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Transport Minister Steven Joyce is backing away from changes to entitlements to free public transport for SuperGold Card holders – a day after flagging cuts to the scheme.

Joyce sparked protests from the elderly and Opposition parties when he said changes to the scheme were needed because it was on track to exceed its budget.

Labour accused the Government of breaking an election promise to keep the scheme the same.

More than 500,000 New Zealanders aged over 65 hold the cards, which entitle them to a range of discounts on goods and services, as well as free off-peak travel on urban bus and rail services and some ferry services.

Off-peak means between 9am and 3pm Monday to Friday and after 6.30pm, plus all day on weekends and public holidays.

The entitlements cost taxpayers about $18 million a year, but transport officials have warned the Government that the budget is set to blow out because of increasing patronage.

Joyce said on Thursday that officials were considering how "off-peak" should be defined and the level of reimbursement transport operators received for providing the free travel.

But he said yesterday that suggestions the Government planned to cut SuperGold Card public transport services was "silly political scaremongering".

"We have made it clear all along that the Government is totally committed to the SuperGold Card, including the transport concession as it stands," Joyce said. Joyce said the areas the Government was looking at were reducing the subsidy to operators and reducing the administration costs of the scheme.

A spokeswoman for Joyce said he was "clarifying" his earlier remarks because they had been misinterpreted.

Labour transport spokesman Darren Hughes said Joyce appeared to have made a U-turn.

"One day on, a rattled Mr Joyce now says cuts were never his intention and that he only wants to reduce the payments made to providers of public transport and not cut the entitlements of elderly," Hughes said.

Maori Party co-leader Tariana Turia said she welcomed the Government's assurance it would not cut services.

- © Fairfax NZ News