'Anti-Melbourne' tax Author: By HUGH MARTIN Date: 23/07/2005 Publication: The Age
SEVEN key industry associations have appealed to Victorian Treasurer John Brumby to delay the introduction of the State Government's proposed car parking levy, allowing for research and transport modelling.
The disparate group, headed by the Property Council of Australia, includes the Australian Retailers Association, Real Estate Institute of Victoria, Victorian Automobile Chamber of Commerce, Shopping Centre Council of Australia, Victorian Parking Industry Association and Master Builders Association.
A letter from the group to Mr Brumby expressed concern about how to budget for the tax and how to recover costs.
"We share the belief that this new tax will harm businesses, property owners and employees. The tax is anti-Melbourne and could result in a flight of businesses to non-taxed locations," the letter states. "We dispute the Government's assertions that this levy will reduce car use in Melbourne's CBD while attracting more visitors and shoppers to Melbourne."
The Government in April announced it would apply a $400-a-year levy on long-term parking spaces from January 1 next year. It proposed the levy would rise to $800 a year in the second year, generating $19 million in 2005-2006 and $38.5 million in 2006-2007.
Melbourne City Council would receive $5 million a year from the new levy to fund urban and transport improvements in the CBD.
However, the levy has received strong opposition, with many groups claiming it to be a revenue-generating exercise rather than an effort to address CBD congestion.
According to PCA Victoria executive director Jennifer Cunich, the policy fails to recognise why many CBD workers drive to the city.
She says it will disadvantage several sections of the community, including shift workers, residents who are poorly serviced by public transport, and working parents.
She says it is rare for such a group to co-sign such letters and request meetings with a minister.
However, Ms Cunich says she is disappointed the letter, sent more than a week ago, had received no response.
"I'll be calling the minister's office next week and raising it.
"We believe strongly that this levy is detrimental to Melbourne - for a congestion levy to work, viable transport alternatives must be available."
She says Melbourne's public transport system is not capable of accommodating a sudden increase in commuters responding to the levy.
A government spokesperson says a final model is still being worked on and people will have the opportunity to comment before the legislation is introduced.