SuperGold Card public transport review FAQs

SuperGold Card Review completion frequently asked questions

What did the SuperGold card review look at?

The review examined the SuperGold card (SGC) scheme and identified potential changes to ensure its sustainability.

This included looking at:

• the current usage data and the uptake of the scheme in each region
• users’ and stakeholders’ views of the scheme
• how the definition of ‘off-peak’ is used around the country
• how operators and councils are being reimbursed for SuperGold card trips
• investigating levers to reduce the financial pressure on the scheme.

What are the findings of the SGC review?

The review found that the free off-peak public transport scheme is regarded as a key benefit of the SuperGold Card by cardholders. The scheme is seen by users as a way to build community involvement of the elderly, and to have social, health and welfare benefits.

It also identified some issues that will need to be looked at in order for the government to get the best value for money and ensure the long term sustainability of the scheme.

These include fairness in relation to different cost structures across bus, rail and ferry services and regional differences in public transport networks and coverage.

The review also identified a need for consistency throughout New Zealand in considering the addition of new services to the scheme in the future.

What are the changes to the scheme as a result of the review?

The government has committed an additional nine million dollars to the scheme over the 2010/11 – 2011/12 financial years.

Other changes to the scheme comprise:

• Regional councils and operators will be reimbursed at 65 percent of the average adult fare for the 2010/11 – 2011/2012 financial years (currently 75 percent).
• Regional councils will be required to absorb administration costs so funding can be redirected to the travel concessions.
• The NZ Transport Agency’s budget for administering the scheme has been significantly reduced.
• A moratorium will be placed on major new services for the next two financial years to reduce immediate pressure on the scheme’s budget.

The scheme also includes a hardship clause so that operators who can provide the evidence that they would not be able to continue to offer services to SuperGold card holders at a 65 percent reimbursement rate can apply for a higher rate for these specific services (up to the original 75 percent).

Transport officials will continue to work with operators and councils on issues raised during the review process to ensure the long term sustainability of the scheme.

How much of the SGC budget was allocated to administration costs?

The total of $18m per annum was split $17.3m for the travel concession subsidy and $0.7m for administration.

With the changes councils will absorb administration costs and the NZ Transport Agency will work with a significantly lower administration budget. Funding currently earmarked for administration will instead be redirected towards funding travel concessions.

Are all existing services staying in the scheme?

The government does not see any reason why any service should be lost from the scheme as a result of a lower reimbursement rate. SuperGold passengers are providing additional revenue for operators at off peak times where there was on most services under utilised capacity.

One of the key principles of the scheme is that operators should not make a loss as a result of carrying SuperGold passengers during the off peak period.

Different regions have different circumstances that need to be taken into consideration which is why the scheme includes a hardship clause. Where operators can provide the evidence that they would not be able to continue to offer services to SuperGold card holders at a 65 percent reimbursement rate they can apply for a higher rate for these specific services - up to 75 percent.

Why is there a moratorium on major new services for the 2010/11 and 2011/12 financial years?

A moratorium is to be placed on any major new services entering the scheme for the 20100/11 – 2011/12 financial years to reduce immediate financial pressure on the scheme.

Existing services in the scheme will still be able to be fine tuned during this period as well as additional services, where they are part of the existing urban network.

For the long-term, further work is required on the scope of the scheme. This will include how new services are considered for inclusion in the scheme.

What information has fed into the review?

Review work has included:

• analysis of patronage data, and monthly scheme expenditure information collected since the scheme began in October 2008
• two scheme user surveys measuring changes in travel behaviour and to determine benefits to users and the wider economy from the scheme
• discussions with key user groups on the use of the scheme
• a consultation document issued to key stakeholders.

Who was consulted as part of the review?

In conducting the review transport officials have consulted key stakeholder groups, including regional and local authorities who have responsibility for planning and funding public transport, Local Government NZ, public transport operators, the Bus and Coach Association, Grey Power, Age Concern NZ, and the Ministry of Social Development.

Background frequently asked questions

Why was the SuperGold card scheme reviewed?

At the time the SuperGold card scheme was implemented in 2008 it was announced a review would be undertaken after the first 12 months to identify any refinements that may need to be made to ensure it stays within budget.

The initiative is new to New Zealand and as there is little international data on similar schemes, projections on uptake have largely needed to be estimated based on available information.

After the first 12 months of operation it has become clear that in its present form, the scheme was not financially sustainable.

Who conducted the review?

The Ministry of Transport conducted the review in collaboration with NZ Transport Agency (NZTA).

When did the review start?

October 2009.

How much funding was originally committed to the scheme and for how long?

When the scheme was announced in 2008 $18 million per year was committed on an ongoing basis to cover the cost of concessions and administration costs.

How much is being spent on the scheme?

Over the twelve months to July 2010 $19.8 million has been spent on SuperGold card concessions across the country. (This does not include some additional administration costs).

What is the average cost of a reimbursement on a SuperGold trip?

The regional average differs but the vast majority of trips cost $2 – $3.

How many trips a year (on average) do SuperGold card holders make?

Approximately 16 trips per person a year.

What regions account for the most SuperGold card funding?

Auckland followed by Wellington and Canterbury, because they are the larger cities and have extensive public transport networks.

How many SGC holders are there?

Currently more than 550,000 (as of August 2010).Note – not all card holders use the transport concession.

How many more SGC holders are expected to come into the SGC scheme each year?

20,000 (net).

Will the scheme be regularly reviewed?

The scheme will continue to be monitored on a regular basis to ensure its financial sustainability and to make any refinements.

Why is there no afternoon off peak cut off in Auckland?

Free afternoon/evening peak travel in Auckland has never been part of the government’s SuperGold card scheme and is not funded from the SuperGold card budget.

Senior citizens in Auckland with a valid Auckland Regional Transport Authority (ARTA) Senior Citizen ID card or SuperGold card travel free during the evening peak due to an arrangement involving ARTA, the council and the NZ Transport Agency (NZTA) to share the cost of funding.