A review of transport discounts for the elderly using the
SuperGold card is shaping up to be an excuse to make cuts,
Labour's transport spokesman Darren Hughes said yesterday.
Free off-peak travel for elderly people under the SuperGold
card is set to exceed its annual $18 million budget and the
Government is looking at ways of reining it in, which may
impact on services.
A Transport Ministry/NZ Transport Agency discussion document
released today suggests changes, including reducing the rate
that providers are reimbursed; capping reimbursement
payments; changing what services are eligible and removing or
reducing payments for administration costs.
"After the first 12 months of operation it has become clear
that in its present form, the scheme is not financially
sustainable with the funding available," the document said.
Mr Hughes said the document signalled cuts to travel
subsidies for the elderly.
"In March 2009, (Prime Minister) John Key described it as 'a
successful programme...and we will be funding the increase'.
Mr Joyce also said at the time that the Government had
allocated $72 million for the scheme over four years...and
'at this stage we are not concerned it will exceed that'.
"Now that appears to have changed. A review that improves the
scheme is one thing, but the language used in the
announcement points to cuts," Mr Hughes said
About eight million trips were made under the scheme in the
first 12 months and growth in card holders was strong with an
additional 20,000 new eligible users a year expected to use
it. The scheme was introduced by the former Labour government
as part of the New Zealand First Party's support agreement.
Transport Minister Steven Joyce said the scheme, which
started in October 2008, would be retained but changes would
have to be made.
About 540,000 elderly people (aged 65 and up) have the cards
which entitle them to travel during off peak periods such as
9am-3pm on weekdays.
Officials would look at how "off peak" should be defined and
consider eligibility of certain high cost services --
including the Waiheke ferry and the train service between
Wellington and the Wairarapa.
"The transport concession of the SuperGold card has an annual
budget of $18 million across the country -- $2 million of
that is currently spent on the Waiheke ferry alone," Mr Joyce
said.
Operators were compensated for the loss of revenue from
SuperGold Card holders who previously paid but now did not.
Reducing the reimbursement rate by one percentage point to 74
percent a year would save $250,000 annually and a 4 point
reduction would save $1 million.
Introducing different reimbursement rates for different
regions or services was another possibility.
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