NSW minister suspends new applications for regional travel card
A travel card trailed by the last government was supposed to give regional apprentices money to cover travel costs. But The Daily Telegraph found that it can also buy cigarettes and doughnuts.
NSW
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Regional apprentices will be cut off from a government card that can be used to buy cigarettes and junk food with taxpayer money.
It comes after The Daily Telegraph revealed a travel card for trainee bush tradies could be used to buy anything sold at a service station.
Following the revelations, Regional Transport Minister Jenny Aitchison declared she will stop any more apprentices applying for the card.
“We are suspending applications for the trial of the Regional Apprentice and University Students Travel Card, following reports that the card is easily misused,” she said.
“We know that uptake of the card has been very low.
“We will assess the time and cost of fixing the system but will not throw good money after bad.”
It came after the Telegraph revealed taxpayers are paying millions of dollars to give regional apprentices and university students money that can be used for cigarettes and junk food.
The Perrottet government launched the card before the election to help regional apprentices and students travel to university and TAFE to the tune of $250 per year.
It can also be revealed that each card has cost taxpayers more than $800 to deliver.
The card can be used for a range of travel costs, including filling up at petrol stations.
But spending is not just limited to filling up the car. it can also be used to buy food, drinks, and even cigarettes at the servo counter.
A card, issued for the purposes of testing the scheme, on Tuesday worked to buy cigarettes at multiple service stations.
The card was obtained by the Telegraph after it was issued.
The card on Tuesday worked to buy a 20 packet of Holiday Crush cigarettes for $32 at one service station. At another, the card worked to buy a $33 pack of Bond Street classics, a strawberry doughnut and a can of Mother energy drink.
The Minns government is set to axe the so-called “Regional Apprentice and University Students Travel Card,” as part of widespread spending cuts in the September budget.
A two-year trial of the scheme launched in February is costing $98 million.
As of June 16, 6802 applications for the cards had been received, with just over $1.14 million spent, according to government data.
Almost $1.135 million has been spent with the cards at service stations to June 16.
More than $1.7 million worth of cards have been issued. Including the $4 million cost to administer the program, each card has so-far cost the taxpayer $838.
Regional Roads Minister Jenny Aitchison has previously slammed the card as a “joke”.
She said the Telegraph’s findings were “really concerning”.
Transport for NSW confirmed that the card can be used to buy anything on sale at a service station.
A spokeswoman said restrictions were “placed on the types of businesses the travel card could be used at,” but the scheme “does not restrict specific purchases within businesses.”
The card’s product disclosure statement states it can only be used to pay for “Authorised Transport Expenses”.
“If you try to use your card for a transaction that is not categorised by the merchant as an Authorised Transport Expense, your card will be declined,” it reads.
Opposition spokesman and former Minister Sam Farraway said the previous government had instructed bureaucrats to ensure the card could only be used to pay for fuel when shopping at a service station.
“The intention was for this card to be directly associated with travel costs including fuel.
“Anyone who accepts the card agrees to that,” he said.
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