Watchdog keeps eye on parking fee rises Author: MATHEW MURPHY Date: 31/12/2005 Publication: The Age
AUSTRALIA'S corporate regulator has been called in to ensure car park operators do not overcharge customers when the State Government's inner-city parking tax takes effect on Monday.
The State Government said yesterday that motorists should not be charged more than about $40 a month extra on long-term parking spaces.
The Australian Competition and Consumer Commission and Consumer Affairs Victoria will clamp down on any operator who tries to charge extra.
Under the tax, car park operators will be forced to pay $400 a year for every long-stay car park, or any public car park used for more than four hours before 9.30am. There are about 48,000 long-term spaces in the central city.
The tax, rising to $800 in 2007, is designed to discourage people from driving into the city, reducing peak-hour traffic.
Treasurer John Brumby said yesterday that any operator who engaged in profit-taking on long-stay or short-stay parks would face fines up to $125,000.
"I am deeply concerned that some car park operators are increasing (the cost of) short-term car spaces and attributing the increase to the long-term car parking levy," he said.
Mr Brumby said he hoped the tax would change the way people travelled to work.
He said that if the levy cut congestion by 10 per cent, or about 5000 cars a day, it would be a good result. "We know it's not necessarily going to be the most popular thing but it's the right thing and it will encourage people to look at car pooling, it will encourage people to look at public transport and the long-term liveability of Melbourne," he said.
Wilson Parking general manager Craig Smith said he had written to long-term customers informing them the extra cost would be just under $40, on top of a monthly bill of about $200 for some spaces. But he said the rise could go beyond $40. "There are other rate increases, CPI, market factors, all things that may see prices go up," he said.
"As we look at the levy in other states there has been no operators fined in terms of profit-taking. This is just a smokescreen to divert attention away from the Government leading up to the election."
RACV spokesman David Cumming said the tax, which will raise $19 million in the first year and $38.5 million in 2007, would hurt motorists.
"Petrol prices are near record highs and on top of that motorists have to pay an extra $40 a month," he said.
State Opposition transport spokesman Terry Mulder said the State Government could not ensure car park operators would not pass costs on through short-stay parking spaces.
"Bringing in the ACCC and consumer affairs is the State Government getting someone else to clean up its mess," he said.
A proposal to ease Melbourne's congestion, from La Trobe University economists Harry Clarke and Andrew Hawkins, involves an electronic cordon around the periphery of the CBD, as indicated. Cameras would be installed at 20 entry points and vehicles crossing into the cordon would be charged.