Bonding scheme for health and education

The Government today announced voluntary bonding schemes to encourage more health professionals, teachers and veterinarians to work in hard to staff areas.

Under the scheme graduates would get student cash incentives to work in understaffed areas for a three to five year period starting from 2009, with the first bulk payment in 2011 followed by two further annual payments

Details included:

* Health professionals:

In the first year 100 doctors and 250 midwives and nurses were expected to be voluntarily bonded to work in areas with critical workforce shortages. Similar numbers were expected to be added yearly.

Doctors would get $10,000 a year (after tax); midwives $3500 and nurses $2833.

The scheme would cost $7 million in the 2011-12 year growing to $10m per annum after that.

* Teachers:

Teachers would get before tax payments of $3500 a year for five years on top of their salary to work in schools and subjects with shortages.

Payment for the first three years would be paid after the third year and annually for the following two years.

The scheme is expected to cost $19m over three years.

* Veterinarians:

Veterinary graduates who work in certain rural areas will qualify for a taxable payment of $11,000 a year.

The first payment would be made after three years and then annually.

The scheme is expected to cost $1.32 million in 2012 rising to $1.76 million in 2014.

The health, agriculture and education ministers have been working with their departments on how to implement the scheme designed to keep young graduates in the country and working in areas where they are needed after completing their studies.

Bonding would help get teachers to work in low decile schools and remote areas and encourage veterinarians to work in rural areas.

- NZPA