State Government plans to introduce a car parking levy to reduce traffic congestion in central Melbourne have been attacked in a report. Author: By AILEEN KEENAN Date: 27/07/2005 Publication: The Age Publication: The Age 27th July 2005 Author
Parking levy to cut traffic attacked
State Government plans to introduce a car parking levy to reduce traffic congestion in central Melbourne have been attacked in a report.
The Access Economics report, commissioned by the Property Council of Australia, said a levy on long-term car parks was a revenue-raising measure.
It said the Government's rationale for the levy "were conflicted, confused" and likely to generate "perverse results".
The report said the levy on long-term car parking would increase the supply of short-stay off-street parking, which directly undermined its role in reducing traffic congestion.
The property council's Victorian executive director, Jennifer Cunich, said one city-based business estimated the levy would cost $1 million a year.
The report said similar parking levies in Sydney and Perth had failed to reduce congestion and in some cases compounded the problem.
The State Government argues that the $400 annual levy that will apply from January 1 next year on long-term parking spaces will reduce congestion, attract more shoppers to the city and raise revenue to fund public transport initiatives.
The levy is expected to raise $19 million in 2005-06 and $38 million the following year when it will be raised to $800.
Access Economics found the policy objectives could not be achieved. "It may either reduce congestion or raise revenue, but it cannot do both," the report said.
Last week seven key industry associations appealed to Treasurer John Brumby to delay the introduction of the tax and order further research. They said the tax would harm business, property owners and employees.
A spokeswoman for Mr Brumby said the Bureau of Transport Economics estimated that congestion cost Melbourne around $2.7 billion a year.