatipu High School said the donated money will assist parents with increasing costs for technology.

The school said it's moving towards a bring-your-own-device policy and knows families may need financial assistance.