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Parking Levy Hike - Another Announcement Without Analysis
Monday, 05 October 2009

The Rees Government has argued it needed to significantly increase the parking levy to reduce traffic congestion in CBD centres, however FOI documents reveal no research was done to substantiate that claim, Shadow Treasurer Mike Baird said today.

“Here is another example of the Rees Labor Government’s culture of looking for headlines or revenue while pretending it is implementing good policy,” said Mr Baird.

Treasury documents obtained by the NSW Liberal & Nationals have revealed “little research” was done into the “effectiveness of the PSL [Parking Space Levy]*, which was almost doubled by the Rees Labor Government in last year’s Mini Budget.

“The approach to budgeting and finance by NSW Labor has clearly been to raise revenue wherever they can and find a reason later,” Mr Baird said.

“It’s back of the envelope stuff from an incompetent Labor Government. In terms of strategic thought about the impact of the levy on congestion, there’s been absolutely none.

"Eric Roozendaal agreed to almost double the levy without considering whether public transport could cope or indeed whether the increase would have any effect.

"As cities around the world cope with the challenges of peak oil and rising congestion through considered policies, the Rees Labor Government takes the revenue and runs.

"The parking levy was introduced without any consultation of industries impacted and now it is revealed it was done without any analysis.

“It is another example of the State Labor Government’s failure and incompetence and certainly casts further doubt on how financial decisions are made in this State.”

The Rees Labor Government is expected to collect an additional $50 million from the increase in the parking space levy this financial year.

"We call on Eric Roozendaal to undertake the required analysis to determine the impact of the levy on traffic flows and demand for public transport.

“The Treasurer must transparently reveal how funds his Government receives from the levy are improving public transport and not just going back into general revenue,” he said.

MEDIA: Lisa Harrington - 0406 726 880 

* Email from senior official at NSW Treasury dated 18/11/2008 – one week after the levy increase was announced in the Mini Budget.

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Comments (4)
RSS comments
Parking Levy hike
It's been in place in London for the last 6 years - see http://www.bbc.co.uk/london/content/articles/2006/11/21/congestion 
_update_feature.shtml - and has to be at least an each way bet that it is good policy. Are you saying that the public servants that would possibly still be working in Treasury if the Liberals were in power don't know what they are doing? I'd rather be presented with all the facts for and against, than see you use this just as a dig against your political opponents.
Posted by: Deborah Mosman at 06-10-2009 14:27
response to Deborah
Hi Deborah, thanks for your comments - we agree with the levy, the Lib/Nats introduced it in 1992 to discourage car use. The question is whether it needed to increase from $950 to $2000 per car spot, per year. If the Govt is going to collect another $50 million in taxes they should be able to demonstrate the benefit to taxpayers! 
Cheers, Mike
Posted by: Mike Baird at 06-10-2009 14:19
Parking Levy......
Come on Rees get a real job you're going to be good at, you're obviously not good at this one. I have a friend who needs shelves stocked, could you handle that? Cheers Debra.
Posted by: Debra Arena at 07-10-2009 06:28
parking levy
Increasing city parking levy taxes to cut congestion could only work if there were genuine public transport options for people like us in Seaforth, for example. We have tried the buses (there's one an hour to the city during the day!) and there's nothing else. You'll have to vastly improve public transport before asking people to use it Mr Roozendaal.
Posted by: Andrew Urban at 07-10-2009 08:29