A briefing paper from Treasury, released under the Official Information Act, assessed the establishment of a third medical school late last year.
‘‘Waikato Medical School is included on the Treasury Investment Management System as high-profile, high-risk investment,’’ the report said.
In July, the government approved $83million for the new University of Waikato medical school, which is set to launch a graduate-entry programme with 120 places by 2028, focusing on regional and rural health.
The total establishment cost is estimated to be $234.7m, with significant contributions from the university.
It has faced opposition from the two existing medical schools at the Universities of Otago and Auckland, which have argued they could train more doctors within existing infrastructure.
Green MP Francisco Hernandez said the high risk rating did not surprise him.
‘‘Our repeated predictions that the Waikato Medical School will cost more and be a more risky investment appear to be coming true.
‘‘The fact that they're having to spend additional money on targeted reviews on an investment that is categorised as high risk shows that it would have been more prudent to invest in boosting capacity at Auckland and Otago.
‘‘Sadly, this behaviour has been all too typical of a government that has repeatedly ignored advice, to instead pick politically-connected winners.’’
Asked about the ‘‘high risk’’ rating for the new medical school, a Treasury spokesman said such rankings were useful for the government.
‘‘The primary goal is to provide ministers and Cabinet with greater visibility and confidence that these major projects will be developed and delivered effectively — on time, within scope and on budget.
‘‘This framework applies an investor lens, where the government, as the investor, takes a more active role in stewarding public resources and ensuring value for money.’’
The spokesman said scrutiny was essential for large-scale projects.
‘‘A clear, co-ordinated road map for assurance activities and approvals is developed. This creates a single point of accountability and a more streamlined pathway to successful delivery.’’
The spokesman said projects showing early warning signs received enhanced oversight and support to help the agency manage emerging risks, while projects with more substantial issues might require direct ministerial attention and decisive action to bring them back on track.
‘‘The project's large scale represents a significant financial commitment from the Crown. Any failure would have major financial consequences.’’
Other high-profile, high-risk projects include the new Dunedin hospital, the redevelopment of Christchurch Men’s Prison and the National Schools Redevelopment Programme.
Health Minister Simeon Brown said the decision to progress the Waikato medical school followed a rigorous business case, including a cost-benefit analysis.
‘‘We are focused on long-term solutions to grow our health workforce and investing in innovative training and education models that will strengthen healthcare delivery for generations to come, especially in the areas that need it most.”
