Annette King

Wellington, March 16 NZPA - Labour has defended the lack of means-testing on SuperGold privileges saying it makes it easier to administer.

The Government moved quickly last week to appease pensioners concerned their SuperGold card free off-peak transport privileges may be eroded because of the scheme's escalating costs.

In particular, Transport Minister Steven Joyce noted the Waiheke ferry subsidy was costing $2 million and questions had to be asked over its value.

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

Labour's transport spokeswoman Annette King said Mr Joyce had been forced to make a U-turn.

"There was a very definite announcement made by Mr Joyce last week and within 24 hours he had been reprimanded told he ought to back off and here today he now says he made a mistake. There was no mistakes in the words he used. He was definitely going to review with a look to cut it and particularly mentioned the Waiheke Island," Ms King said.

Some have questioned whether the policy was intended to subsidise even wealthy pensioners on day trips to Waiheke, but Ms King said it was best the scheme was universal.

"The idea was to enable all senior citizens over 65 to be able to access off-peak travel so they could continue a life after they retired. It gives access to people with money and without money and every now and then it is a good thing to have a universal approach to things.

"I don't think we should means test. How would you means test, the bureaucracy around that is huge. It is clean, it's straight forward and it enables people where there is public transport to be able to access it when those buses and ferries aren't being used."

Ms King said the extra business had also boosted the Waiheke Island economy at a time when it could have suffered badly during the recession.

"It is more than providing transport for elderly people," Ms King said

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.

Mr Joyce has said other ways would 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," Mr Joyce said.

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