KEY POINTS:
Young doctors will be paid up to $10,000 a year in cash or as a student loan write-off to remain in the country in a new Government scheme to be announced today.
The finer points of the voluntary bonding scheme, aimed at graduate doctors, nurses, midwives, teachers and veterinarians, will be spelled out at the Beehive this morning.
The scheme aims to reward graduates who remain in New Zealand by writing off their student loan debt. It would focus on placing graduates in hard-to-staff areas.
Health Minister Tony Ryall told the Herald last night that the scheme would follow National pre-election policies, but would also offer cash incentives for those who do not need student loan write-offs.
"We have decided to widen the scope of the scheme to include students who do not use a student loan."
Mr Ryall confirmed that cash incentives would match the amount written off student loans. National promised it would wipe up to $10,000 a year off student loans for doctors who agreed to work in hard-to-staff areas.
It is understood the figure for midwives would be $3500 and less for nurses, based on average debt levels at graduation.
The participants will still have to make minimum repayments on their student loans.
Bonding would get teachers to work in low-decile schools and remote areas and encourage veterinarians to work in rural areas.
Mr Ryall said the ministry had worked to establish a specific definition of "hard-to-staff" areas, and that the scheme would target the most understaffed areas first.
The scheme would be open to doctors, nurses and midwives who had graduated since 2005. It would later be extended to other health workers. Nurses would be able to sign up to the scheme by February 27.
