Govt reviews travel subsidy

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 $18 million.

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

Officials are 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 "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."

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

In the first 12 months, 8 million trips were taken under the scheme which entitles over-65s to free off-peak travel.

Cutting the reimbursement rate by one percentage point from its current 75 per cent rate would save $250,000 a year. The document also asks whether the card should carry a photo ID to prevent fraud.

- © Fairfax NZ News