ORC urges Government rethink on SuperGold funding

The Otago Regional Council (ORC) is keen to see annual Government funding of the SuperGold passenger transport scheme keep pace with inflation and increased demand. The Council has stressed this in a submission to the NZ Transport Agency, which asked key stakeholders in the scheme to respond to a discussion paper on the issue.

The SuperGold Card entitles New Zealand residents aged 65 years or over, and those under 65 years receiving New Zealand Superannuation or the Veteran's Pension to free off-peak bus travel.

Passenger transport operators are reimbursed 75% of the adult fare, and administrative costs, including those borne by regional councils, are covered by the SuperGold scheme.

The council said in its submission it was not surprising that the annual $18 million funding allocation was insufficient to meet the needs of the scheme in its present form.

The submission said that funding should be increased, and at the very least, adjusted, to allow for inflation.

ORC Chairman Stephen Cairns said increased fare costs and a projected increase in consumer demand would place the scheme under continuing pressure.

"ORC's patronage and revenue data did not support the assertion that operators in Dunedin were being over-compensated for taking part in the scheme. Furthermore, there was a risk that operators might no longer take part in the scheme if they felt they were being poorly compensated for their involvement," Cr Cairns said.

"Reducing the reimbursement rate to operators, as suggested in the discussion paper, is not a viable option. Council wants to ensure that those who qualify for the free bus travel are able to get it."

The council noted that certain 'premium' services accounted for a "disproportionate slice" of the available funding. It said this created an opportunity to address such cost anomalies, perhaps by fare capping.

ORC Finance and Corporate Committee Chairman, Duncan Butcher, said the statistic that the Waiheke Island ferry service comprises 2% of trips and 11% of the scheme costs indicates "an obvious case for specific review."

"Other identified 'premium' services similarly should be looked at before a wider scheme review is embarked upon," Cr Butcher said.

The council submission noted that there are current regional inconsistencies which should be taken into account in any future funding allocation model.

"For example, Otago presently has 3.4% of all SuperGold card trips nationally, yet receives only 2.5% of the funding," the submission concluded.