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.
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.