Govt moves to reassure pensioners over free transport

Plans to stem the rise in the cost of funding free off-peak travel for pensioners under the SuperGold card scheme will affect transport operators, but Transport Minister Steven Joyce says the elderly will not lose out.

The Government proposes to reduce the subsidy provided to public transport providers from 75 percent to 65 percent of adult, off-peak fares to address rising costs over and above what was budgeted when the scheme was introduced under Labour.

Mr Joyce said officials were reviewing of the costs of the scheme "to ensure value for money for the taxpayers who fund it while maintaining all services as they are today".

He said a letter had been sent to all regional councils and the Auckland Regional Transport Authority setting out proposed changes.

"The next step is for councils to discuss the changes with affected public transport operators in their region. Officials will be working with each party to finalise agreements in the coming weeks," he said.

Mr Joyce said any change to the reimbursement rate would include a hardship clause for any operators for whom a lower rate would mean they would not be fairly compensated for services provided under the scheme. In such cases the reimbursement rate would not change.

Grey Power said today members were concerned about losing entitlements as free transport had become a vital service for many elderly people with mobility problems.

Labour Party transport spokesperson Darren Hughes questioned whether National could be trusted to keep the scheme going and Grey Power needed to keep the pressure on the party over the issue.

However, Mr Joyce said while adjustments were needed, the core purpose of the scheme would remain.

"The Government is 100 percent committed to providing the free off-peak public transport services in the SuperGold card scheme as they currently stand," he said.