Reassurance over Gold Card privileges

Published: 9:45PM Saturday March 13, 2010 Source: NZPA

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The government has moved quickly to appease pensioners concerned their SuperGold card privileges may be eroded because of the scheme's escalating costs.

The government is reviewing the free off-peak transport scheme for pensioners that is provided by the card because usage is increasing and budgets are likely to be exceeded.

The move has been met with concern by senior citizens lobby group Grey Power and opposition MPs who say it could lead to the elderly losing some of their travel privileges.

Grey Power went public with concerns but national president Les Howard says he has since received assurances from the office of Transport Minister Stephen Joyce that the card's free transport scheme will not be discontinued or cut.

Howard says any practical assistance for the elderly was encouraged as it improved the quality of life for many, and he is pleased with the steps the government has said it would take to address budget issues.

Joyce says the government is committed to continuing the SuperGold card and its transport concessions, and will not be seeking to introduce co-payments or any other way of changing those concessions.

But as the population agesd, ways need to be found to control the cost of the scheme.

"Areas the government is looking to address include a reduction in subsidy levels for transport operators, reducing the administration costs associated with the scheme and potentially capping the amount of subsidy provided to operators for high-cost, high-use services.

"These possible moves will not affect the gold card entitlements that superannuitants receive."

The Waiheke ferry service was one of the high-cost services raised and Joyce said questions need 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.

Labour's Darren Hughes and Sue Kedgley from the Greens questioned the government's intentions over the SuperGold scheme, which was created by New Zealand First when it was in government with the Labour Party.

Hughes says there are concerns the government would use the situation as an excuse to make cuts rather than improvements, while Kedgley says any proposal to tighten the reins on an important $18m a year service involving helping the elderly with public transport needed to be put in perspective with the billions being spent on motorways.

Joyce said any suggestions that concessions to the elderly would be cut were "scaremongering and wrong".

NZ First leader Winston Peters said he didn't believe the government's assurances.

"It's a breach of promise on behalf of the government, it's creative accounting of the very worst sort," he said.

"It's a disgrace to see elderly people being attacked on this...these people paid some of the highest taxes in the country's history."

Peters suggested the government was using a review as a pretext to bring in a "slash and burn policy" on a scheme it had promised to maintain.

The Maori Party welcomed the government's assurances.

"The SuperGold card scheme is a valued and much needed service for people over 65," said senior citizens spokeswoman Tariana Turia.

"There are tens of thousands of elderly people who may not be able to drive, who are on low incomes and who need to get from A to B to get food, visit relatives in hospital and play a role in their communities."

Turia said she fully supported a review of the scheme if it focused on ensuring the longevity of the SuperGold card services.

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