Waikato University is asking for millions of dollars in ratepayer subsidies for its new medical school, but one Hamilton councillor says it is a central government issue and ratepayers should not foot the bill.
The university wants Hamilton Council to waive more than $5 million in development contributions, which help pay for infrastructure. It has also asked the council to pitch in $250,000 a year for five years.
In making his pitch, Waikato University vice chancellor Neil Quigley revealed the government's funding only covered about 28% of the project's cost.
From 2028, the Waikato medical school is expected to train an additional 120 doctors a year, with students doing clinical placements in regional areas.
But Hamilton councillor Sue Moroney told RNZ it was a matter for central government.
Long-planned graduate medical school for Hamilton is hoped to relieve severe doctor shortages in some areas. (Source: 1News)
"There is already enough that central government is putting on local government to pay for that we have no say over, and the ratepayers end up paying those things. This medical school is one decision we do have control over as a council and from me it's a hard 'no'.
"We can't afford it because we are actually trying to do all the things that the fastest growing city in the country needs to do, with a ratepayer cap that is coming from central government as well. So we've already got enough on our plate, we've got a lot of expenditure that is our responsibility, let alone picking up responsibility that really does belong to central government."
She said the council had a good relationship with the university and was proud of it, but the entire country would benefit from the extra doctors.
"Yes, there will be benefits to Hamilton, but the decision and the responsibility is definitely with central government, it's not one that ratepayers or their representatives have any role in making a decision about."
Moroney said ratepayers had asked her why the council needed to give extra funds to the university when it was in a good financial position, at a time when the council was struggling to keep costs down.
The millions in development contributions the university was asking the council to waive were needed in the local community, she said.
"We have forecasted development contributions for the forecasted growth in our city and every bit of developer contribution that we do not get – including those ones being caused by fast track projects that are right on our boundaries – means that that's an extra burden for the existing ratepayers and existing ratepayers have had enough of funding those sorts of ventures."
Otago University wrote to the Government about potential issues with a new school in Waikato. (Source: 1News)
The request from the university to provide financial assistance will now be considered as part of the council's 2027-2037 long-term plan.
Hamiltonians will have the opportunity to have their say early next year before any decisions are made.
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