Protection of Freedoms Bill

Diana Johnson Excerpts

Monday 10th October 2011 Commons Chamber

Brought up, and read the First time.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dawn Primarolo)]

With this it will be convenient to discuss Government amendments 21, 76, 39 to 54, 77, 55 to 61, and 78 and 62.

[Diana Johnson]

The Bill sets out in chapter 2 to outlaw wheel-clamping on private land and to introduce a ticketing regime. We had an extensive debate on this issue in Committee. The major concern that still arises from the way the Bill is drafted is that there is nothing to offer any regulation or protection for the motorist from the problems experienced so far with rogue wheel-clampers. We believe that the rogue wheel-clampers will now move on and become rogue ticketers, and we are not alone in this. We have the support of the RAC, the AA, and the British Parking Association—and I am very pleased to say that today a leader in The Times supports Labour’s amendment on this point.

Our new clause seeks to offer a level of sensible protection for those parking on private land equivalent to the protections offered to people who park on the highway and wish to appeal when they have received a parking fine. For many of our constituents, it is bewildering that the law in each situation is so different. If someone parks on the highway, there is a limit on the fines and an independent appeals process, but if they park in a small private car park, or even a large retail car park, they can face unlimited fines and there is no formal regulated appeals system.

The real reason we need to move this amendment and have this debate is that the coalition Government rushed into the decision to get rid of wheel-clamping, and they did not go through any meaningful consultation with key stakeholders to discuss what the effect of removing wheel-clamping as something that a private landowner could use to protect their land. When the previous Government considered how to deal with rogue wheel-clampers and set out provisions in the Crime and Security Act 2010, those provisions were widely consulted on. Issues that had to be addressed concerned signage, the level of fees that should be paid, the methods available for payment, the evidence required and a full appeals process. They were set out fully in the drafting of the 2010 Act in order to deal with rogue wheel clampers, because it was recognised that regulation was required.

The Government have decided to introduce a ban on wheel clamping on private land, but they have failed to address the real issue now facing motorists, which is what happens when they are faced with rogue ticketers. In this regard, as in so many others, the Government have reacted in a knee-jerk fashion without really thinking through the consequences of the legislation they are bringing before the House.

[Jeremy Corbyn (Islington North) (Lab)]

Does my hon. Friend have any view on unadopted private roads in areas where there is a local authority parking scheme all around and where quite successful operations are currently run, with minimal levels of clamping? From now on clamping will be banned, so far more expensive systems will have to be introduced, which will cost residents a great deal of money—including council and social housing tenants in the area—but achieve nothing different from what exists now.

[Diana Johnson]

My hon. Friend makes an important point. That issue was debated in Committee, but unfortunately the Government set their face against dealing with it and recognising that there was a problem.

We believe that under the ticketing regime set out in the Bill, the motorist could still end up facing extortionate fees from rogue parking companies, which could be enforced by aggressive security staff against the driver and, if necessary, against the keeper of the vehicle. We also believe that it may still be possible to use a barrier or even a chain to block an exit to a car park, forcing individuals to pay extortionate ticket fees. We believe that rogue parking companies could threaten motorists with the bailiffs and that their credit ratings could be affected. Our amendments have wide-ranging support from the parking industry and motoring organisations. The Government’s impact assessment recognises the risk of rogue wheel-clampers becoming rogue ticketers, but the Bill is silent on what should happen in those circumstances.

Patrick Troy, the chief executive of the British Parking Association, made it clear in his evidence to the Committee that rogue clampers will just move into another form of criminality—rogue ticketing. He recognised that parking is complicated and that it is often difficult for members of the public to understand the difference between the highway and private land. In the main, motorists remain ignorant of their rights, and rogue ticketers will take advantage of this.

Edmund King of the AA said that the current arrangements for street ticketing—that is, on the highway, for which there is a good independent appeals system through the traffic penalty tribunal—are independent and accepted by motorists and the industry alike as fair and proportionate. Parking companies pay a 65p levy per penalty charge notice to pay for the system, which is fair. We should have the same ticketing provisions on appeal for those who receive tickets on private land, especially as the Government are introducing keeper liability provisions in the Bill. Without a proper, independent appeal, it is unfair and unjust that a keeper could be held liable for a ticket that he or she knows nothing about.

In his evidence to the Committee, Edmund King talked about the following situation arising:

“A company, which seems to be incredibly profitable, is carrying out private ticketing. Its website says, ‘Welcome to the ultimate recession-proof business opportunity’ which has ‘limitless earnings potential’. All the company does is…suggest…that if you have a small piece of land and wanted to make some money, you could apply to my company, and I will send you some parking notices.

You will take your digital camera and take pictures of the cars of neighbours you do not like or of anyone who parks there, and send the pictures to”

that company, which will then

“apply to the Driver and Vehicle Licensing Agency for their details, send out tickets, and if 60% pay up, which they currently do,”

it will give £10 to the landowner for each ticket and pocket the rest. He continued:

“That company claims to have 1,200 agents who ticket in that way…even though that company claims to be a member of the British Parking Association, the 1,200 people are, as far as we know, just individuals. There is no control, and our worry is that the clampers who have been making money for nothing for the past 10 years are not going to give up”.––[Official Report, Protection of Freedoms Public Bill Committee, 24 March 2011; c. 145, Q419.]

Instead, they will become rogue ticketers.

Mr King also gave examples of problems in challenging the issue of a ticket, because there is at present no opportunity to do so. He cited the example of Mr B’s car, which incurred a private penalty in a Glasgow hospital car park even though Mr B and his car were in the south of France. The company involved commenced debt recovery procedures. A second case involved an AA member who had been issued with a parking charge notice by X. He had parked in the car park of a major DIY store and spent more than £1,000 in the store. It had taken him some time to choose the goods, and he received a parking charge notice from X, which stated that he had overstayed the maximum permitted time of three hours by 19 minutes. He had to pay £80, which would be reduced to £50 if he paid by a certain date.

A third example involved a Bristol driver whose car was spotted during two different visits to a fast-food outlet. The camera or operator took this to be one single visit and issued a penalty notice for 41 days’ parking. Two AA executives were also sent parking charge notices by post for infringing unclear bay marking rules in a local supermarket. Both of them challenged the parking charge notices, but they were threatened with damage to their credit rating and a visit from the bailiffs if they did not pay up.

[Andrew Gwynne (Denton and Reddish) (Lab)]

May I give my hon. Friend another example? It involves the Peel centre, a retail park in the centre of Stockport where many of my constituents have received penalty fines for overstaying in the car park. One of my constituents challenged this in the courts and had the penalty overturned because the signage was so small that it was considered unreasonable to expect people to read the notices. Does my hon. Friend agree that it would be better to have a proper appeals system in place, rather than expecting our constituents to have to go through the courts in such cases?

--- Later in debate ---

[Diana Johnson]

That is exactly right, and our new clause sets out clearly that anyone wishing to issue tickets should be a member of the British Parking Association or an accredited trade association, and should comply with the code of practice agreed with the DVLA on proper signage and a proper appeals system. We believe that that would solve the problem.

[Guy Opperman (Hexham) (Con)]

I was retained counsel by the Automobile Association in 2000, in the case of Vine v. London borough of Waltham Forest, so I come to this matter with a degree of experience. Subsection (1) of new clause 15 attempts to create a criminal offence in certain circumstances. Does the hon. Lady agree, however, that those circumstances are already covered by the measures in the Theft Act 1968 relating to obtaining property by deception, or by consumer protection legislation?

[Diana Johnson]

It is quite clear that consumer protection legislation has not worked in the motorist’s favour in the past. Creating a criminal offence, as the amendment would do, would send a clear signal about how serious the matter is and how people who are going to issue tickets should be properly regulated. I am not sure that I agree with the hon. Gentleman.

I want to move on to the RAC, which gave evidence that the provisions in the Bill would not create a landscape for parking in which the motorist could be guaranteed a fair deal from the parking industry. I know that the Government have made much of the fact that they are on the side of the motorist, but when motoring organisations and members of the industry itself are saying that the system being proposed in the legislation is unfair, the Government need to think again.

As drafted, the right to challenge a ticket is very limited. It would apply only to cases in which liability could be enforced against a keeper. That means that if a person did not pay up to the parking company, the company could go after the keeper of the vehicle, whose information is held by the DVLA. The protection offered is that only a member of an accredited trade association—currently the British Parking Association—will be allowed access to DVLA information. However, the Government state in the impact assessment that they expect 74% of penalty tickets to be paid up front at the time the ticket is issued, rising to 82% when keeper liability is added in. The expectation is that people will just pay up and will not have the opportunity to lodge any kind of appeal. There is no independent appeal procedure. We understand that, under the Government amendments, members of the British Parking Association must have an internal disputes procedure, but we say that is not good enough: it is not fair and not independent. It is widely perceived that it must be independent.

I mentioned the example of the company that Edmund King suggested made a lot of money out of ticketing. Will the Minister respond on the issue of road parking companies that are not members of the British Parking Association but are able to get information about a vehicle—for example, the address of a commercial vehicle on the side of a van parked in a private car park—or to gain access to lists of customers’ details in a private car park? In those circumstances, the ticketing organisation could pursue the keeper without having gone through the DVLA. As I understand it, that could be done perfectly legally, but it could be threatening if money is demanded quickly in order to avoid the bailiffs coming round.

Will the Minister talk more about contract law and consumer protection? She made much in Committee of the fact that consumer protection law was already in place, but we made the case that that did not provide adequate protection for motorists. Will she therefore comment on the Unfair Contract Terms Act 1977 and explain whether she feels it needs to be strengthened or whether further information needs to be given to the public about its provisions?

Let me make some specific points about the amendments in the group. New clause 15 would ensure that anyone issuing a penalty ticket must be registered with an accredited trade association, that all ticketers were currently members of the British Parking Association who must abide by the trade association’s code of practice, which is agreed, in turn, with the DVLA. The new clause also means that tickets placed on the vehicle or those issued later through the use of ANPR—automatic number plate recognition—would be subject to an independent appeals procedure. This would ensure that the maximum fines on private land are the same as for those on public roads and that the same terms and conditions, the same right of appeal and the same prompt payment discount would apply. This has widespread support. The RAC and the AA have recently conducted a populist poll of 12,000 people, of whom 98% thought that there should be some form of licensing for ticketers. That shows that there is clear and overwhelming public support for this new clause, so I hope the Minister will think again and support it.

Will the Minister clarify some points about the other amendments in the group? We welcome Government amendment 21, which came out of the evidence given to the Committee by Patrick Troy of the British Parking Association and Edmund King of the AA. The Opposition took the view that the drafting of the clause dealing with a fixed barrier was ambiguous. I am glad that the Government have recognised the issue raised by the Opposition and have sought to amend the provisions. I know, however, that the BPA still has some doubts about the new wording, as it fails specifically to mention wheel-clamping.

Government amendment 76 passes liability from the car hire company to the person who has hired the car where appropriate. Will the Minister comment on the fact that she is making it easier to transfer keeper liability in those circumstances? Has she given any thought to the circumstances where, for example, a motorist takes their car to a garage and the garage parks it on someone else’s private land? In that case, can the liability be passed back to the garage? As currently drafted, keeper liability means that the individual car owner would be liable as the keeper, even though the actions were carried out by the garage.

Amendments 39 to 54 are technical, but will the Minister explain why she wants to move from the term “relevant contract” to “relevant obligation” in the wording of the affected clauses?

--- Later in debate ---

[Lynne Featherstone]

I am sure such issues will arise across the land. The way to deal with them will be through either ticketing or barriers. However, it is also possible—although this is not required—for a local authority to take over responsibility for that land and issue tickets. Such matters can be addressed in that way, therefore. I cannot give a specific response on every circumstance that might arise across the land, but in Scotland the answer was barriers or ticketing; it was not particularly complicated.

We will carefully watch how things pan out, but our proposal is our best effort to get the balance right and to make sure that we proceed without the burdens of regulating everything in the land and instead let the parking industry look after itself so there is no cost to the taxpayer if ticketing is taken forward. An appeals process will also be put in place, and I shall address the detail of that shortly.

I listened carefully to the comments of the hon. Member for Kingston upon Hull North, and I think we are all trying to achieve the same outcome, but we just believe that we can get there in different ways. The best way in which I can respond to new clause 15 is by reference to the Government amendments in this group, which address ticketing issues.

The Government amendments propose a number of changes to schedule 4, which makes provision for vehicle keepers to be held liable for unpaid parking charges in certain circumstances. The amendments, many of which are of a drafting or technical nature, seek to clarify the effect of the provisions in order to reduce the potential for them to be misunderstood either deliberately or inadvertently by motorists, vehicle keepers and those responsible for parking restrictions and enforcement on private land.

In Committee, the hon. Lady argued for the introduction of a statutory scheme for the regulation of parking on private land which was the same as the one we are discussing now. The Opposition were particularly concerned for there to be statutory provision in respect of signage at car parks and appeals rights. That theme is again picked up in new clause 15.

[Diana Johnson]

I want the Minister to set out very clearly that the Government amendments do not provide for an independent appeals process, but are instead limited to keeper liability in very specific circumstances. They therefore do not provide proper and adequate independent appeals for anyone who receives a ticket.

[Lynne Featherstone]

For any land that is properly signed and under lawful authority, people will be protected by either consumer law or the appeals process that will be set up by the British Parking Association. If the hon. Lady lets me pursue my argument, I think that some of her questions will be answered.

I made it clear that parking enforcement was properly a matter for existing contract and consumer protection law, backed up by self-regulation by the parking industry. That remains the Government’s position—that is clear. However, we have looked again at the provisions in schedule 4 to see whether they include adequate safeguards for motorists and vehicle keepers, and the amendments strengthen those in two ways.

First, on appeal rights and keeper liability, I fully agree with the hon. Lady that there should be appropriate safeguards for motorists, including access to an appeals body for drivers or vehicle keepers to challenge parking charges where they believe they have been wrongly or unfairly imposed. Amendment 59 makes it clear that the notice to the driver or the keeper of a vehicle must set out the arrangements for the resolution of disputes or complaints. We have asked the parking sector, led by the British Parking Association, to establish an independent appeals body, funded by the parking industry and free to consumers, to cover tickets issued by members of the BPA or another accredited trade association. We have also made it clear that we will not bring the keeper liability provisions in schedule 4 into force unless and until the sector establishes, financially supports and agrees to abide by the decisions of an independent challenge body. Unlike the hon. Lady, we do not see a need to constitute this appeals body in legislation. We believe that effective self-regulation by the parking industry is the right way forward, wherever possible, rather than relying on a governmental regulatory approach.

[Diana Johnson]

I am interested in what the Minister is saying. However, self-regulation for wheel-clamping clearly did not work and we are ending up in a similar position in this area. By providing self-regulation, we will find that the good ticketing and parking companies will be members of the BPA but the organisations that are just going to intimidate and impose excessive charges through ticketing notices on vehicles will not be covered by the appeals process.

[Lynne Featherstone]

Intimidation is against the law. I would say to any motorist intimidated by a rogue ticketer that they should report it immediately to the police.

Secondly, on signage, amendment 61 sets out a reserve power to prescribe requirements on the display, content and location of signs at car parks and other relevant land. I say a “reserve power” because parking providers will be able to access DVLA keeper data, and therefore benefit from the keeper liability provisions, only if they abide by the British Parking Association’s code of practice on signage. We do not consider that regulation on signage will be necessary and we would want to introduce statutory rules on signage only if there was clear evidence that the BPA code was not living up to the job. I would be more than happy to read out to the hon. Lady the BPA code on signage, but it is quite long. Suffice it to say, it is big, clear and exactly what one would want in terms of proper parking signage. If that was not the case, we would keep an eye on the situation, but we do not want to introduce statutory rules about signage automatically because we believe that the BPA code will work.

The third significant change introduced by these amendments is to extend the application of the keeper liability regime to circumstances where an obligation to pay a parking charge arises as a result of parking on land without permission, which is to say in the context of a trespass or other tort. This change will help to address the concerns expressed by tenant associations and others about their ability to tackle unauthorised parking in communal parking areas once the ban on wheel-clamping comes into force. We have also made it clear in relation to vehicle hire companies that liability for any parking charges during the period of hire will rest with the hirer of the vehicle once the vehicle hire company provides a copy of the relevant documentation to the creditor. Again that reflects the position for on-road parking contraventions.

Finally, the amendments will allow for the use of CCTV or automatic number plate recognition technology, as well as the physical ticketing of vehicles, in order to manage parking on relevant land. Taken together, these amendments to schedule 4 will ensure that parking providers and other landowners will have an effective means of enforcing unpaid parking charges which are, at the same time, fair to the motorist and vehicle keepers.

On the concerns expressed about rogue ticketers, the Government are fully committed to monitoring the effect of the ban on vehicle immobilisation and removal and the associated keeper liability provisions in schedule 4.

--- Later in debate ---

Let me deal briefly with Government amendment 21 to clause 54, which responds to an issue raised by the hon. Member for Kingston upon Hull North in Committee. The hon. Lady referred to the concerns expressed by the British Parking Association about the effect of subsection (3) of the clause. The provision is intended to permit the continued use of barriers as a legitimate means of parking control and enforcement once the ban on wheel-clamping comes into force. As I said many times in Committee, it is not our intention that the presence of a barrier should, in itself, confer lawful authority for the wheel-clamping of a vehicle. It is clear, however, that subsection (3) as drafted has been read as providing such authority. The Government amendment puts the matter beyond doubt. A landowner will not be committing the clause 54 offence in circumstances where a fixed barrier, present at the time when a vehicle was parked on the land in question, restricts the movement of the vehicle, but that does not mean that the landowner will be able to resort to wheel-clamping or towing away in those circumstances. I trust that the amendment makes the position crystal clear.

[Diana Johnson]

Let us be clear. Are we saying that if someone receives a ticket in a private car park and there is a barrier that restricts the car from being driven away, that is completely legitimate? Is the Minister saying that a vehicle can still be immobilised by a barrier being put down at the front of the car park, with a ticket being issued, so that the car cannot move away? Is that correct?

[Lynne Featherstone]

The presence of the barrier means that the owner has either expressly or implicitly consented to pay the parking charges, which must be clearly labelled under either consumer protection law or the new laws under the keeper liability or BPA rules. If he or she has paid the charge, the barrier will be lifted and they can leave the car park. They must pay the charge for the barrier to be lifted, like a normal car park. That is what happens in a normal car park—when I go shopping, that is what happens. One complies.

[Diana Johnson]

The point I am trying to make to the Minister is that some rogue landowners will put down barriers to immobilise vehicles but will put a ticket for, say, £500 on the car, saying, “Pay the £500 and we will take the barrier up.” That is the issue. I am concerned not about legitimate parking organisations that are members of the BPA, but about those rogue companies that are out to make a fast buck.

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

I am conscious, after the previous debate in which we discussed DNA, civil liberties and serious crime, that this may appear to be a mundane matter. However, as we have heard this evening and on other occasions, it is a source of great concern to our constituents up and down the country. I am pleased that it will be addressed in the Bill.

I very much support, as my hon. Friend the Member for Hexham (Guy Opperman) said a few moments ago, the introduction of a ban on wheel-clamping. As the Minister pointed out, a ban has been successful for 19 years in Scotland, and it is high time that such a provision was introduced in England and Wales. However, I very much wish to echo the concerns outlined by the right hon. Member for Exeter (Mr Bradshaw) and the hon. Member for Kingston upon Hull North (Diana Johnson) that we may be shifting the problem elsewhere.

The protections that motorists enjoy as consumers differ enormously, depending on whether they park on local authority-controlled land or on privately controlled land. Under the local authority system, which is covered extensively by legislation, as we have heard, there is an appeals process that is laid down in legislation, and there is a reasonable level of fining. If someone transgresses, or apparently transgresses, the rules in a council car park, they are issued with a penalty notice of about £50, which is reduced to half that amount if it is paid within 28 days. Some two thirds of people who appeal to local authority car-park operators are successful, because they can demonstrate that they did indeed buy a ticket, which perhaps fell off the dashboard, or they can give another legitimate reason for their appeal.

That contrasts significantly with the situation of people who park on privately available public car parks and those operated by rogue car park operators. I have had one of those in my constituency. I know from raising the issue in a Westminster Hall debate that many other hon. Members have had similar problems. People, often elderly and vulnerable, receive a threatening letter in the post demanding payment, sometimes of £70 or even more. Within a couple of weeks that demand is hyped up to perhaps double the amount. There are then threats to send in the bailiffs and threats to destroy credit ratings. Even people whom we would not describe as vulnerable get very concerned, understandably, that their credit rating might be affected, and they end up paying the so-called fine—it is not, of course, a criminal penalty—because they simply want the problem to go away.

Earlier in the Session I introduced a private Member’s Bill on the very issue of consumer protection in relation to private car parks. Of course my Bill is rapidly going the way of the vast majority of private Members’ Bills. In it I proposed that local authorities should have the ability to license the operation of private car parks, in the same way as they license publicans or taxis. That would allow a responsive approach through the democratic system at a local level. However, I accept that my Bill is unlikely to find its way on to the statute book.

I hear what the Minister says with regard to self-regulation through the British Parking Association. I have met the chief executive of that organisation on a number of occasions. My assessment of its operation has been that the pilots that it has run so far have not been overly successful. It tends to be the responsible companies that are involved in such schemes, and the irresponsible ones that, understandably, are not.

I recognise that we have enough regulation on the statute book, and that the self-regulation route is the best way to go. However, if we are to go down the self-regulation route, I note that the legislation has provision for reserve powers to have the matter reviewed. I seek an assurance from the Minister that when the British Parking Association and perhaps other accredited organisations introduce an independent system of appeals, that is reviewed in a timely manner. If, as I suspect—I hope I am wrong— self-regulation does not work, those reserve powers will have to be used.

[Diana Johnson]

We have had an interesting debate re-examining the issue. Having listened to the Minister explaining the provisions that she is seeking to introduce by means of amendments to the Bill, and having heard her explanation of clause 54(3), I am even more concerned that companies that wish to get round the law, operate in an intimidating way and issue excessive parking tickets will see this as an opportunity to go ahead. Under clause 54(3) putting down a barrier in effect immobilises a vehicle, so I am particularly concerned about the Minister’s response on that.

The impact assessment sets out that when issued with a ticket, 74% of people will pay up, so it is well worth rogue ticketing companies putting tickets on vehicles and getting those 74% of people to pay up. They do not have to worry about dealing with the 26% who might appeal from the keeper liability angle.

I am keen to test the opinion of the House on new clause 15. In terms of rogue wheel-clampers, I think that motorists are going to be out of the frying pan and into the fire and that the rogue companies will run riot. The problem will not be solved and I think that we will be back here another day.

[Guy Opperman]

Does the hon. Lady not accept that the Theft Act 1968, consumer protection legislation or, more particularly, the Fraud Act 2006 apply in exactly the same way as new clause 15?

[Diana Johnson]

Unfortunately, none of those Acts has ever been used to deal with wheel-clamping problems. I assume that the hon. Gentleman thinks that they could be used where people have obtained excessive amounts of money by wheel-clamping and immobilising a vehicle. However, our new clause has the support of the AA, the RAC and the British Parking Association. Furthermore, given the views expressed by 98% of the 12,000 people polled on this issue, I think that we are on the side of motorists and the British public, and I certainly wish to push the new clause to a vote.

Question put, That the clause be read a Second time.