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SuperGold cards - Source: ONE News -
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Winston Peters' SuperGold transport card could be facing cuts in the near future.
Transport Minister Steven Joyce says changes are needed to the free off-peak public transport component of the SuperGold Card as it is about to exceed its $18 million budget.
A review is underway to look at how to keep the scheme within its yearly limit.
"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," Joyce says.
The review will look at the definition of off-peak, reimbursement that operators and councils receive, and the eligibility of high cost services such as the Waiheke Ferry and train service between Wellington and Wairarapa.
"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," a discussion document says.
"To assure the scheme's future sustainability, changes will need to be made to reduce costs. The aim of the review process is to develop recommendations for changing the scheme in a way that is fair to all while delivering enough cost savings to make it sustainable for the next few years."
Joyce says currently $2 million of the annual budget is being spent on the Waiheke ferry alone.
About 8 million trips were made under the scheme in the first 12 months and growth in card holders is 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 says the scheme, which started in October 2008, will be retained but changes will 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, for example 9am-3pm on weekdays.
"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 says.
Officials will 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," Joyce says.
Operators are compensated for the loss of revenue from SuperGold Card holders who previously paid but now do not.
"An increase in SuperGold Card trips in the years after the introduction of the scheme can result in operators being overcompensated for lost revenue - as these additional trips are not replacing paid trips and are at marginal costs."
Reducing the reimbursement rate by one percentage point to 74% 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 is another possibility.
"New Zealand could introduce different reimbursement rates for metro, urban and rural areas," Joyce says.
The document also looks at reducing administration costs which councils are able to claim. Councils claimed $340,000 in the first year and the NZTA took $475,000. Now there are no longer set up costs to meet, the document raises the possibility of removing or reducing admin payments.
The document also seeks views on what the off-peak period should be; and whether the card should have a photo ID to prevent fraud.
What do you think of the possible cuts to the SuperGold
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Add a Comment:
Post new commentTrevorB said on 2011-05-08 @ 20:29 NZDT: Report abusive post
I'm a pensioner, and I live almost entirely on the equivalent of NZ Superan (in fact about 55% of my pension comes from overseas, and is deducted by WINZ from my payments). I haven't yet benefitted a single dollar from my SuperGoldCard. Owing to circumstances beyond everyone's control, times are tough for Kiwis right now. Pensioners must be prepared to carry some of the burden - I agree that SuperGoldCard benefits need to be cut back somewhat - in order to keep it affordable to the taxpayer.
Easy Rider Jude said on 2011-05-08 @ 19:35 NZDT: Report abusive post
Wellington Gold Card users are only 9 am to 3 pm then 6.30 pm, cut the hours for Auckland they have a longer time limit, that would help immensely. Their hours allow for 65 year old workers to virtually travel free if they are working full time. This would also help the Waiheke run, perhapns a Seior could pay 25% of the fare of the Ferry. Someone of importance should hopefully be able to recognise this problem. Perhaps this person lives in the Auckland area.
JoeBlog said on 2010-03-12 @ 09:11 NZDT: Report abusive post
How Ironic. The govt is going to cut back on subsidised travel for pensioners but continues the practice of heavily subsidised travel for current and former MPs who should be well able to afford paying full price, surely reducing MPs perks would more than offset any budgeted shortfalls for the Gold card users. So much for keeping election promises.