John MacDonald: Philanthropic funding for new medical school? Pfft

Let's start with the positives in the news that the Government is pressing ahead with a new medical school at Waikato University.  

120 new med students every year. You can’t argue with that.  

But that’s about it for me.   

I’m not going to criticise the Government for doing something to get more doctors, because we need them. Especially in rural and regional areas, which look to be the main focus of this new school.  

But I think it would have been way better for the Government to invest more in the existing medical schools at Otago University and Auckland University.  

Especially Otago, when you consider all the money that’s going into the new hospital down there.  

I see that Otago University is saying the same sort of thing. But I suppose with former Labour cabinet minister Grant Robertson running the place, it would say that.  

Auckland University seems to be a bit more diplomatic on it, but both universities have put up the same argument in the past: that, rather than starting something from scratch, it would be better to put the money into training more doctors at the medical schools already up-and-running.  

The main concern for me though is the finances. The Government is putting-in less money into the Waikato medical school than it said it would, relying instead on the university and its financial backers to make up the shortfall.  

Before the last election, National campaigned on a $380 million medical school, saying it would spend $280 million, and the university would chip in $100 million.  

But yesterday the Government announced it would be contributing just over $85 million, and the university would be putting in $150 million with help from its donors.  

Which has got the opposition parties asking questions too.  

Green Party tertiary education spokesperson Francisco Hernandez says Treasury has already raised concerns about Waikato University’s ability to contribute to the costs.  

He says: "The Government got advice that approving the Waikato medical school would raise the risk profile of Waikato University from medium to high.”  

 And, like me, he reckons the budget’s going to be blown.  

"The cost estimates have shifted so much, I wouldn't be surprised if there's scope creep down the line and Waikato Uni ends up having to come back to the Government with a begging bowl, because the cost ends-up being more than what they thought it would be." 

And that’s where I see this thing at risk of falling over – either falling over or needing more government money down the track.  

Because as soon as anyone starts using the “ph” word, I get suspicious. And the government’s using the “ph” word. Philanthropists. People with money to donate to causes they believe in. 

The cathedral in Christchurch – that was going to get truckloads of money from philanthropists, wasn’t it?  

Canterbury Museum – the philanthropists were going to be writing out cheques for that project too, weren't they?  

And, as someone with a bit of experience in universities and philanthropy, I can tell you that getting money out of people is way easier said than done.  

Although —not wanting to be a complete downer— I’ve always said that, post-covid especially, philanthropists are much more likely to put money into things that help people, as opposed to just building something for the sake of it.  

But raising money this way is a long haul. And anyone being asked to contribute will want to see a business case. They’ll want to see who else is on board. And that won’t happen overnight.  

And I bet you that all the high rollers that the university might approach will look at the Government’s reduced investment and ask how committed it really is.  

But here’s m

Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:12):
Let's start with the positives. They start with the positives
in this news that the government is pressing ahead with
a new medical school at waycott Or University. The positives
one hundred and twenty new med students every year. You
can't argue with that. But do you know what that's
about it? For me? I'm not going to criticize the
government for doing something, for at least doing something to

(00:36):
get more doctors, because lordie, we need them, especially in
rural and regional areas, which are looking like the main
focus areas of this new medical school. But I think
it would have been way better and way more straightforward
for the government to invest more in the existing medical

(00:57):
schools at a Targer university in Auckland University, especially a
Targo when you consider all the money that's going into
the new hospital down there, I see that a Targo
University is saying the same sort of thing. But then
I suppose Worth Grant Robertson running the place a Target
would say that Auckland University seems to be a bit

(01:19):
more diplomatic on it. Although both universities. They've put up
the same argument in the past, that argument being that
rather than starting something new from scratch, it would be
better to put the money into training more doctors at
than medical schools already up and running. Main concern for me, though,
The main one is the finances. The government's putting in

(01:42):
less money than it said it would pre election, and
it's going to rely instead on the university and its
financial backers to make up the shortfall. So I'll run
you through a couple of the numbers. Before the last
election national campaign on a three hundred and eighty million
dollar medical school. A new medical school at Wycuter University
three hundred and eighteen million it said it would spend

(02:05):
it being the government would spend two hundred and eighty
million and the university would chipen one hundred yesterday, though
fast forward to yesterday, things changed, didn't they. The government
announced it would be contributing just over eighty five million
dollars and the university would be putting in one hundred
and fifty with help from its donors, which has got

(02:27):
the opposition people or the parties asking questions so quite rightly.
The Greens tertiary education spokesperson Francisco Hernandez says that Treasury
has already raised concerns about Waykoto University's ability to contribute
to the costs. He says, quite the government god advice
that approving the waycott Or Medical School would raise the
risk profile of the university from medium to high, and

(02:51):
he reckons the budget's going to be bown as well.
Of course it will, he says, quite, the cost estimates
have shifted so much. I wouldn't be surprised if the
scope creep down the line and Wykatto University ends up
having to come back to the government with a begging bowl,
the cast ends up being more than what they thought
it would be. End of Quite, that's what the Greens

(03:12):
tertiary education spokesperson is saying. And that's where I see
this thing at risk of falling over, either falling over
or needing more government money down the track. Because as
soon as this is what's really got me, as soon
as anyone starts using the word, I get suspicious. And

(03:33):
the government's using the word the word I'm talking about
for the philanthropists, people with the money to donate to
causes that they believe in. The Cathedral here in christ Church,
and that was going to be built on the contributions
of philanthropists, wasn't it. The philanthropists Canterbury Museum. The philanthropists

(03:58):
are going to be writing out checks falling over themselves
for that project as well, weren't they. And as someone
this is me, someone with a bit of ex experience
in universities and they're philanthropists, I can tell you that
getting money out of people is way easier said than done,
especially when you're the government and you're not going to
be doing the doing and asking the asking. Although not

(04:22):
wanting to be a complete downer, don't laugh, I have
always said that post COVID, especially philanthropists are probably more
likely to put their money into things that help people
as opposed to projects that are just building something for
the sake of it, like cathedral. But I'll tell you this,
when I think raising money this way from philanthropists, going

(04:46):
down the philanthropy channel, it is a long haul. And
anyone who was asked to contribute to this medical school
will want to see a business case. They'll want to
see who else is on board, and that won't happened overnight.
And I bet you this, I bet you that all
the high rollers that the university might approach, We'll look

(05:07):
at the government's reduced investment and ask how committed it
really is. So you want me to put money, but
hold on. The government promises it's only putting this in now.
If the government really wanted this to happen, it wouldn't
have cut back on its financial commitment and the way
it has. But don't fear, don't fear sorry, is not
over for the government. Here's my prediction. It won't be

(05:30):
long before the university is knocking on the government's door saying, oh,
we need more money. The philanthropists aren't forthcoming, and at
that point we will all realize that investing more in
our existing medical schools would have been a way better option.

Speaker 1 (05:47):
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