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- 4 May 2000
Parking Space Levy Amendment Bill
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About this Item
Speakers - Scully Mr Carl
Business - Bill, Report, Second Reading
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Page: 5341
Bill introduced and read a first time.
Second Reading
Mr SCULLY (Smithfield—Minister for Transport, and Minister for Roads) [2.15 p.m.]: I move:
That this bill be now read a second time.
The Parking Space Levy Bill 1992 was introduced with general cross-party support. The purpose of the bill was to discourage car use in business districts by imposing a levy on off-street commercial and office parking spaces, including parking spaces in parking stations. The revenue collected from the levy was to be used to finance the development of infrastructure to encourage the use of public transport to and from those districts. In the second reading speech on the Parking Space Levy Bill in this House on 7 May 1992 the then Minister for Transport, Mr Bruce Baird, said:
Road users need to be made aware of the external costs which they impose and are now being asked to contribute to the cost of providing transport systems.
The Minister said further:
It balances, in an equitable way, the need to encourage the sensible use of motor vehicles with the need to build on other measures already taken by the Government to enhance Sydney's public transport system.
This legislation proposed by the Government supports those sentiments of the former Minister for Transport. Since the levy's introduction in 1992 it has been applied to the Sydney and North Sydney-Milsons Point business districts. The current levy is $400 per single car space per annum, and this revenue is paid into the Public Transport Facilities Fund. Under the legislation the Public Transport Facilities Fund can only be utilised for the construction and maintenance of car and bicycle parking facilities and other infrastructure that facilitates access to public transport services to and from levy areas, and for the provision of public transport services.
By 30 June 2000 there will have been $87 million of improvements to public transport as a result of this levy. They include commuter car parks such as those at Meadowbank, Minto, Padstow and Cabramatta; bicycle facilities; bus-rail interchanges, including those at Hurstville, Liverpool, Ashfield and Woy Woy; ferry wharves and light rail. When introducing the 1992 legislation the then Minister for Transport informed the Parliament that initially the levy would be directed to improving commuter car parking at major suburban railway stations and to building bike storage facilities at stations. That is what occurred, and the uses to which the levy is allocated have widened to other transport facilities that match the requirements specified in the legislation.
The importance of public transport improvement projects undertaken with the levy funds has increased markedly since 1992 as attention is focused on public transport as a key means to improving the environment and air quality in particular. The levy is considered a very small component of the cost of car parking in the areas it covers and makes an important contribution to minimising congestion on the roads. The funds raised through the levy make an important contribution to providing facilities for regular commuters and encourage the use of public transport. The original legislation provided for the levy to be extended to new areas by regulation. It was envisaged that if the approach in the Sydney and North Sydney business districts was successful the levy would be extended.
In February this year the New South Wales Public Transport Authority released a discussion paper that proposed extending the levy to Chatswood, St Leonards-Crows Nest, Parramatta and Bondi Junction. Refinements to the legislation were also proposed by the Public Transport Authority to allow differential levy rates in the new areas, as compared to Sydney and North Sydney. It was proposed that the levy rate be increased to $800 per annum in the central business district [CBD] and North Sydney-Milsons Point area but be set at $400 in the proposed new areas. It was also proposed by the Public Transport Authority that the legislation be amended to allow more timely collection of the levy where it is extended to new areas.
The increase in the levy in the Sydney and North Sydney business districts was proposed to assist in meeting the increased cost to the State Government of providing transport services and associated infrastructure for commuters coming into these areas each day. The levy was originally applied to the Sydney CBD and North Sydney-Milsons Point area, because they were identified as the major commercial and business centres in the urban area. However, Sydney has grown and changed significantly since 1992.
New commercial centres have emerged that are themselves facing similar issues of traffic congestion. The Public Transport Authority proposal indicated that the new areas of Parramatta, Bondi Junction, St Leonards and Chatswood also satisfy the criteria of high-density commercial activity, considerable traffic congestion and the availability of adequate public transport as an alternative to private vehicle use. There is also a recognition that the proposed new areas are benefiting, and are set to benefit, from major public transport improvements being undertaken by the Government, including the Parramatta Rail Link, the Liverpool-Parramatta transitway, Chatswood station upgrade, Bondi Junction bus-rail interchange and St Leonards station upgrade. It is appropriate that an incentive be established in these areas to encourage greater public transport use as they develop further as business districts.
Since the release of the discussion paper the Public Transport Authority received submissions from the public and interested groups and provided advice to the Government. The work by the Public Transport Authority, and specifically its chair, Ms Antionette le Marchant, has been useful in ensuring that all issues and concerns of parties affected are fully considered—in particular, the different characteristic of business centres other than the Sydney and North Sydney areas. Overall support for the proposal was received from key interest groups throughout the community including the Bus and Coach Association, Lane Cove Council, the Total Environment Centre and the Council of Social Service of New South Wales.
A key concern raised in response to the discussion paper was the application of the levy to retail car parking in each of the new areas. All the proposed new areas have major shopping centres that provide free shopper parking. A large proportion of the retail in these areas—unlike the Sydney CBD—is weekly trade in consumer products such as groceries. These products can be difficult to carry on public transport. In practice the shopping centres argued that they would retain free parking if the levy was applied but would pass on the cost to retailers. This meant that the impact of the levy would be on retail prices rather than directly on the car user. As a result, the aim of reducing car use would not be achieved but there would be an increase in consumer prices at a time when the Commonwealth Government is also introducing the goods and services tax.
The Public Transport Authority fully appreciated this concern and recommended to the Government that the levy in the new areas should not apply to retail car spaces in the proposed new areas. This advice has been accepted by the Government. Given that similar issues apply to other car spaces provided for customers, the Government has decided that exemptions should be provided in the new areas of Parramatta, Bondi Junction, St Leonards and Chatswood for car spaces for guests or customers of a hotel or motel, members or guests of a registered club—for example, RSL clubs—customers of restaurants, patients of medical centres, customers of car yards et cetera, and clients of funeral parlours.
The approach for the new areas of Parramatta, Chatswood, St Leonards and Bondi Junction will be to apply a levy of $400 to parking stations and office parking spaces only. This relates to the majority of the car spaces in the new areas and it is the regular commuter market that needs to be encouraged more to use public transport. Apart from the proposed increase in the levy, it is not proposed that the categories of eligible parking spaces in the Sydney CBD and North Sydney-Milsons Point areas be amended. It is considered that there is little, if any, free customer parking provided in these areas. There also exists a different retail-business profile, greater traffic congestion and more developed public transport structure. The arrangements established in 1992 are settled and working well.
I turn to the specific provisions of the bill. The proposed amendments provide for two categories of area under the Act—category 1 and category 2 areas. The city of Sydney and North Sydney business districts, the areas currently subject to the Act, are defined by the Act and prescribed by the regulations as category 1 areas. The levy in relation to parking spaces on premises in category 1 areas is increased from $400 to $800 per space per year. Certain areas in Bondi Junction, Chatswood, Parramatta and St Leonards are prescribed by the regulations as category 2 areas and the levy amount for these areas is set at $400 per annum. Provision is made for exemptions in the new category 2 areas. Existing exemptions and a provision to further exempt by regulation are not affected. Other amendments are of a savings, transitional or consequential nature. The provision made in new section 6A essentially mirrors transitional provisions included in the original Act. The overall effect of the section is to ensure that when new areas are prescribed the levy is payable in a timely period.
In introducing this legislation the Government is making an important step towards addressing the quality of Sydney’s air and encouraging greater use of public transport. The funds raised by the extended levy will be used to progress key transport infrastructure projects that are already under way. They include the Engadine bus and rail interchange, the Rockdale bus and rail interchange and car park, the Mount Druitt bus and rail interchange, the Kogarah car park, the Holsworthy car park, the Lilyfield light rail extension, and the Liverpool-Parramatta transitway bus stations and stops. Under the legislation the Government will continue to be required to use all funds raised by the levy to provide for the construction and maintenance of infrastructure that improves access to public transport. I would like to thank the New South Wales Public Transport Authority and its chair, Ms Antionette le Marchant, for their work on this project. I also thank all members of the community and interest groups who took part in the debate on this issue. I commend the bill to the House. I seek leave to table the maps of category 1 and category 2 areas referred to in my second reading speech.
Leave granted.
Documents tabled.
Debate adjourned on motion by Mr O'Farrell.
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