Key Takeaways
- The government is reducing the transport subsidy for elderly and disabled people from 75% to 65% under the Total Mobility scheme
- The scheme provides discounted taxis and public transport fares for those with long-term impairments
- The number of registered users has increased from 108,000 to 120,000 between 2022 and 2024/25, and the number of trips has increased from 1.8 million in 2018 to 3 million in 2024/25
- The government claims that the increased demand has put a strain on the scheme’s funding, with a predicted shortfall of $236m over the next five years
- The reduced subsidy is expected to save the government money, which will be recycled back to public transport authorities to reduce the shortfall
Introduction to the Total Mobility Scheme
The Total Mobility scheme is a vital service that provides discounted taxis and public transport fares for elderly and disabled people with long-term impairments. The scheme has been in place for several years, and its popularity has grown significantly, with the number of registered users increasing from 108,000 to 120,000 between 2022 and 2024/25. The number of trips taken under the scheme has also increased dramatically, from 1.8 million in 2018 to 3 million in 2024/25. However, this increased demand has put a strain on the scheme’s funding, with the government predicting a shortfall of $236m over the next five years.
The Government’s Decision to Reduce the Subsidy
In response to the predicted shortfall, the government has announced that it will be reducing the transport subsidy for elderly and disabled people from 75% to 65%. This decision has been made in an effort to stabilize the scheme’s funding and ensure its long-term sustainability. Transport Minister Chris Bishop and Disability Minister Louise Upston claim that the previous Labour government’s decision to increase the subsidy from 50% to 75% in 2022 did not take into account the increased demand for the scheme. As a result, the government is now facing a "fiscal cliff" that needs to be addressed. The reduced subsidy is expected to save the government money, which will be recycled back to public transport authorities to reduce the predicted shortfall.
Impact on Disabled New Zealanders
The decision to reduce the subsidy has been met with criticism from Labour’s Priyanca Radhakrishnan, who claims that it will make life harder and more expensive for disabled New Zealanders. Radhakrishnan argues that affordable transport is not a luxury, but a lifeline that enables disabled people to live independently, participate in everyday life, and maintain their dignity. She also points out that the government’s decision to cut the subsidy comes at a time when people are already struggling with the cost of living, making it even more difficult for disabled New Zealanders to access the services they need. The government’s decision has been seen as a betrayal by disability communities, who feel that their needs are not being taken into account.
The Government’s Justification for the Cuts
The government claims that the decision to reduce the subsidy is necessary to ensure the long-term sustainability of the Total Mobility scheme. Upston argues that the government wants to "stabilise" the scheme’s funding pressures "in a way that ensures financial sustainability, consistency in how the service is delivered, and fairness across New Zealand". The government also plans to release a discussion document to consult on further changes to the scheme, with the aim of ensuring fairer, consistent, and more sustainable access to services for people with the greatest need. However, critics argue that the government’s decision to cut the subsidy is a short-sighted move that will have a negative impact on disabled New Zealanders, and that more needs to be done to support this vulnerable group.
Conclusion and Future Directions
The decision to reduce the transport subsidy for elderly and disabled people under the Total Mobility scheme is a complex issue that has sparked debate and controversy. While the government claims that the decision is necessary to ensure the long-term sustainability of the scheme, critics argue that it will have a negative impact on disabled New Zealanders who rely on the scheme to live independently. As the government moves forward with its plans to consult on further changes to the scheme, it is essential that the needs and concerns of disability communities are taken into account. The government must ensure that any changes to the scheme prioritize the well-being and dignity of disabled New Zealanders, and that they are not left behind in the pursuit of fiscal sustainability. Ultimately, the goal should be to create a transport system that is accessible, affordable, and inclusive for all, regardless of ability or disability.
