DVLA and Private Car Parking Companies

Drew Hendry Excerpts

Tuesday 21st March 2017 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Ms Dorries. I congratulate the hon. Member for Torbay (Kevin Foster) on bringing the debate to the Chamber. It has been one of those pleasant debates where everyone agrees that something needs to be done and it is in the gift of the Minister to do something about it. I look forward to hearing his remarks.

I will come to the hon. Gentleman’s remarks in a moment, but I will preface that by saying a few words about how this issue affects all the nations of the UK, despite some small variances in approach to regulation. We only have to look at the amount of times it has been raised in the UK Parliament to see that it is as much of an issue in Ipswich as it is in Inverness and across the rest of the isles. Having already discussed the practices of some private operators with Scottish Government Ministers, I am encouraged by their response in terms of what they can do. I welcome the work of the Business Services Association and others to improve the regulation of parking, and that of those seeking changes at Westminster.

However, the debate is about the relationship between private parking companies and the DVLA. While parking legislation is in the main devolved to the Scottish Government, the ownership and control of DVLA data is not. The current system has been built on the flawed premise of industry self-regulation, enabled by the provision of data from the DVLA. We are sharing DVLA data with companies whose practices, as we have heard from hon. Members today, are simply outrageous. I agree that it is right to call out companies such as Smart Parking, which has been mentioned several times and operates in my constituency too.

People are being charged excessive fines, and the tactics used to collect the debts are intimidation and threat, albeit through the written word. That is still intimidation and it is still unacceptable. I and my hon. Friends believe that access to our data is a privilege. I have asked the UK Government to put regulation on a better statutory footing. I know that operators must pay for access to the data, but I was displeased to hear that the cost of providing data to private parking operators is in fact subsidised. I will be interested to hear what the Minister says about that. The research from the Library says that the cost to the taxpayer of making up the shortfall was £612,000 in 2015—if the Minister is going to take on the might of the House of Commons Library, I will be delighted to hear what the data are. If that information is right, it means enabling what is tantamount to threatening behaviour.

The hon. Member for Torbay spoke in a measured tone; many of us feel more passion on the subject. I could tell that the passion was there, but he was holding back his anger. Certainly people hit by fines and chased for them would be unlikely to use such a measured tone. The hon. Gentleman spoke about the small terms and conditions. There are also machines that are difficult to use for reasons of height, and so forth. Perhaps when it is dark, or because it is necessary to bend down or conditions are not good, people press a zero instead of an “O” or vice versa. The hon. Gentleman talked about what reasonable behaviour would be, and it is certainly not reasonable behaviour to impose unreasonable fines without a real appeal process. I have had a similar experience to other hon. Members of writing to parking companies; Smart Parking was one that refused to acknowledge an MP wanting to act on behalf of a constituent. The hon. Gentleman also made a point about taxpayers subsidising the information, and I reiterate that I look forward to the Minister’s response to that.

[Kirsten Oswald]

The UK Government have undertaken a consultation on the matter. Last year I received written answers that made it clear that they were aware of public concern, but they had not discussed it with the companies or the DVLA. Does my hon. Friend agree that it would be useful to hear from the Minister whether those discussions have happened yet, and if not, why not?

[Drew Hendry]

My hon. Friend is right. The Minister is a reasonable man, and I look forward to his response. It is clearly something that he can deal with.

The hon. Member for St Austell and Newquay (Steve Double) made an important distinction, in a phrase that is worth repeating: he said that people got an invoice masquerading as a fine. That is exactly what people get. He talked about people waiting, to look for a space, which is a common occurrence, and getting fined. He, too, had had the experience of failing to get a response from Smart Parking and the other company that he mentioned.

The hon. Member for North East Somerset (Mr Rees-Mogg) mentioned someone making an honest mistake. Surely there is room in our society for people to be able to say, “Look, I just got it wrong; I didn’t know I was in there,” if it is a reasonable and honest position. The hon. Gentleman also underlined the fact that responsibility lies with the Minister. I was struck by his comment that when the DVLA allows the data to be used by the companies in question, it enables them to bully people. That is something that clearly must be addressed.

The hon. Member for West Bromwich West (Mr Bailey) was right when he spoke about people paying the fine even though they feel it is wrong. Many people just pay because they feel they have to. It is a point of honour for them, even though it is their honour that has been unfairly besmirched by the company that fines them—or, I should say, gives them the invoice. Dismissed appeals are common. Little attention is paid to what is said, and there is no agreed set of standards, or licensing or appeals process. That, too, needs to be addressed.

My hon. Friend the Member for East Renfrewshire (Kirsten Oswald) rightly mentioned that often it is the most vulnerable people—the ones who cannot afford to pay—who end up paying high fines, which puts them in difficulty. Those people are used to trying to make ends meet, and if they get a bill, they feel a sense of honour about paying it. Also, they rarely have the opportunity to go elsewhere to seek advice.

[Kevin Foster]

I am enjoying the hon. Gentleman’s comments. Does he agree that the fines are far higher than those that are legislated for in public car park enforcement?

[Drew Hendry]

That is an important point. It is not just a question of the unreasonable behaviour and bullying—because that it what it is. The fines are also disproportionately large compared with what might be imposed through a public sector car park, for example. As my hon. Friend the Member for East Renfrewshire, among others, said, that damages the reputation of our towns and cities, and areas that people visit for enjoyment.

The hon. Member for Totnes (Dr Wollaston) talked about problems when fines come through late, when people have discarded their tickets. People clear out their cars and get rid of evidence before they receive the letters, and that is a difficulty. If there are set times for the administering of statutory fines imposed through the DVLA, that should be mirrored when fines are imposed by companies—if they are still allowed to do it. Personally, I would not allow them to do it, but in any case, speed should be a consideration.

The hon. Lady also mentioned people being hounded, even though they had paid for a ticket. I thought she was correct when she talked about “harassing” letters, because that is what they are. They are designed to harass people into paying. That is simply wrong and should not be allowed. She raised another point that is a common theme—and the Minister should listen: a message should be sent from this place to the operators that they should not be able to ignore MPs when they seek information on their constituents’ behalf and forward a reasonable case for appeal.

Some of the letters that the hon. Lady received from people were telling, because those people were saying, “Look, I’m an honest person.” That came through in the letter from the “honest lady”. That is important. People are having their honour taken away in such cases. They feel that they have done the right thing. They have tried to make things work and to do everything correctly, but they are stopped at every opportunity, by a company that would be deeply suspected by most people of trying to make money from errors. That is clearly not correct. Another of the hon. Lady’s constituents commented “I’ll pay anyway”—how unjust to have to pay anyway, even though they were not at fault. They should not have to pay those amounts.

I am keen to hear what the Minister will say, including about cost to, or profit made by, the DVLA, and whether that contradicts the information I have had from the House of Commons Library. I hope he will listen to hon. Members and make sure that there is action to hold the DVLA to account for the information it gives to Smart Parking in Inverness and all the other companies we have heard about that indulge in similar practices.

--- Later in debate ---

[Andrew Jones]

I am coming to that. I recognise entirely what we have heard this morning.

A further requirement in England and Wales, where additional liability for parking charges exists for vehicle keepers, is that access to an independent appeals body is provided. That independent appeals service must be free to the motorist. The outcome of the appeal is binding on the parking company but not on the motorist, who can continue to dispute the charge. Companies that do not comply with the codes of practice can face expulsion from the trade association, resulting in the right to have DVLA vehicle keeper data removed.

[Drew Hendry]

Will the Minister give way?

[Andrew Jones]

I am running out of time, so I will not.

I want to answer the question from my hon. Friend the Member for Torbay about whether there is enough enforcement action. Bad practices are tackled. The DVLA can and does suspend the disclosure of data to companies that have not been compliant. However, there is clear concern from Members that we need to go significantly further. I have been working to ensure that we get the balance right.

Let me reassure the House on how we control the data. We have had lots of debates in this House about the right to privacy of our personal data. The trade associations have a code of practice, which includes access to DVLA data being tightly controlled. Companies with an electronic facility to request DVLA data have to sign up to a detailed contract that lays out the requirements on the use and security of data. The DVLA undertakes remote checks on parking companies.

In addition, the Government Internal Audit Agency carries out detailed audit visits on the DVLA’s behalf and undertakes more in-depth checking of individual cases to provide further assurance that requests have been submitted for genuine reasons and there is reliable evidence to back up the request. Non-compliance can result in sanctions, including the removal of the right to data.

The DVLA’s controls around the disclosure of data to parking companies were subject to a detailed data protection audit by the Information Commissioner’s Office last year. I can confirm that the Information Commissioner awarded the DVLA the highest rating for the controls it has in place surrounding the disclosure of data.

There have been a few questions about costs. I can confirm that this is priced on a cost recovery model, so it is neither subsidised nor run at a profit. The DVLA charges a fee for providing vehicle keeper details. In the cost recovery model, the fee is £2.50, which is designed to ensure that the cost burden is met by the companies involved and not the taxpayer. There are significant volumes of requests; we are looking at potentially 4 million in the course of this financial year, as my hon. Friend the Member for Torbay highlighted. However, the Government are not seeing either a profit or a loss.

Many Members have mentioned constituents’ complaints regarding bad practice and motorists who feel they have been unfairly treated by parking operators. There are several routes for redress should an operator fall short of the standards expected. The first is the company’s initial appeal process, which it is required to offer under its code of practice. There is also the independent appeals service, which is free to motorists. I have already mentioned the need for an operator to demonstrate compliance with the code of practice in order to retain its membership of an accredited trade association. If there are breaches of the code of practice, the trade association is there to investigate and ensure that action is taken. Without membership, there is no access to DVLA data.

Consumer protection laws also apply here. Those laws are designed to protect consumers from unfair practices. Trading standards officers are there to investigate complaints and can take action against a particular company. Consumer protection legislation applies to individual cases and the actions of the company in individual circumstances. Breaches can result in prosecution.

I hope that colleagues will recognise that the DVLA has gone through significant controls to ensure that the data are handled correctly and that there are controls and audits. There was a question about responsibility. The DVLA is the responsibility of the DFT. The parking companies and on-street and off-street parking sit with the DCLG. We have to work on this issue together because, without car ownership data, accessed through the DVLA, this industry would stop.

Colleagues have raised issues with me in writing previously and today, and there is clearly a significant issue to resolve. The Government are most concerned about the matter, which is why the DCLG launched its consultation. I will ensure that DCLG colleagues are aware of concerns and the content of this debate. I will also arrange a meeting with the trade associations, to highlight the concerns we have in this House about their members’ practices and to review exactly what enforcement action they take. I share the view of my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) that this is a little bit David and Goliath. Our job is to stand up for the Davids, not the Goliaths. That is completely fair.

I have been asked whether there should be a single standard-setting body for the industry. Competition between industry bodies is generally quite good. Competition can improve services, so I do not think we necessarily need to have just one body. I was also asked whether the relationship between the trade associations and the DVLA is appropriate. It is legal, and it is controlled and audited. The information provision is managed. The concern lies in the code of practice and its enforcement. That is where the next actions will be, and I will take those actions forward from today’s debate.