The new school of rural medicine backed by National remains up in the air (file photo).

The prospect of a new medical school remains up in the air, with the Government yet to commit.

But a National MP fears the proposal is already dead in the water under the Labour-led Government.

In August last year, Bill English - then prime minister - said the Government would establish a new school of rural medicine by 2020 to address the nation's rural GP shortage.

TOM LEE/STUFF Hamilton MP David Bennett, left, said a medical school is unlikely now National isn't in Government and Bill English is no longer prime minister (file photo).

Choosing not to establish a new school would be a mistake, Hamilton East National MP David Bennett said.

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"I think it's a disaster, actually ...It would be a disaster for rural health.

CHRISTEL YARDLEY/ STUFF Hamilton Labour Party list MP Jamie Strange says we should be training doctors in New Zealand rather than importing them (file photo).

"[The Government] have got a budget that they are very constrained with at the moment - they've run out of money, effectively.

"They hadn't made the financial commitment pre-election and they don't have the money now."

Minister of Health David Clark was not available for comment but said in a statement that the Government is considering all options.

Clark's office would not supply a timeframe for the decision.

In October 2016, Waikato University and the Waikato District Health Board revealed a joint proposal to create the country's third med school to focus on addressing the needs of disadvantaged, rural and provincial communities.

Auckland and Otago med schools responded months later with plans to create a national school of rural health.

"Auckland and Otago had their chance," Bennett said. "They've been in charge of health professional training for many years, they haven't delivered the product of enough GPs in the rural community.

"National had committed to the project. It was just a matter of where we located it.

"Waikato would have been the forerunner in that process because they've done all the hard work."

NZ Rural General Practice Network chief executive Dalton Kelly said the GP shortage is quickly growing worse as an ageing population of GPs retires.

And in 10 years, it's going to spell trouble.

"We've got a really big gap coming forward. We aren't able to replace those [doctors] retiring.

"There's a big shortfall coming up … It'll be enormous."

Too many ideas had slowed a decision, Kelly said.

"[Both models] are worthy of consideration. We just need something to happen."

Waikato DHB interim chief executive Derek Wright understood the Government would revisit the proposals later this year.

"It's still on the cards," Wright said. "The National Government were keen, the Labour Government have said we will probably go to some sort of request for proposal at some point."

Hamilton-based Labour list MP Jamie Strange said while the decision had to be made by the Ministers of Health and Education, he supported the Waikato bid.

"We have to do something to solve the shortage of rural GPs."

Strange said he had been discussing the bid with Waikato DHB acting chairwoman Sally Webb and Waikato University Vice-Chancellor Neil Quigley.

"Personally, I like the Waikato University [proposal]. I think it's a good, strong model."

New Zealand imports 1100 doctors each year to fill the gaps in its health workforce, but not many stay long term.

"That is not the best for New Zealand. We should be training them up and retaining our own medical professionals."