Government Squanders Supergold Card’s $18m

Government Squanders Supergold Card’s $18m

The government has squandered the $18m annual allocation for the SuperGold Card scheme’s transport subsidies, according to an spokesperson for New Zealanders aged 55 plus.

“By doing nothing to manage the SuperGold Card (SGC) and transport subsidy, the government may be heading towards a budget blow out that will jeopardise the scheme’s future for senior citizens,” says Peter Cox, Managing Director of Seniors Card, a members organisation for people aged 55 and over.

Mr Cox believes the government have failed to negotiate competitive rates from transport operators, and potentially turned a blind eye to misuse of the scheme by a minority of cardholders.

“The current government inherited a scheme that was rushed into place as an election bribe to pensioners by Winston Peters as part of the coalition arrangements of the last government, but has done nothing in this term of government to rectify some glaring omissions.”

Mr Cox understands standard senior citizen fares are being paid for all trips taken whether they be ferry, bus or train, with no discounts negotiated by government for the additional passenger numbers travelling on existing scheduled services; resulting in these fares going straight to the bottom line for the transport companies.

Industry spectators have also cited evidence of SuperGold Card misuse, with a minority of Senior Citizens lending their cards to friends not entitled to use the card, as well as pensioners tripping backwards and forwards to Waiheke Island several times in a day to ‘enjoy the cruise’.

Seniors Card is appealing to the Government to start managing the SGC scheme, or find someone who can do it for them, ensuring the continuation of benefits currently provided for senior citizens. The organisation recommends:
• Negotiation of lower subsidy levels for bus, train and ferry trips
• Photo ID introduced to SGC
• Restrictions on numbers of ferry trips that can be taken in a year
• Introduction of smartcard technology.

The organisation suggests new lower subsidies would reflect the fact that transport companies have not incurred any significant additional costs with the additional passenger numbers and can provide these journeys at a much better rate than the existing Senior Citizen standard fare.

“The cost of introducing photo ID onto the SGC will be offset by preventing misuse of the card.

“And with ferry trips being a high percentage of the overall costs of the transport subsidy it is not unreasonable to limit the number of trips that can be made in a year by any one pensioner. The introduction of smartcard technology could give the ability to apply commercial parameters to transport options and other benefits in the future,” said Mr Cox.

He says the current scheme falls short of the potential that could be achieved for senior citizens.

“We believe that the government must act quickly to improve the management of the overall SGCrd scheme, to ensure that the existing benefits that our Senior Citizens currently enjoy are not only maintained but improved upon,” says Mr Cox.

Seniors Card is a member community providing social and financial benefits for the 55+ demographic in New Zealand. It offers members exclusive buying privileges, including daily savings, special treats and travel to Waiheke Island and other New Zealand destinations, and overseas.

What’s your view? Visit www.seniorscard.co.nz and have your say.

ENDS

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