Wellington, March 12 NZPA - 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 announced yesterday 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.

That was met with concern by senior citizens lobby group Grey Power and opposition MPs who said it could lead to the elderly losing some of their travel privileges.

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

Mr Howard said any practical assistance for the elderly was encouraged as it improved the quality of life for many, and was pleased with the steps the Government had said it would take to address budget issues.

Mr Joyce said the Government was committed to continuing the SuperGold card and its transport concessions, and would not be seeking to introduce co-payments or any other way of changing those concessions.

But as the population aged, ways needed 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 yesterday, and Mr Joyce 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.

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.

Mr Hughes said there were concerns the Government would use the situation as an excuse to make cuts rather than improvements, while Ms Kedgley said 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.

Mr 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 on TV One.

"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."

Mr 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."

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