Budget bust hits free rides for elderly

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The Government is looking at cutting back on free off-peak travel for the elderly as the cost of the scheme mounts.

Transport Minister Steven Joyce said the travel subsidy under the SuperGold card was set to exceed its $18 million-a-year budget, with the Wairarapa to Wellington train service and the Waiheke Island ferry singled out.

"The highest priority of the review process is to consider how to keep the scheme within the available budget of $18 million a year, while continuing to provide improved mobility for older people," Mr Joyce said.

The Waiheke ferry cost $2 million and the operator was paid $13 a ticket.

Officials are also considering the level of reimbursement to operators and councils, and what services are eligible.

The review is also looking at how "off peak" is defined.

A discussion document notes that after the first 12 months "it has become clear that in its present form, the scheme is not financially sustainable with the funding available".

But the card's architect, New Zealand First leader Winston Peters, said yesterday the changes could hit the elderly hard and would be a breach of National's assurances in 2008 that the elderly would not lose what they had.

"These people had their lives opened up where they were previously trapped by cost into staying at home and remaining at home. They are not wealthy – they are extremely modestly incomed in the main."

Mr Peters said the scheme, set up under the previous Labour government, had not had a limit of $18m.

In the first 12 months of the scheme, which entitles over-65s to free off-peak travel, eight million trips were taken.

Cutting the reimbursement rate to operators and councils by one percentage point from its 75 per cent rate would save $250,000 a year. Different reimbursement rates for regions or services, or between urban and rural areas, are also in the mix. The document also asks whether the card should carry a photograph to prevent fraud.

Labour transport spokesman Darren Hughes said the review was another broken promise by Prime Minister John Key.

"In March 2009, 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."

Wairarapa Grey Power president George Groombridge said members would fight any changes to the SuperGold card.

"I can assure you that the SuperGold card is essential.

"I'm absolutely appalled that they are now considering restructuring it. That is not acceptable, that's not acceptable at all."

People used the Wairarapa to Wellington service to visit relatives at Wellington Hospital. Without the card they would be unable to make the trip.

"Our Wairarapa people do not abuse it. The whole thing smacks of savings for savings' sake."

Wellington Central Grey Power president Duncan McDonald said off-peak rules meant the card could really only be used on the Wairarapa train service at weekends.

"I wouldn't have thought it would be of great significance to warrant the action."

Putting It On The Card

In its first year the scheme cost $17.55 million for SuperGold card trip payments and $800,000 for administration. The average cost of a trip is about $2.38. Each cardholder makes an average 15 return trips each a year. There were 540,000 cardholders last October. Another 20,000 join each year.Card changes would breach promise says Peters