About the National Roads and Motorists Association

Transcription

1 NRMA s PARKING STRATEGY FEBRUARY 2015

2 About the National Roads and Motorists Association Better road and transport infrastructure has been a core focus ever since the National Roads & Motorists Association (NRMA) first came into being in 1920 when our founders lobbied for improvements to the condition of Parramatta Road in Sydney. Today NRMA continues working with government, advocating for more road funding to improve safety and for solutions to ever increasing traffic congestion. By working together with all levels of government to improve not only road infrastructure but also public transport infrastructure we can give motorists a real choice about how they get around. NRMA believes that efficient roads, public transport and better facilities for cyclists and pedestrians work hand in hand to solve the many transport problems that we face day. 1

3 Contents Introduction... 3 Recommendations... 4 The importance of car usage in Sydney... 5 Commuter Parking... 6 Future Proofing Commuter Car Parks... 8 Parking Space Levy Revenue... 9 Parking Innovation Smart phone applications Peer to Peer Parking (P2P) Parking Guidance Systems Parking Fine Revenue Hypothecation of parking fine revenue Independent reviews of parking fine infringement notices

4 Introduction The National Roads & Motorists Association (NRMA) has developed this parking strategy to restart the debate about the need for state and local governments to address the parking crisis currently faced by motorists across NSW. NRMA has long advocated for governments to pay greater attention to the parking needs of motorists. For NRMA Members and motorists, the availability and cost of parking remains a major concern. Over many years, successive state and local governments have failed to adequately provide comprehensive or viable solutions to address the parking crisis, causing frustration, contributing to increased congestion on Sydney roads and increasing the cost of motoring. With the population of Sydney rapidly expanding and the number of cars on the road increasing at a similar rate, the parking crisis will continue to worsen if no action is taken. This means that action must be taken sooner rather than later to address this on-going problem. NRMA s parking strategy provides government with 9 common-sense recommendations to help address NSW s parking crisis and provide motorists with a fair go. 3

5 Recommendations Recommendation 1: That the NSW Government develop and publicly release a long term Commuter Parking Strategy with a clear plan to upgrade current commuter car parks and to build new commuter car parks at key rail and transport interchanges, including costings and estimated timelines for construction. Recommendation 2: That all new commuter car parks provide for future population growth and increased demand for public transport services, particularly in Sydney s South West and North West Growth Centres. Recommendation 3: That the NSW Government guarantees that it will not increase the rate of the parking space levy or expand the parking space levy to additional districts. Recommendation 4: That a greater portion of revenue collected from the Parking Space Levy be reallocated into building new, or upgrading existing, commuter parking facilities at key transport interchanges. Recommendation 5: That governments work with the private to sector develop innovative smart phone parking applications that make parking easier and reduce congestion, particularly on local roads. Recommendation 6: That the NSW Government encourages motorists to use peer to peer (P2P) parking applications as an alternative to on-street or commuter car parking. Recommendation 7: That state and local governments consider installing parking guidance systems for on-street and commuter parking facilities to make finding a car park easier for motorists. Recommendation 8: That the NSW Government considers introducing legislation that requires local councils to hypothecate parking fine revenue into a special fund for local road upgrades. Recommendation 9: That Local Government Authorities (LGAs) collecting more than $1 million in revenue per annum from parking fines be required to establish independent parking fine review panels. 4

6 The importance of car usage in Sydney Whether people like it or not, Greater Sydney is predominately a car city. The dominance of the car is historical and has played a crucial role in the economic development of Sydney. Until recently, employment growth tended to be concentrated in the Sydney and North Sydney CBDs, while population growth occurred in Western Sydney. For many, this meant that driving a car was the most reliable form of transport to and from work. Following World War 2, the rate of motorisation in NSW increased dramatically, linking those living in major population centres across Greater Sydney with the employment centre of the Sydney CBD in the east. In recent years, there has been a recognisable shift from policy makers away from encouraging car usage to managing congestion and influencing behavioural change by discouraging car usage in favour of public and active transport. One specific example of this approach to discourage car usage is the introduction of a parking space levy within the Sydney CBD and surrounding business districts. The explicit purpose of the parking space levy is to discourage motorists from driving. The parking space levy has dramatically increased the cost of parking, making Sydney one of the most expensive cities in the world to park a car. While there has undoubtedly been a shift to other modes of transport in recent years due to increased investment in the public transport network, the car still reigns supreme, and this dominance shows no signs of abating. Vehicle ownership in Greater Sydney grew by 23 per cent to more than 2.6 million over a ten year period between 2002/03 and 2012/13. Over the same period the number of trips made by cars increased by 5 per cent 1. It is also noted that even with substantial increases in the amount of people using public transport, the number of vehicles owned per household in Greater Sydney has increased by 10.4 per cent (1.44 in 2002/03 to 1.59 in 2012/13). According to the Bureau of Transport Statistics, vehicle drivers and vehicle passengers make up 69 per cent of all trips taken within Greater Sydney 2. This figure is particularly significant given that only 11.4 per cent of all trips are currently taken on public transport. This figure gives further emphasis to the importance of motoring in Sydney. NRMA does not oppose investment in public transport and recognises that encouraging people to use alternative modes of transport, along with other initiatives such as travel plans for work places are all important tools to manage congestion. However, it is important that decision makers also recognise that the private car is, and is likely to remain, the preferred mode of travel for the vast majority of trips within Greater Sydney. 1 Bureau of Transport Statistics 2014, Household Travel Survey Report: Sydney 2012/13, Sydney, NSW 2 Bureau of Transport Statistics 2014, Household Travel Survey Report: Sydney 2012/13, Sydney, NSW 5

7 Commuter Parking The provision of safe and adequate commuter parking spaces at key transport hubs can help to reduce congestion on Sydney roads by providing motorists with options to make it easier to access public transport for all or part of their journey. The key to making the public transport network more attractive to existing and potential customers is integration. The provision of seamless interchanges between transport modes, including motor vehicles, is critical to the success of the public transport network. A major impediment to motorists using public transport is ease of access and the quality, quantity and safety of parking facilities at rail stations and transport interchanges. NRMA s 2014 Seeing Red on Rail survey identified the frustration of NSW commuters with the lack of parking facilities near rail stations as a major problem with the public transport network. As highlighted by the graph below, 38 per cent of commuters identified inadequate parking facilities at rail stations as a major concern, second only to safety. Figure 1.1 Top 5 problems with the Sydney Rail network (Source: NRMA Seeing Red on Rail Survey ) 38% 37% 32% 31% 30% Safety Parking Staff Cleanliness Overcrowding The importance placed on the provision of adequate parking facilities at rail stations increased between 2013 and 2014, with an additional 6 per cent of commuters identifying the issue as one of their major concerns with the rail network. Figure 1.2 Change in commuter parking concerns between 2013 and 2014 (Source: NRMA Seeing Red on Rail Surveys 2013/2014) 37% 31% Parking 6

8 NRMA s Seeing Red on Rail results are also consistent with a 2011 survey conducted by the NSW Government that identified that 32 per cent of rail passengers were dissatisfied with parking facilities at stations 3. Following the release of NRMA s Seeing Red on Rail surveys in 2013 and 2014, the NSW Government has delivered or announced the construction of approximately 1500 new parking spaces for commuters across NSW as part of its $770 million Transport Access Program. In March 2014, the NSW Government also announced that more than 1000 rail staff car spaces would be unlocked and handed over to customers within 12 to 18 months. The NSW Government has acknowledged that the provision of commuter parking spaces at rail stations and transport interchanges is the most appropriate way to increase the attractiveness and use of public transport 4. However, as a result of many years of underinvestment and poor planning, a significant amount of work is required to bring the quality and quantity of Sydney s commuter parking facilities up to international standard. When compared to international cities of similar size and population, Sydney fares poorly in the provision of commuter parking spaces. A 2014 report commissioned by NRMA found that while Sydney had the highest number of trips made to the CBD by public transport, it lagged behind Boston, San Francisco and Seattle in the number of commuter parking spaces provided per 1000 people 5. Figure 1.3 Commuter parking spaces per 1000 people (Source: Bitzios Consulting) Sydney Boston San Francisco Seattle With Sydney s population expected to grow from around 4.3 million people to more than 5.6 million people by , greater pressure will be placed on Sydney s congested road network. Infrastructure NSW has estimated that congestion on Sydney roads currently costs the NSW economy $5 billion per annum, with this figure expected to grow to $8 billion per annum by It is estimated by the NSW Department of Planning and Infrastructure NSW that the North West and South West Growth Centres will see a significant increase in population with over 181,000 3 Transport for NSW 2012, NSW Long Term Transport Master Plan, Sydney, NSW 4 Transport for NSW 2012, NSW Long Term Transport Master Plan, Sydney, NSW 5 Bitzios Consulting 2014, Parking in the Sydney CBD: An International Comparison, Robina, QLD 6 Transport for NSW 2012, NSW Long Term Transport Master Plan, Sydney, NSW 7 Infrastructure NSW 2014, State Infrastructure Strategy: 2014 Update, Sydney NSW 7

9 homes expected to be built over the next 25 to 30 years 8. This population growth will result in a significant increase in the number of trips made to and from the Sydney CBD and other major centres such as Parramatta, Chatswood and Macquarie Park over the next 20 years, placing greater demands on our road, rail, bus and light-rail networks. To manage future population growth and the increasing cost of congestion on Sydney s roads, the NSW Government must ensure that appropriate plans are in place to give motorists a real choice between catching public transport and driving. Failure to deliver adequate commuter parking spaces at key transport hubs will give motorists and commuters little choice but to continue to use the already congested road network. To manage the increased demand for commuter parking facilities, the NSW Government must develop a long term Commuter Parking Strategy that sets out a clear direction for the future of commuter parking in Sydney. This strategy must seek to expand the supply of commuter parking spaces in Sydney s outer suburbs and at train stations that are easily accessible from Sydney s motorway network and major arterial corridors. Recommendation 1: That the NSW Government develop and publicly release a long term Commuter Parking Strategy with a clear plan to upgrade current commuter car parks and to build new commuter car parks at key rail and transport interchanges, including costings and estimated timelines for construction. Future Proofing Commuter Car Parks As has been the case with many major infrastructure projects undertaken in NSW over the last two decades, commuter car parking facilities have been built without sufficiently considering or catering for future growth trends. As a result of short-sightedness, many commuter car parks are at capacity from day one with the demand for commuter parking far outweighing supply. In many instances, commuter car parks at Sydney rail stations are at capacity by 7AM each morning. Not only does this frustrate commuters, it also serves to discourage potential commuters from considering public transport as a real alternative to driving to and from work. NRMA s Seeing Red on Rail survey identified Campbelltown, Gosford and Penrith as three major transport hubs with inadequate commuter parking facilities. As noted in table 1.1 below, a majority of commuters at these stations are dissatisfied with the lack of commuter parking spaces 9 : Table 1.1 Leviable Districts as at December 2014 Station % dissatisfied Campbelltown 52% Gosford 59% Penrith 57% 8 Department of Planning and Infrastructure 2014, Sydney, NSW, viewed 14 November 2014, < 9 The National Roads & Motorists Association 2014, Seeing Red on Rail: 2014, Sydney, NSW 8

10 Campbelltown, Gosford and Penrith are important growth areas for Sydney. As the cost of living in the inner-city increases, more and more people are making the North West, South West and the Central Coast home. As a result, the demand for public transport in these growth areas will continue to grow exponentially. While commuter parking facilities are provided at Campbelltown, Gosford and Penrith stations, all three have reached capacity. Failing to plan for future growth or provide sufficient commuter parking spaces at these stations acts as a disincentive for motorists to give up their car for public transport options, causing many commuters to continue driving to and from work. This in turn can cause in further congestion on Sydney s motorways and arterial and local roads during the morning and afternoon peak periods. The NSW Government has planned 4000 new commuter car parking spaces as part of the North West Rail Link project 10. It has been forecast that the North West Rail Link will reduce car trips by 14 million per year after opening the equivalent of 12,000 fewer car trips in an average two-hour weekday morning peak period 11. While this is a significant increase in the number of new commuter car parking spaces, it is important that the NSW Government ensures that mechanisms are in place to increase the number of commuter car parking spaces at rail stations to cater for future population growth and increased public transport demand. Recommendation 2: That all new commuter car parks provide for future population growth and increased demand for public transport services, particularly in Sydney s South West and North West Growth Centres. Parking Space Levy Revenue Since 1992, the NSW Government has collected revenue from a parking space levy placed on offstreet parking facilities within the Sydney CBD and other major commercial and business districts. The purpose of the parking space levy is to discourage car use in leviable districts by imposing a levy on parking spaces (including parking spaces at parking stations), and by using the revenue to encourage the use of public transport (in particular, public transport to and from, or within, those districts) 12. There are two separate categories of leviable districts in Sydney, as outlined in table 1.2 below: Table 1.2 Leviable Districts as at December 2014 Category District Rate Category 1 City of Sydney; North Sydney; Milsons Point $2,260 Category 2 Bondi Junction; Chatswood; Parramatta; St Leonards $ Transport for NSW 2014, Sydney, NSW viewed 25 November 2014, < 11 Transport for NSW 2014, Sydney, NSW viewed 25 November 2014, < 12 Parking Space Levy Act 2009 (NSW) 9

11 2006/ / / / / / / / / / / /18 In 2013/14, the NSW Government collected $104 million from the parking space levy. Assuming that the Government does not expand the parking space levy to additional districts or increase the rates of the levies above CPI, the NSW Government has forecast that it will collect around $115 million in revenue from the parking space levy by 2017/ As indicated by the graph below, there has been a substantial increase in revenue raised from motorists through the parking space levy since 2008/09. This increase can be attributed to the former NSW Government s decision to dramatically increase the parking levy rate from $950 to $2000 in the Sydney CBD, North Sydney and Milsons Point and from $470 to $710 in the business districts of Bondi Junction, Chatswood, Parramatta and St Leonards. This decision doubled the total amount of revenue raised from $50 million in 2008/09 to over $100 million in 2009/10. Figure 1.4 Total revenue collected each financial year from the Parking Space Levy (Source: NSW Budget Papers) $115,000,000 $105,000,000 $95,000,000 $85,000,000 $75,000,000 $65,000,000 $55,000,000 $45,000,000 NRMA strongly opposed the NSW Government s decision to double the parking space levy in NRMA remains opposed to any additional increase in the parking space levy above the rate of inflation or any attempt to expand the existing parking space levy to additional districts within the Greater Sydney region. Recommendation 3: That the NSW Government guarantees that it will not increase the rate of the parking space levy or expand the parking space levy to additional districts. All revenue raised from motorists through the parking space levy is deposited into a Public Transport Fund and is used to finance public transport services, construct and maintain parking facilities and to finance initiatives for the communication of information to commuters 14. According to Transport for NSW, projects financed by the parking space levy have improved Sydney s air quality, reduced traffic congestion and facilitated access to public transport NSW Treasury 2014, Budget Paper No. 2, Sydney, NSW 14 Parking Space Levy Act 2009 (NSW) 15 Transport for NSW 2014, Sydney, NSW, viewed 2 December 2014, < 10

12 Transport for NSW lists the Hurstville Bus Interchange, Transport Info , and Light Rail Inner West as significant projects that have been funded by substantial contributions from the Parking Space Levy 16. Other projects that motorists have helped finance through the parking space levy include upgrades and maintenance of bus, rail and ferry interchanges, bus priority lanes, bus shelters, river dredging, scoping studies and the development of a transport interchange database 17. The projects funded by levies imposed on Sydney motorists are consistent with the NSW Government s objective to discourage car use in leviable districts 18. Revenue from the parking space levy is also allocated to provide new or upgrading existing commuter car parking facilities. However it is noted that between 1996 and 2013, less than half of the transport infrastructure projects funded from the parking space levy were new or upgraded commuter car parking facilities 19. Figure 1.5 Breakdown of projects funded by the Parking Space Levy ( ) (Source: Transport for NSW) Commuter Car Parks 45% Other 55% With the lack of parking spaces at key transport hubs a key concern for commuters, the NSW Government must ensure that more of the revenue collected from motorists through the parking space levy is allocated to providing new commuter parking spaces. While the parking space levy seeks to discourage motorists and car usage, allocating revenue to ferry wharf upgrades and improved bus shelters does not provide motorists with an incentive to use public transport services. A fairer portion of revenue raised through the parking space levy ought to be reinvested back into commuter car parking facilities to give motorists a real choice between driving and catching public transport and to encourage increased usage of the public transport network. Recommendation 4: That a greater portion of revenue collected from the Parking Space Levy be reallocated into building new, or upgrading existing, commuter parking facilities at key transport interchanges. 16 Transport for NSW 2014, Sydney, NSW, viewed 2 December 2014, < 17 Transport for NSW 2013, Parking Space Levy: Completed Project Contributions, Sydney, NSW 18 Transport for NSW 2014, Sydney, NSW, viewed 2 December 2014, < 19 Transport for NSW 2013, Parking Space Levy: Completed Project Contributions, Sydney, NSW 11

13 Parking Innovation For many years, NRMA has called for the NSW Government to invest in new technology to address the shortage of parking in Greater Sydney. In February 2014, NRMA urged the NSW Government to engage with the private sector to develop innovative solutions using new technology to increase the number of commuter parking spaces at otherwise underutilised locations near key commuter hubs. The use of new technology has the potential to provide motorists with greater convenience and certainty by providing real time information about available on-street and commuter parking spaces. Not only can technology provide motorists with a greater experience, it can also help to reduce congestion on local roads and around key commuter hubs by removing the need for motorists to slow traffic down while trying to find an available parking space. On 25 November 2014, Infrastructure NSW released a revised State Infrastructure Strategy (SIS). The SIS recommended that Transport for NSW work with RMS to develop a program of initiatives to empower customers for potential investment from The SIS correctly states that customers can make better travel decisions if they are given accurate and real time travel information. Importantly, the SIS identifies the need for the provision of smart parking technologies that provide real time information about available parking spaces, making searches for parking easier 21. NRMA supports the NSW Government s commitment to adopt the recommendation of INSW to invest in innovative projects such as smart parking technologies to give motorists real time information about available parking spaces. It is important now for the NSW Government to invest in the right parking technologies and to also investigate what involvement the private sector can play to assist in the development of innovative parking technologies. Smart phone applications There is great potential for smart phone applications to improve the experience of motorists. Smart phone applications can help motorists better plan their journey by providing real-time information about available parking spaces. New technology like smart phone applications can not only make parking more convenient, but it can also help to significantly reduce congestion, particularly on local roads. In other jurisdictions across Australia, local authorities have realised the potential of smart phone applications and are actively encouraging the development of applications specific to enhancing the parking experience for motorists. In December 2014, the Brisbane City Council adopted recommendations proposed by the Brisbane Parking Taskforce to leverage new technological solutions such as applications and parking sensors to improve user experience Infrastructure NSW 2014, State Infrastructure Strategy: 2014 Update, Sydney NSW 21 Infrastructure NSW 2014, State Infrastructure Strategy: 2014 Update, Sydney NSW 22 Brisbane City Council 2014, Citywide on-street parking review, Brisbane, QLD 12

14 Brisbane City Council has indicated that by facilitating and supporting new technology, residents, visitors and commercial operators will find parking within the city less stressful because they will be able to access real-time information to pre-plan their parking 23. While a number of applications have been developed that aim to provide motorists with real-timeinformation about parking availability, there are endless opportunities for smart phone applications to be used for other purposes such as allowing for the pre-booking of spaces, the payment of meters and giving motorists reminders about the amount of time remaining on their parking meter. In late 2013, The Yarra Council in Melbourne began rolling out pay-by-phone technology across key shopping districts. A smart phone application was developed to give motorists the option to pay for parking via a smart phone application with their credit card, and gave motorists the option to top up their meter remotely. A text message can also be sent to remind motorists when their parking meter is due to expire. Manly Council in Sydney is also considering using smart phone applications to reduce congestion and make parking easier for motorists. The NSW Government and local councils across Greater Sydney should follow the lead of Brisbane City Council and invest in new smart phone technologies to help motorists more easily find available parking spaces and to help reduce congestion on local roads. Additionally, it is important that the NSW Government work closely with the private sector to develop new smart phone parking applications that provide real-time information about available parking spaces for motorists. Recommendation 5: That governments work with the private to sector develop innovative smart phone parking applications that make parking easier and reduce congestion, particularly on local roads. Peer to Peer Parking (P2P) Peer to Peer (P2P) parking applications can also play a role in transforming parking within Greater Sydney in the coming years. With the availability of parking diminishing and the costs associated with parking increasing, P2P parking is an innovative way to address the current parking crisis, particularly in and around the Sydney CBD. P2P parking applications can connect motorists with vacant or unused parking spaces by providing an avenue for residents to make their private off-street parking spaces available to motorists for short-term lease. It is noted that a number of P2P parking applications have already been developed and are currently being used by Sydney motorists. By allowing people to list their unused parking spaces for short-term lease, parking capacity in and around Sydney will increase, and pressures placed on current on-street parking will be reduced. 23 Brisbane City Council 2014, Citywide on-street parking review, Brisbane, QLD 13

15 Unlocking additional car spaces for motorists on the periphery of the CBD and around key commuter hubs may also help to reduce congestion within the CBD by giving motorists the opportunity to park their car in more convenient and more affordable locations prior to entering the CBD. P2P parking has the potential to increase the capacity of available parking spaces, particularly around key commuter hubs, at a fraction of the cost associated with building or upgrading commuter car parking facilities. Based on data provided by the NSW Government, it is estimated that the cost of providing additional commuter parking at Sydney rail stations can be as high as $123,000 for each individual space 24. Given the high costs associated with building additional commuter car parking facilities, it makes sense for the NSW Government to actively encourage P2P parking as a means of increasing parking capacity across NSW, particularly around key commuter hubs and on the periphery of the CBD. For P2P parking applications to become a viable option for motorists, the NSW Government must work closely with the private sector to ensure that businesses seeking to harness new technologies to provide additional parking capacity, at no cost to government, can operate and flourish in an environment free of bureaucratic red tape. This means that the parking space levy must not apply to residential or private car parks that are made available for short-term lease to motorists by private individuals. It is important that parking spaces offered through P2P applications are not subjected to additional state or local government rates, fees or charges. Private individuals offering their unused residential parking spaces to motorists for short-term lease through P2P applications should be supported and not financially penalised by planning or other unnecessary state or local government regulations or requirements. Every day there would be tens of thousands of empty spaces in household driveways. There should be no reason why these spaces could not be used to increase the stock of commuter car parking around key transport hubs. We have seen P2P schemes operate extremely successfully for all things from accommodation and car-sharing. A P2P parking solution that allows ordinary householders to offer unused parking spaces would be a major benefit to commuters and householders and could result in less congestion on our roads. It is imperative that government regulation does not stand in the way of such a simple and elegant innovative solution to the current shortage of available commuter car parking spaces. Recommendation 6: That the NSW Government encourages motorists to use peer to peer (P2P) parking applications as an alternative to on-street or commuter car parking. Parking Guidance Systems Parking guidance systems have been in use for many years, particularly in shopping centres and privately operated off-street parking garages. Parking guidance systems help motorists find parking spaces more easily by providing real-time information about available parking spaces. 24 NSW Government 2012, Getting on with the job: New car parks and interchanges for commuters, Sydney, NSW 14

16 Parking guidance systems detect real-time information about available parking spaces through a wireless magnetic detector or camera installed in each parking space. The data detected at each parking space is sent back to a central control unit and then forwarded to variable message signs (VMS) that indicate how many spaces are available in a particular car park. In addition to data being transmitted to VMS display boards in real-time, LED-based indicators are installed above each car space. The LED indicators interact with the wireless magnetic detector and change colour between red and green to reflect the availability of a parking space. Electronic display boards also indicate the direction of available parking spaces and the signage is updated in real-time. The City of Seattle in the USA has recently implemented an e-park program to help improve the information available to motorists to help find parking faster and to reduce congestion. e-park uses a parking guidance system to provide real-time information via VMS at key entrance points to the CBD about the location of available parking spaces across the city. While parking guidance systems in Australia are primarily used in shopping centres, there is scope to expand a similar system to on-street parking spaces and commuter parking facilities to provide motorists with real-time information about available parking spaces. The introduction of LED indicators could help traffic flow and reduce congestion, while at the same time supporting local business by helping motorists find available parking more quickly. Recommendation 7: That state and local governments consider installing parking guidance systems for on-street and commuter parking facilities to make finding a car park easier for motorists. 15

17 Parking Fine Revenue Over recent years local governments across Sydney and NSW have significantly increased the amount of revenue they receive each year from parking fines. In Greater Sydney, 41 local councils collected more than $143 million in fine revenue from motorists in 2013/14. This represents an increase of $11 million or 6 per cent in parking fine revenue since 2011/ Figure 1.6 Total Parking Fine Revenue collected by councils in Greater Sydney (Source: Office of State Revenue) $150,000,000 $145,000,000 $140,000,000 $135,000, / / /14 $130,000,000 $125,000,000 While there was a slight decrease in the total amount of revenue collected by local councils in Greater Sydney between 2013/14 and 2012/13, a majority of local councils recorded increases in parking fine revenue over the same period 26. The largest rises occurred in Marrickville, Rockdale, Hawkesbury, Ashfield and Campbelltown, with all five councils increasing revenue from parking fines by 25 per cent or more in 2013/14. Additionally, Canterbury, Mosman, Burwood, Ku-ring-gai and Pittwater councils collected more than 10 per cent in additional revenue over the same period. Top 10 Parking Fine Revenue Increases Greater Sydney LGAs Ranking LGA 2013/ /13 % 1 Marrickville $ 5,354,426 $ 3,348,066 37% 2 Rockdale $ 2,653,312 $ 1,814,842 32% 3 Hawkesbury $ 670,106 $ 468,456 30% 4 Ashfield $ 1,519,429 $ 1,115,984 27% 5 Campbelltown $ 710,637 $ 529,029 26% 6 Canterbury $ 1,597,597 $ 1,191,827 25% 7 Mosman $ 2,286,117 $ 1,754,296 23% 8 Burwood $ 3,153,300 $ 2,619,301 17% 9 Ku-ring-gai $ 1,916,162 $ 1,668,288 13% 10 Pittwater $ 2,866,648 $ 2,591,939 10% 25 The Office of State Revenue 2014, Sydney, NSW, viewed on 4 December 2014 < 26 The Office of State Revenue 2014, Sydney, NSW, viewed on 4 December 2014 < 16

18 In 2013/14, 32 out of 41 local councils in Greater Sydney collected more than $1 million in parking fine revenue, with the City of Sydney collecting more than $35 million in revenue from Sydney motorists over the period. LGAs with more than $1 million in Parking Fine Revenue Ranking LGA $ 1 City of Sydney $ 35,900,864 2 Waverley $ 10,558,229 3 North Sydney $ 7,144,342 4 Woollahra $ 5,952,831 5 Marrickville $ 5,354,426 6 Fairfield $ 4,831,308 7 Sutherland $ 4,622,980 8 Ryde $ 4,554,817 9 Willoughby $ 4,455, Randwick $ 4,194, Leichhardt $ 4,157, Parramatta $ 3,970, Canada Bay $ 3,282, Burwood $ 3,153, Bankstown $ 2,972, Pittwater $ 2,866, Manly $ 2,699, Rockdale $ 2,653, Warringah $ 2,574, Blacktown $ 2,460, Kogarah $ 2,453, Hurstville $ 2,291, Mosman $ 2,286, Ku-ring-gai $ 1,916, Hornsby $ 1,914, Auburn $ 1,700, Canterbury $ 1,597, Holroyd $ 1,554, Ashfield $ 1,519, Lane Cove $ 1,192, Liverpool $ 1,109, Penrith $ 1,088,477 The surge in parking fine revenue is not limited to Greater Sydney, with increases also occurring in regional and rural areas of NSW. In 2013/14, councils in regional and rural NSW collected more than $17 million. This figure is an increase of almost $2 million or 7 per cent since 2011/ In 2013/14, large increases in revenue were recorded by Byron Shire Council and Gosford City Council. 27 The Office of State Revenue 2014, Sydney, NSW, viewed on 4 December 2014 < 17

19 Figure 1.7 Total Parking Fine Revenue collected by councils in Rural/Regional NSW (Source: Office of State Revenue) $19,000,000 $18,500,000 $18,000,000 $17,500,000 $17,000,000 $16,500,000 $16,000,000 $15,500, / / /14 In 2013/14, 5 local councils in rural and regional NSW generated more than $1 million in parking fine revenue, with Newcastle City Council raising more than $3 million from motorists through parking infringements. Top 10 Rural & Regional LGA Parking Fine Revenue Ranking LGA $ 1 Newcastle $ 3,492,227 2 Wollongong $ 2,475,510 3 Byron $ 1,378,944 4 Gosford $ 1,200,049 5 Wagga Wagga $ 1,020,738 6 Shoalhaven $ 813,936 7 Tweed $ 548,442 8 Port Macquarie $ 533,349 9 Lake Macquarie $ 527, Tamworth $ 458,587 In addition to parking fine revenue received by local councils, NSW Government Authorities and Statutory Bodies, including the NSW Police, the Royal Botanic Gardens & Domain Trust, local health districts and universities, issued more than $16 million in parking fines in 2013/14 - an increase of $3 million or 28 per cent since 2011/12. Hypothecation of parking fine revenue More than $177 million in parking fine revenue was collected from motorists through parking fines in 2013/14, with $164 million of this total raised by local councils. Currently there is no legislative or administrative requirement for local councils to reinvest revenue collected from parking fines back into local road infrastructure improvements. 18

20 A recent NRMA report found that local councils across NSW require $3.9 billion to bring local roads up to a satisfactory condition 28. It is estimated that rural and regional roads require $3 billion to adequately repair local roads, with councils in Greater Sydney requiring around $910 million. The current backlog in local road maintenance could have significant safety repercussions for NSW motorists. Between 2008 and 2012, there were 1322 fatalities and people injured on roads managed by local councils in NSW. NRMA has estimated that fatalities and injuries on local roads cost regional communities almost $10 billion over the five year period between 2008 and With a total economic cost to communities averaging $2 billion per year there is an urgent need to address safety standards on local roads. It is acknowledged that many Local Government Authorities (LGAs) across NSW are cash-strapped with revenue streams continuing to dry up. As a result, local councils are not always in a financial position to adequately maintain existing road infrastructure to a satisfactory standard, particularly where federal and state funding assistance for local roads is insufficient. However, a shortfall in revenue must not be addressed by unfairly targeting motorists as cash-cows. All parking fines are paid by motorists to the State Debt Recovery Office (SDRO) within the Office of State Revenue (OSR). Once a fine is paid, the revenue is transferred from the OSR to the relevant local government authority, i.e. the authority that issued the original parking infringement. There is no direct link between parking fine revenue collected by local councils and expenditure on local roads and councils are not obliged to reinvest parking fine revenue back into local roads. This can result in revenue collected from motorists being used for other purposes, including boosting the budget bottom line. To help address the backlog in local road funding, it is proposed that the NSW Government introduce legislation requiring local councils to hypothecate all revenue raised from parking fines. The revenue would be hypothecated into special Local Road Upgrade Funds and used by each council to finance maintenance works or upgrades to their local road networks. Local Road Upgrade Funds would operate much like the Community Road Safety Fund, established by the NSW Government in 2012 at the suggestion of the NRMA, whereby all revenue raised from speed camera offences is hypothecated and used to fund road safety programs. Following the establishment of the Community Road Safety Fund, the NSW Government allocated more than $240 million into road safety in the 2014/15 State Budget. Had Local Road Upgrade Funds been established in 2011/12 requiring parking fine revenue to be hypothecated back into local road networks, more than $475 million could have been reinvested back into local roads across NSW over the three year period between 2011/12 and 2013/ The National Roads & Motorists Association 2014, Funding Local Roads, Sydney, NSW 19

21 While the hypothecation of parking fine revenue will not completely reduce the $3.9 billion backlog in local road funding, it has the potential to ensure local councils can make significant improvements to the quality and safety of local road networks. Recommendation 8: That the NSW Government considers introducing legislation that requires local councils to hypothecate parking fine revenue into Local Road Upgrade Funds. Independent reviews of parking fine infringement notices As noted above, while local government authorities issue parking infringement notices, the administration of the infringement notices and collection of revenue is undertaken by the State Debt Recovery Office (SDRO) within the Office of State Revenue (OSR). This process seeks to provide a consistent approach to the administration of parking infringement notices and revenue across NSW. It is noted that a majority of local councils across NSW employ a hands-off approach to parking fines once an infringement notice is first issued, leaving the SDRO responsible for handling all queries and reviews of parking infringement notices and fines. For many motorists, requesting the SDRO to review a parking infringement notice can be a stressful and frustrating experience. This is not a reflection on the SDRO and its staff, but may be a result of the perceived bureaucratic processes that are required to be followed when requesting a review of a parking infringement notice. Given the substantial volume of reviews of parking fines requested by motorists each year, the SDRO are not necessarily in a position to spend a significant amount of time on each request. As a result, requests for review are considered in a procedural manner which can frustrate motorists who may believe that their individual circumstances are not adequately considered or addressed by the SDRO. Granted, there is an option for motorists to request to have a penalty decided in court, however for many motorists this is not a practical option. To provide motorists with a more convenient process for reviewing parking fines, local councils could consider implementing review processes independent of the SDRO. Currently, only two councils in the Greater Sydney Region Parramatta City Council and Hurstville City Council, have mechanisms for motorists to request reviews independent of the SDRO. In 2011, Parramatta City Council implemented an internal review process for parking fines received by ratepayers. A motorist who has been issued with a parking fine may make a request to Parramatta City Council for the infringement to be reviewed by an independent Adjudication Panel. The Adjudication Panel consists of three people made up of two people independent of Parramatta City Council and a person who is a member of the Parramatta City Council staff, holding a position of Manager or higher. Since Parramatta City Council introduced the internal review process in 2011, parking fine revenue collected by the Council between 2011/12 and 2013/14 was reduced by 35 per cent. 20

22 Additionally, In 2011 Hurstville City Council set up a Commonsense Parking Panel as a means for motorists to appeal parking infringement notices that they believed were issued in error. Motorists are able to submit an application to Hurstville City Council for review by a review panel that consists of three non-paid community members and three council officers. Following the lodgement of a review, Hurstville City Council contact the SDRO to advise that an appeal has been lodged and request for the due date of the fine to be extended until the review panel has considered the application. Given that local councils in Greater Sydney collected more than $143 million in parking fine revenue from motorists in 2013/14, it is essential that appropriate systems be put in place to ensure that motorists have appropriate and convenient avenues to appeal against fines. NRMA proposes that local councils that collect more than $1 million in fine revenue each financial year be required to establish independent parking fine review panels, similar to those currently used by Parramatta City Council and Hurstville City Council. Recommendation 9: That LGAs collecting more than $1 million in revenue per annum from parking fines be required to establish independent parking fine review panels. 21

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24 Government Relations and Public Policy The National Roads & Motorists Association (NRMA) PO Box 1026 STRATHFIELD NSW 2135 T: (02) E: 23