The government has backed away from reducing SuperGold card travel entitlements for the elderly but is reducing the subsidy that providers get.Transport Minister Steven Joyce said an additional $9 million would be funded to ensure the scheme's viability.I
The government has backed away from reducing SuperGold card travel entitlements for the elderly but is reducing the subsidy that providers get.
Transport Minister Steven Joyce said an additional $9 million would be funded to ensure the scheme's viability.
In March the government announced it was reviewing the free off-peak transport scheme for pensioners that is provided by the card because usage was increasing and budgets were likely to be exceeded.
The Waiheke ferry service was highlighted by Mr Joyce as a high-cost service. At the time he said questions needed to be asked about whether taxpayers should be funding the ferries' operators to the tune of $2 million for services they would be largely providing anyway.
However, that has also been retained.
"All those involved in the review have made it clear they want the scheme to be retained. My desired outcome is that operators, councils and ultimately SuperGold card holders all have certainty for the future," Mr Joyce said.
"The government will put an extra $9 million (over two years) into the scheme over the next two years to ensure it can keep up with growing demand -- taking total government funding for the scheme to $45m over the next two years."
Mr Joyce said transport operator subsidies would be set at 65% of the average adult fare – down from 75%. Regional councils would have to absorb administration costs and the NZ Transport Agency's budget for administering the scheme would be significantly reduced. Also a moratorium would be placed on major new services entering the scheme for the next two financial years.
Mr Joyce said providers were getting more business because of the scheme.
Where operators could prove that would not be able to continue to offer free services because the subsidy was not enough, they could apply for an increase.
"The government has made it clear we don't expect operators to profit from the scheme but neither do we expect them to be out of pocket."
