Fears ratepayers will cop free-bus funding shortfall

Otago Regional Council member Louise Croot is concerned that a planned funding cap on the SuperGold Card free bus travel scheme could adversely affect ratepayers.

She spoke out at a recent council committee meeting about potential effects of the cap.

And at an earlier council meeting she also objected to any adverse change in the scheme's funding model, including any suggestion of population-based funding.

The free off-peak travel scheme, for people aged 65 or older, is a Ministry of Social Development-funded initiative.

The subsidy is distributed by the NZ Transport Agency (NZTA).

Mrs Croot said the scheme was a Crown initiative and regional council ratepayers should not be expected to contribute to it.

"I don't think they should be shifting costs on to ratepayers,'' she said in an interview.

The ORC was recently advised that a likely $1.3million funding shortfall was looming throughout the country, given Crown plans to cap reimbursement funding for regional councils participating in the scheme.

In a recent report, ORC director corporate services Nick Donnelly said NZTA had released a consultation document over its preferred bulk funding allocation model.

A study using this model indicated, based on current patronage predictions, a "small shortfall'' for Otago in the first financial year, starting on July 1.

But future losses could be greater, including through increased bus patronage by GoldCard users, he indicated.

john.gibb@odt.co.nz

Add a Comment

 

Advertisement