The opposition's perplexed as to why the Government's decided to privatise part of the country's mental health service.

LISTEN ABOVE: Green Party socail development spokesperson Jan Logie speaks to Rachel Smalley

Its announced its first social bond programme, which will see Australian company APM Workcare work to meet a number of government-set targets.

MORE: Social bond pilot announced to get health beneficiaries into work

The opposition's perplexed as to why the Government's decided to privatise part of the country's mental health service.

Its announced its first social bond programme, which will see Australian company APM Workcare work to meet a number of government-set targets.

APM Workcare has committed to getting 1700 people back into work, and if the programme's successful it'll get a return, and have its initial funding reimbursed.

Labour deputy leader and health spokesperson Annette King said this undermines the work our local, severely under-funded mental health services, are doing.

"I would rather see all the money go into providing the wrap-around services that many of these organisations have been are trying to provide. [They're] pushing water up hill."

Ms King is questioning the decision to put vulnerable New Zealanders in the hands of a company that's only been here a short time.

"We have got organisations that are well connected in their community who know people who have been wanting to do far more than they've been able to because they have not received the funding."

She said trusting a private company to deliver mental health outcomes is mad.

Mental Health Foundation Chief Executive Shaun Robinson worries providers could target easy cases simply to meet targets and make a profit.

"This should not be about saving money. This should be about getting an effective result, to improve the support for people who are living with mental distress."

The Greens say the pilot is allowing foreign companies to profit off mentally ill New Zealanders.

Greens' social development spokesperson Jan Logie said the new contract will suck resources away from where they're actually needed.

She said this provides nothing our funding-deprived local mental health services aren't providing already.

Mr Robinson said mental health services have been working towards similar goals for decades.

He said providers will face the age-old challenge of dispelling negative stigmas around mental health in the workforce.

"Just the creation of a social bond investment system will not magically overcome those barriers."

APM Workcare has committed to getting 1700 people back into work, and if the programme's successful it'll get a return, and have its initial funding reimbursed.

Labour deputy leader and health spokesperson Annette King said this undermines the work our local, severely under-funded mental health services, are doing.

"I would rather see all the money go into providing the wrap-around services that many of these organisations have been are trying to provide. [They're] pushing water up hill."

Ms King is questioning the decision to put vulnerable New Zealanders in the hands of a company that's only been here a short time.

"We have got organisations that are well connected in their community who know people who have been wanting to do far more than they've been able to because they have not received the funding."

She said trusting a private company to deliver mental health outcomes is mad.

Mr Robinson worries providers could target easy cases simply to meet targets and make a profit.

"This should not be about saving money. This should be about getting an effective result, to improve the support for people who are living with mental distress."

The Greens say the pilot is allowing foreign companies to profit off mentally ill New Zealanders.

Greens' social development spokesperson Jan Logie said the new contract will suck resources away from where they're actually needed.

She said this provides nothing our funding-deprived local mental health services aren't providing already.

Mr Robinson said mental health services have been working towards similar goals for decades.

He said providers will face the age-old challenge of dispelling negative stigmas around mental health in the workforce.

"Just the creation of a social bond investment system will not magically overcome those barriers."