Parking levy unlikely to ease traffic Author: Mathew Dunckley Date: 22/09/2005 Publication: The Financial Review
There is no proof that placing the controversial parking levy in Melbourne's CBD will ease congestion, according to a leaked internal report from Melbourne City Council, which publicly supported the proposal in a bid to unclog the city's streets.
Under the proposed levy, owners of long-stay or permanently leased car parks will pay $400 per parking space from January 1 and double that amount the following year, tipping almost $40 million into Victoria's coffers.
But a draft report, seen by the Australian Financial Review, analysed the impact of Sydney's similar levy, now in operation for almost 10 years, and said: "There is a lack of published data to determine what the effect of the levy has been on reduced road congestion or transference to public transport.
"The aim of strategies such as this is to reduce congestion and pollution and to encourage the use of public transport, especially by commuters," it said.
"A levy alone cannot achieve these aims and complementary planning policies such as the restriction on the number of car parking spaces for commuters in the CBD must also be applied." Property Council executive director Jennifer Cunich said the report's findings were no surprise.
"This just supports what we have been saying that there is no justification for [the levy]. It is just a revenue-raiser," she said.
The January 1 deadline for implementation was also looming and the state government had not explained the administration of the levy.
"We haven't seen anything. They said they would come back [to the industry] and we haven't heard a word," Ms Cunich said.
Councillor Peter Clarke said the report showed the levy was simply a tax on drivers and should be scrapped.
Deputy Lord Mayor Gary Singer refused to comment on the report but defended the council's "in-principle" support for the levy, saying stinging long-term car park users would create space for short-term users and encourage people to use public transport.
"The cost of petrol is already having an effect on the numbers of people using public transport and coming into the city," he said.
Victorian state government spokeswoman Campbel Giles said the levy was still planned for introduction on January 1 and details would be released "very soon".