The Government has scrapped plans to establish a School of Rural Medicine.
The previous Government, before last year's election, promised to create the school in a bid to attract more doctors to the regions.
But Health Minister David Clark this morning announced he had scrapped plans for the school.
National had received bids for the school, but that process would not now proceed, Clark said in a statement.
"No money had been allocated for the school, which would have cost up to a quarter of a billion dollars to set-up and operate," he said.