BUS travel for Welsh pensioners and the disabled will be free from April 2002, AMs have unanimously agreed.

In a rare display of unity, AMs of all parties joined in praise of the scheme, which is likely to prove the most popular decision made by the Assembly since its creation. However, there were questions about how it will be funded.

Pauline Jarman, Plaid Cymru AM and leader of Rhondda Cynon Taff council, argued that insufficient money has been allocated to local authorities to meet the cost of reimbursing bus operators. Bus companies will claim back the free fares from their local council. She said: "This is a valuable scheme, which local authorities are proud to support, but we need sufficient funding to run it.

"The Assembly government's estimates are based on population figures, not the number of journeys likely to be made. Urban authorities will struggle to meet the cost, while rural authorities - where there are fewer buses - will be better off."

Mrs Jarman estimates that her own council will be £300,000 short in meeting demand. But she predicted the problem could be even greater with pensioners from around Wales visiting Cardiff to use the buses freely.

Some £7.2 million has been set aside for the scheme this year, rising to £13.9m the following year, when the age threshold will be 60 for men and women.

But tyransport minister Sue Essex said it was virtually impossible to estimate the costs in the first year and stressed the goodwill towards the project from councils. "We are funding a study in the first year to make sure the costs are fair and reasonable. If there needs to be an adjustment there will be one."

Monmouth AM David Davies raised concerns about the way bus operators would be repaid, and questioned whether they would be able to make a profit. But even he agreed the scheme was a good one and was "long overdue".