Transport Minister Pat Conlon today announced the $30 million contract had been awarded for the ATLAS system, which would be introduced by 2013.

The system has previously been used in cities including Montreal and Houston.

Travellers can “top up” the cards, which are then swiped against onboard validators.

Mr Conlon said the Government was confident of overcoming technical problems associated with the changeover witnessed in other states.

He said the current cardboard ticket system had “served us well”, but that change was necessary as the Government continued upgrading the public transport network.

He deflected as “cynical” suggestions the announcement and looming completion of the Entertainment Centre tramline extension were timed as pre-election vote winners.

Mr Conlon said the current tickets would remain valid after the introduction of the new system and the smartcards and magnetic tickets could be used on the same machines.

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State Transport Minister Patrick Conlon told the parliamentary Budget Estimates Committee bids would be evaluated between now and August.

The new system is understood to be likely to involve a combination of rechargeable Smartcards and disposable magnetic tickets to cover single trips.

The Government set aside $29 million over four years to buy and implement the system but said it did not have a definitive time frame for its implementation. The existing Crouzet ticket system has been operating for more than 20 years.

The Government is finding it increasingly difficult to get parts for it. The system also costs about $225,000 a year in lost revenue.

Mr Conlon told Parliament: “We deal with these matters with the highest possible probity. I can guarantee I will have absolutely no role in selecting a bidder.”

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All 275,000 holders of the Seniors Card will be able to travel free on trains, buses and trams from 9.30am to 3pm on weekdays, all weekend and public holidays from July 1.

The current 50 per cent ticket concession available to senior’s cardholders and other concession groups for peak-hour travel will be maintained.

Premier Mike Rann said it was an initiative that older South Australians deserved.

Transport Minister Patrick Conlon, asked if the election campaign had started early, said it was an idea “people can get their teeth into as opposed to the Liberals’ three ideas for a hospital”.

“There are things you do for people and there are gimmicks,” Mr Conlon said. “We are not going to offer three options about how people catch buses.”

Concessions from the State Government – on council rates, water, energy and vehicle registration fees – that directly assist elderly South Australians and pensioners cost, on average, between $300 and $870 a year.

Mr Conlon said the new scheme would cost about $10 million a year.

He said it would help attract even more people to public transport and would improve the situation on peak-hour travel by freeing up more space for those commuters.

Mr Rann said people were being hit hard during the global economic downturn – especially self-funded retirees whose investments were returning very little as interest rates dropped and so much had been wiped off the value of shares and stocks.

“We want older people to keep moving and this scheme offers a good incentive to help them to do so,” Mr Rann said.

Opposition spokeswoman on the ageing Isobel Redmond said the plan to offer free public transport to senior citizens was a carbon copy of Liberal policies.

She said the WA Liberal Government had announced an identical plan just a couple of weeks ago.

“Last week, when the state Liberals proposed free public transport during Clipsal, Mr Rann demanded to know how it would be funded,” Ms Redmond said.

“Mr Rann must now explain how he will afford his plan and where are his costings?”

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