A $230 million medical school will be established at the University of Waikato, the Government has announced.

Health Minister Simeon Brown and Universities Minister Shane Reti announced the new school on Monday, saying Cabinet had agreed to the business case.

“Cabinet has approved the business case for the new school, which will have a strong focus on primary care and rural health,” Brown said.

“With $82.85 million in Government funding and over $150 million from the University, supported by philanthropic investment, this is a substantial commitment to education and regional development in the Waikato.

“Today’s decision will enable the University of Waikato to begin construction on new teaching facilities later this year and start planning for clinical placements, while giving more students the opportunity to study medicine in New Zealand,” Brown said.

Brown said that starting in 2028 the school would add 120 medical training places each year.

“This is on top of the 100 additional medical training places that are being added over the term of this Government across the University of Auckland and University of Otago,” Brown said.

The medical school was controversial on the election campaign. Labour said it would not open a new medical school, but had a policy of adding places to New Zealand’s existing medical schools.

Labour said it would train an extra 335 doctors every year from 2027.

Health Minister Simeon Brown and Universities Minister Shane Reti announced the new school on Monday, saying Cabinet had agreed to the business case.

“Cabinet has approved the business case for the new school, which will have a strong focus on primary care and rural health,” Brown said.

“With $82.85 million in Government funding and over $150 million from the University, supported by philanthropic investment, this is a substantial commitment to education and regional development in the Waikato.

“Today’s decision will enable the University of Waikato to begin construction on new teaching facilities later this year and start planning for clinical placements, while giving more students the opportunity to study medicine in New Zealand,” Brown said.

Brown said from 2028, the school would add 120 medical training places each year.

“This is on top of the 100 additional medical training places that are being added over the term of this Government across the University of Auckland and University of Otago,” Brown said.

The medical school was controversial in the election campaign. Labour said it would not open a new medical school, but had a policy of adding places to NZ’s existing medical schools.

Labour said it would train an extra 335 doctors every year from 2027 by expanding capacity at the existing two schools.

At the 2023 election, the National Party campaigned on building the medical school.

However the post-election coalition agreement with Act made any decision to establish the school subject to a business case. Act leader David Seymour raised concerns with some of the thinking behind the early policy work on the school, putting the project in doubt.

He put out a press release taking credit for forcing the University to shoulder a greater proportion of the cost of the new school.

“Initial estimates forecast that the taxpayer would need to stump up $280 million. Today’s announcement confirms they will only need to invest $82.5 million.

“This is down to Waikato University agreeing to contribute a higher proportion of the medical school’s costs. ACT’s rigorous questioning helped ensure a more efficient investment meaning Kiwis get better outcomes for less,” Seymour said.