'Greedy' parking levy Author: Mathew Dunckley Date: 23/09/2005 Publication: The Financial Review
Details of the Victorian government's controversial parking levy were released yesterday to howls of disappointment from the property and parking industries.
Treasurer John Brumby said the final shape of the levy announced in this year's budget was the result of "extensive consultation".
The levy comes into force on January 1 and places a $400 charge on long-term car parks in the CBD, Docklands, Southbank and St Kilda Road. The fee jumps to $800 in 2007.
To attract the levy, Mr Brumby said private car parks would have to be available for use on an ongoing basis either by an owner or through a leasing arrangement.
Public car park operators will have to treat 75 per cent of their car parking spaces as long-term but could appeal, he said.
Disabled car parking spaces and spaces reserved for shift workers are exempt.
"This levy is aimed at reducing pollution and greenhouse gas emissions at peak hours by lowering the number of cars coming into the city each day," Mr Brumby said.
Mr Brumby said the levy would encourage motorists to use public transport or to car pool and was only one of a "suite" of planned anti-congestion measures.
The government will reap almost $40 million from the levy, with $5 million going to Melbourne City Council.
The Australian Financial Review yesterday revealed that confidential research for the council had found there was no proof a similar levy in Sydney had succeeded.
"We believe this will work," Mr Brumby said.
Property Council executive director Jennifer Cunich said the levy could cost two-car families up to $50 per week.
"What's the point of having a central business district if people can't afford the travel costs to get there?" she said.
Ms Cunich said the council supported increased public transport patronage, but believed a car-parking levy was not the best way to achieve it.
Steve Smith, state manager for Secure Parking, Melbourne's biggest car park operator, said the costs associated with the levy could make the industry unviable.
Opposition Leader Robert Doyle described the levy as "greedy" and pledged to scrap the tax in government.
Environment Victoria executive director Marcus Godinho welcomed the announcement but said more investment was needed to improve public transport.
KEY POINTS
? The Victorian government will reap almost $40 million from the levy.
? Melbourne City Council will receive $5 million.