Media Release: CITY CAR PARKING LEVY TO EASE CONGESTION

FROM THE OFFICE OF THE PREMIER, OFFICE OF THE TREASURER

DATE: Friday, April 22, 2005

CITY CAR PARKING LEVY TO EASE CONGESTION

Shoppers and visitors to Melbourne will be the major beneficiaries of a new Long Stay Car Park Levy, which is expected to reduce congestion and create thousands of new off-street short stay car parking spaces, Acting Premier John Thwaites and Treasurer John Brumby said today.

Mr Thwaites said the new levy would be charged to the owners of the CBD’s private and commercial car parks, and would apply to their designated long-stay and permanently leased parking spaces.

“Melbourne is one of the world’s most liveable cities, but it won’t stay that way unless we do something to ease peak hour congestion and make it easier to get around the CBD,” he said.

The levy will apply from January 1, 2006 and be $400 a year per long-term parking space rising to $800 in the second year, generating $19 million in 2005-06 and $38.5 million in 2006-07.

Mr Thwaites said Melbourne City Council would receive $5 million a year from the new levy to fund urban and transport improvements in the CBD.

“Melbourne City Council and the Government will work together to make sure Melbourne remains an attractive place to work, live and visit,’’ he said.

“The revenue raised by this levy will be directed towards other transport initiatives across Melbourne, to be detailed in the upcoming State Budget, including improvements to bus and rail services and the metropolitan roads program.

Lord Mayor John So said the City of Melbourne would use part of the revenue to introduce a free shuttle bus service for commuters and tourists in the CBD to complement the existing tram, bus and train services.

“This initiative will sustain the continued growth and prosperity of Melbourne,’’ he said.

Around 48,000 of the 70,000 off-street car park spaces in the CBD are estimated to be permanent or long stay car spaces and leased to private companies or individuals and will now attract the levy.

Car park owners will be asked to provide an annual return and nominate the number of spaces available for short-term parking. This will be backed up by periodic inspections.

Mr Thwaites said the new levy would act as an incentive to car park owners to convert long-stay spaces which attract the levy into short-stay spaces, creating more parking options for shoppers and visitors.

“It will also encourage commuters who park in the city all day to look at other options, like car pooling and public transport, which will cut pollution and greenhouse gas emissions,” he said.

The City of Melbourne will look at measures to:
·Expand and improve the parking guidance system for short-term parking
·Increase capital works to improve pedestrian, bike and public transport access to the CBD
·Work with parking operators to encourage the conversion of long-term car spaces into short-term spots.

Treasurer John Brumby said that traffic congestion in the CBD represented an increasing challenge to Melbourne’s economic prosperity.

“The Bureau of Transport Economics recently estimated that congestion costs the city of Melbourne around $2.7 billion a year - a major burden on business,” Mr Brumby said.

“Congestion is a worldwide problem and one that governments everywhere are working to tackle.

“The new measure is necessary to reduce peak congestion and at the same time encourage further investment in short stay off street parking making sure Melbourne’s CBD remains a dynamic and vibrant area,’’ he said.

“This levy is something environment groups as well as the Business Council of Australia have advocated for some time and is similar to city parking levies applied in Sydney, Perth and proposed for Canberra,’’ he said.

Short stay car parking spaces will not be affected by the levy while other exemptions will include:
·On-street parking, residential parking and bicycle and motorbike parking
·Disabled car parking spaces
·Loading zones
·Parking spaces without charge owned by local councils, religious bodies/organisations, hospitals, charities and public benevolent institutions, universities, museums and libraries
·Parking spaces without charge used by ambulance, fire brigade and police motor vehicles
·Temporary car parking spaces used for events such as MCG parkland
·Car sales display spaces and car service spaces.

The levy will apply within a boundary that includes the CBD grid and adjacent highly congested areas such as Southbank, Docklands and St Kilda Road precincts.