BUS operators have been warned they are in danger of "cutting their own throats" by demanding more cash from the deal to carry pensioners for free.

New Forest East MP Julian Lewis says if companies are too greedy they face jeopardising Hampshire's countywide travel scheme and threatening the subsidies they receive from it.

Several operators, including Stagecoach, First and Wilts & Dorset, have lodged an appeal with the government because they say the funding does not represent the increased number of passengers they are now carrying.

The companies receive money from local councils to cover their costs, some of which come from the authority budgets and some from central government, but say they should be getting the equivalent of the full fare every time someone uses their pass.

If the operators win, the costs of running the scheme would become so high it is likely most councils would be forced to withdraw it.

Thousands of Daily Echo readers have already signed our petition calling on the government to maintain the free passes.

Dr Lewis said it is important the companies do not ask for too much. "It seems to me the bus companies are in danger of cutting their own throats, he said.

"I think a free bus scheme can only work on the basis that the buses are able to supply the seats at a much reduced price, because otherwise they wouldn't be occupied, and in return the operators get a guaranteed lump of money.

"If the companies are too greedy about this they will end up undermining the whole scheme."

The MP added that operators are already receiving several million pounds in funding from the deal with councils. "They're actually gaining from it. The only question is, where is the fair compromise level for people who wouldn't otherwise use it to the same extent," he said.

"I really think they are being a bit unreasonable.

"If they're not careful they could lose out on the guaranteed funding, while the pensioners would lose out because they can't use the services."