New Zealand First leader Winston Peters says pensioners will ultimately pay the price for attempts to rein in costs of the SuperGold card scheme he introduced.
The scheme provides senior citizens with some free off-peak travel on public transport, and has been under review.
The Transport Ministry has told regional authorities, which contract transport operators, that the reimbursement rate will be reduced from 75% to 65% until June 2012.
However, it also says there will be a hardship clause to allow councils and operators to claim a higher reimbursement rate.
Transport Minister Steven Joyce says the scheme was originally budgeted at $18 million a year but it's heading towards $25 million.
Winston Peters says operators will pass any cost increase to SuperGold card users, and the Government should instead be focusing on expanding the scheme, especially for people who live in areas which don't have public transport.
The director of Dunedin Passenger Transport, Kayne Baas, says that if the subsidy were cut his company would have to consider introducing a fee for SuperGold card holders.
