Accounting for successful enforcement COLIN BUCHANAN
Enforcement conference
PCNs <ul><li>In London 4.7m parking PCNs issued </li></ul><ul><li>Police and traffic wardens issued 400k </li></ul><ul><li...
Why do you manage parking? <ul><li>safety </li></ul><ul><li>excess demand </li></ul><ul><li>conflicting demand </li></ul><...
Safety <ul><li>Accidents caused by parked cars </li></ul><ul><ul><li>3% deaths </li></ul></ul><ul><ul><li>5% all road acci...
Excess demand <ul><li>If people cannot park they cannot spend money in your town </li></ul><ul><li>Parking controls should...
Conflicting demands <ul><li>commuters’ cars parked </li></ul><ul><ul><li>1.6m on-street </li></ul></ul><ul><ul><li>0.5m in...
Parking permits <ul><li>How much too charge? </li></ul><ul><li>Should it vary by </li></ul><ul><ul><li>Location </li></ul>...
Raise revenue <ul><li>Local government generated £1.3bn gross from parking - £0.4bn net </li></ul><ul><li>Of total London ...
Closed shops and double yellow lines – are they related
Shopping and parking <ul><li>For town centre shopping parking is not as important as for food shopping </li></ul><ul><li>S...
Congestion <ul><li>Urban congestion costs £10bn </li></ul><ul><li>Cruising for parking  </li></ul><ul><ul><li>“ My father ...
Climate change <ul><li>Emissions from urban traffic cost £3bn </li></ul><ul><li>Emissions based parking tariffs </li></ul>
Hijacking of public space
Upcoming SlideShare
Loading in …5
×

Parking: economics of enforcement

996 views
963 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
996
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Good morning In deciding whether to sign up for today’s conference I wonder how many of you flicked through the programme and thought Drivers Charter – TfL sounds interesting Fighting fraud – yes definitely need to hear about that Use of CCTV and ANPR – certainly could learn from that School gate parking – as a school governor with serious issues in this – I would sign up Then you saw an economist down to speak – and I sure that persuaded on you spot that you had to come Or sadly and perhaps more realistically you possibly thought doesn’t matter if I’m late getting there as what on earth as an economist got to do with parking enforcement. Economics is all about ensuring the right allocation of scarce resources – what could be more in tune with the present “Age of austerity “
  • Parking and its enforcement is a large and important business – some 9m PCNs issued in a year Almost a fifth of all car drivers get at least one a year – increasing to a third of 16-34 yr olds
  • So why do we manage parking and issue 9m PCNs a year – other than the motoring public’s inability to park correctly I’m sure you can add to the list – which seems to get ever longer with tackling climate change being a recent addition to all the other factors those in the parking industry need to think off when setting enforcement policies. What would happen if we didn’t enforce parking
  • Sadly far to many motorists are to selfish or idol to consider other people when they pull up a zebra’s zig zag or those double yellow lines they feel are just there because the council wanted to use up some spare yellow paint. While these figures reflect accidents caused by both stationary and parked cars and are therefore a slight over estimate of the cost of unsafe parking it is still a frightening figure that they cause nearly 100 deaths a year. So even with enforcement unsafe parking costs the economy around £600m a year – providing a clear rationale for enforcement
  • There is a considerable and on-going debate about the price of parking and the “need” for free or cheap parking to attract the punters in. But if people cant park then they don’t come in the first place – or they turn up cant find a space and head off home again disappointed RAC Foundation research found that over 40% of car owners had abandoned a trip due to lack of parking Drive into most major cities and you immediately see the problem – a lack of parking spaces Anyone here from Westminster? Westminster probably has one of the most sophisticated parking policies – but even here highest price for on-street parking is £4.40 an hour and its free on Sundays compared to £5-8 for private off street car parks Why give shop workers free all day parking while your customers can’t park From an economic perspective the ideal is flexible pricing by time of day/ day of week and location – at a price that ensures that around 15% of spaces are free
  • For local authorities a key problem arises from the pressure they are under to prioritise competing demands for parking space Key pressures are between residents and commuters/shoppers and in town centres between commuters and shoppers On any weekday some 1.6m commuters’ cars are parked on street often in direct competition with other users – and we know that commuters are prepared to walk 20mins+ to benefit from free parking – pushing the problem deep into residential areas The result is 1.2m households live in areas where they require a permit to park their car on the road Another 0.5m commuters’ cars are parking in public car parks often in competition with shoppers and other visitors While at the end of day some 7m cars are parked on street – often because we are using our garages for other purposes
  • So councils use parking permits to prioritise demand in residential areas and this is where things start to get tricky Is this a business that the council is operating with the aim of generating revenue or a service to its residents Few councils seem to be clear – suggesting that a residential controlled parking zone should aim to be revenue neutral was met with amazement in one local authority recently So councils try to get there parking permit policy be all things to all people – It should be market based so price varies by location in line with private parking charges No everyone should be treated equally no matter where they live so single price across the council – whisper it quietly but one council doesn’t charge for its permits Climate change means we are trying to get people to use lower emission vehicle so lets charge by emission band – interestingly an idea taken up by each of the 3 main parties We should be trying to reduce car ownership so only one permit per household – ah a way of increasing revenue lets charge more for additional cars We should be supporting local business so provide them with permits – why should commercial operators get cheap parking charge them full commercial rates Are we treating everyone fairly – exemptions for all – health visitors, ministers of religion to members of the local bowling club and MPs Parking permits reflect an estimated £1bn subsidy to motorists
  • In 2008-9 English councils generated £1.3bn from parking – in net terms around £350m But London is responsible for almost half of that revenue (both gross and net) And nearly a third of net revenue was generated by just five boroughs – for Westminster parking revenue is broadly the same as it collects from the council tax For the rest of England parking is not a cash cow – in fact 100 English authorities lost money on parking – some £60m So why subsidise parking
  • some 7m cars are parked on street – often because we are using our garages for other purposes £60k parking space in St Ives London 20K standard – up to £80k not exceptional Rent 2500-6000k Manchester suburbs £600 – central £1200
  • Parking: economics of enforcement

    1. 1. Accounting for successful enforcement COLIN BUCHANAN
    2. 2. Enforcement conference
    3. 3. PCNs <ul><li>In London 4.7m parking PCNs issued </li></ul><ul><li>Police and traffic wardens issued 400k </li></ul><ul><li>Parking enforcement officers outside London issued 3.8m PCNs </li></ul><ul><li>In England 18% of car drivers received a PCN last year </li></ul><ul><li>32% of 16 to 34 year-olds had </li></ul>
    4. 4. Why do you manage parking? <ul><li>safety </li></ul><ul><li>excess demand </li></ul><ul><li>conflicting demand </li></ul><ul><li>raise revenue </li></ul><ul><li>attract visitors/ shoppers </li></ul><ul><li>reduce congestion </li></ul><ul><li>tackle climate change </li></ul>
    5. 5. Safety <ul><li>Accidents caused by parked cars </li></ul><ul><ul><li>3% deaths </li></ul></ul><ul><ul><li>5% all road accidents </li></ul></ul><ul><li>Economic cost £600m </li></ul><ul><li>Clear rationale for enforcement </li></ul>
    6. 6. Excess demand <ul><li>If people cannot park they cannot spend money in your town </li></ul><ul><li>Parking controls should be aimed at always providing a parking space </li></ul><ul><li>But parking demand varies by time of day and day of week </li></ul>
    7. 7. Conflicting demands <ul><li>commuters’ cars parked </li></ul><ul><ul><li>1.6m on-street </li></ul></ul><ul><ul><li>0.5m in public car parks </li></ul></ul><ul><li>lost retail revenue £1bn+? </li></ul><ul><li>clear economic rationale for intervening </li></ul>
    8. 8. Parking permits <ul><li>How much too charge? </li></ul><ul><li>Should it vary by </li></ul><ul><ul><li>Location </li></ul></ul><ul><ul><li>Engine size </li></ul></ul><ul><ul><li>Number of cars </li></ul></ul><ul><ul><li>Commercial or private </li></ul></ul><ul><li>What exemptions should apply </li></ul>
    9. 9. Raise revenue <ul><li>Local government generated £1.3bn gross from parking - £0.4bn net </li></ul><ul><li>Of total London generates around half gross and third net </li></ul><ul><li>almost 100 local authorities lost money £60m between them on parking in 2008/09 </li></ul><ul><li>raising parking revenues by 15% would increase net revenues by 50% </li></ul><ul><li>Improving revenue to average cost ratios would increase net revenue by £150m </li></ul>
    10. 10. Closed shops and double yellow lines – are they related
    11. 11. Shopping and parking <ul><li>For town centre shopping parking is not as important as for food shopping </li></ul><ul><li>Strength of retail offer is key draw not availability of parking </li></ul>
    12. 12. Congestion <ul><li>Urban congestion costs £10bn </li></ul><ul><li>Cruising for parking </li></ul><ul><ul><li>“ My father didn’t pay for parking, my mother, my brother, nobody. It’s like going to a prostitute. Why should I pay when, if I apply myself, maybe I can get it for free?” George Costanza </li></ul></ul><ul><li>average time to find a curb space 8mins & 30% cars cruising for parking </li></ul><ul><li>Clear economic rationale for intervention </li></ul>
    13. 13. Climate change <ul><li>Emissions from urban traffic cost £3bn </li></ul><ul><li>Emissions based parking tariffs </li></ul>
    14. 14. Hijacking of public space

    ×