Private Car Parks

Norman Baker Excerpts

Tuesday 14th September 2010 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I congratulate my hon. Friend the Member for Crawley (Henry Smith) on securing this debate on consumer protection—in effect, that is what it is—for users of private land. I also congratulate him for the first time officially on his election. He had a good reputation as leader of West Sussex county council, and I hope he carries it through in this House, as I am confident he will.

This issue can be controversial and, understandably, can raise strong emotions. I note the contributions of support from my hon. Friends the Members for Ceredigion (Mr Williams), for Newton Abbot (Anne Marie Morris), for Dartford (Gareth Johnson), for St Ives (Andrew George) and for Camborne and Redruth (George Eustice).

Off-street land accounts for a significant proportion of the space that is allocated for parking in England, and highway authorities have a statutory duty to manage the traffic network to ensure the expeditious movement of traffic, as required under the Traffic Management Act 2004. Off-street land may be in the ownership of and managed by the local authority, or it may be in private ownership. As my hon. Friend the Member for Crawley said, off-street parking on private land has caused more controversy than that on public land.

The owners of private land are entitled to decide who may or may not park on their land, and the terms and conditions on which that land may be used. For example, national health service organisations have autonomy to make decisions that best suit their local circumstances, and private land may include land controlled by public bodies for the purpose of the point made by my hon. Friend. We uphold the right of landowners to limit and to control who parks on their land, but it is important that those who want to park there are aware of the status of the land, the terms that apply and any penalties that might flow from contravening those terms. It is also important that any penalties are appropriate and proportionate.

One option open to landowners who wish to limit use of their land for parking purposes is to use gates or barriers, which are relatively inexpensive to install and probably one of the simplest and most effective ways for landowners to manage use of their land. Barriers can either prevent access entirely or ensure that a charge for parking there can be collected. They also have the advantage of making it absolutely clear to motorists where they may or may not park.

However, in other areas it may not be so clear to the motorist that land is not available for parking by anyone, or they may believe that they can park with impunity. I am told that it is not unknown for motorists to park outside the kiosk at a petrol station while nipping off to transact business elsewhere. Clearly that is not acceptable, and landowners are entitled to deal with the problem. Motorists parking on private land allocated for that purpose have the protection of the Government's consumer legislation. Exactly what that protection comprises will, of course, depend on circumstances, and it is for trading standards officers to decide whether the circumstances merit action being taken.

Consumer protection legislation includes legal safeguards enabling motorists to seek legal redress if they have been unfairly penalised for parking on private land. For example, if signs or price indication about a service are misleading, or if information about high charges is available only when motorists have entered the car park and they cannot exit without paying, they may raise the matter with their local trading standards officer. In response to a point raised by my hon. Friend the Member for Crawley, trading standards officers may also be interested in aggressive letters that are sent to individuals. Aggressive debt collection is an offence, and may result in action by trading standards officers. I am aware of constituents who have been frightened into paying because of the threat that the sum may double and because the tone of letters is so threatening that they feel obliged to pay. That cannot be satisfactory.

Marketing information to promote the supply of parking services that is given to consumers at the entrance to the land or elsewhere is likely to be a commercial practice within the meaning of the Consumer Protection from Unfair Trading Regulations 2008. If such information is misleading or aggressive, or unfair in other ways, it may be prohibited under those regulations, which are enforced by trading standards officers or the Office of Fair Trading by way of injunctions and through the criminal law.

If a motorist decides to park in a car park and buys a pay-and-display or similar ticket, it is likely that a contract is established and that some or all the information on a notice at the entrance or elsewhere setting out the terms under which parking services are offered may become the terms of the contract in law. If the motorist contends that a term is unfair, the Unfair Terms in Consumer Contracts Regulations 1999 may be relevant. Those regulations provide that unfair terms are not binding on consumers, and trading standards officers and the Office of Fair Trading may wish to take action.

The Consumer Protection from Unfair Trading Regulations 2008 deal with misleading signs. There may be an offence under regulation 6 if material information is hidden or provided in a way that is unclear, unintelligible, ambiguous or untimely, or if it is omitted. That may apply if signs cannot easily be seen or read for any reason, but must be material and likely to affect the decision making of the average consumer—in this case, the motorist.

If parking charges cannot easily be seen before entry and the information relating to them is placed, for example, much higher than the motorist would reasonably expect, and the motorist cannot exit the car park without paying, that may constitute an offence, but it is less likely to be an offence if the motorist can easily exit without paying when they have seen the charges and if they decide not to park, or if the charges are around what the consumer would reasonably expect. That is because it is unlikely that the motorist’s decision is affected by the omission.

[Anne Marie Morris]

Will the Minister give way?

[Norman Baker]

If my hon. Friend will forgive me, I was left with only 12 minutes in which to respond and I want to answer the points that were raised. If I find some space later, I will give way to her.

Owners of private land will often want recourse to the Driver and Vehicle Licensing Agency to secure information about vehicle ownership. DVLA policy is to ensure that organisations such as private car parking operators are subject to adequate controls and safeguards before disclosing personal data about vehicle keepers. To safeguard the release of information from DVLA’s vehicle record, the agency requires parking enforcement companies to be a member of an accredited trade association. To retain membership of such an ATA, the company must abide by its code of practice to promote fair treatment of motorists. Car parking operators who do not comply will face expulsion from the ATA and will not be able to access personal data in the course of their business.

So far, the British Parking Association is the only relevant ATA for the parking industry, and all members must comply with its code of practice, which covers, among other things, requirements for signage and methods of contact with motorists. The BPA’S code of practice provides that there must be signs that show in plain and intelligible language all the terms on which an operator may wish to rely. Signs must be placed at the entrance to the car park, and there must be adequate signage placed in other locations throughout the car parking area so that motorists are aware of the risk involved at the time of parking or leaving the vehicle.

The code of practice sets out the information that must be included on a ticket. That includes the parking operator’s registered company name and, if the operator is using a trading name other than its registered company name, a geographical address where documents may be served, as well as details of all other communication methods, including a phone number or non-mechanical contact point by which motorists may challenge a parking ticket. Parking operators are encouraged to provide an e-mail or website address.

One condition of membership of the BPA is that the company has a complaints procedure that enables motorists to challenge any ticket that they believe was not merited. This year, the BPA will launch an independent body to consider cases in which a motorist is unhappy with the way that a company has dealt with a complaint, and it will be mandatory for parking companies to abide by the decisions of that body. Those that do not, without good reason, will be expelled from the BPA and will no longer be able to enforce parking restrictions on their land with the use of vehicle keeper data from DVLA. As my hon. Friends the Members for Crawley and for St Ives said, that relies on effective self-regulation by the parking industry, and we are prepared to see whether that works but we reserve the right to take further action if it does not. I note that two companies have already been expelled since the approved operator scheme was set up in October 2007, so it seems that the BPA recognises that self-regulation must not be toothless.

I turn to the suggestion that local authorities might license private sector car parks. Powers exist to enable that to be done, but it is wholly a matter for local authorities, such as West Sussex county council, to decide whether to do so. Section 44 of the Road Traffic Regulation Act 1984 enables the provision of an Order in Council to enable the operation of public off-street parking places to be regulated in England and Wales by the county council. My hon. Friend the Member for Crawley may have been unaware of that when he was leader of that august body. The Government would be willing, in principle, to consider that if a county council sought it. My officials tell me that they are not aware of any such order ever having been sought by a county council.

Not only are powers available to local authorities to regulate off-street parking, but they may also, with the agreement of the landowner, take over operation and enforcement on that land. For many landowners, particularly public bodies, such as hospitals and educational establishments, local authority enforcement using the Traffic Management Act 2004, with its strong regulated framework, may be an attractive option, which enhances public accountability, but a local authority cannot force a landowner to take on that responsibility, nor can a landowner force a local authority to do it. There must be a willing partnership on both sides.

I assure hon. Members that the Government are very aware of public concern about the enforcement practices adopted by some companies operating private car parks, including unreasonable behaviour and excessive additional charges. As set out in the coalition agreement, the Government are committed to banning unacceptable wheel clamping on private land and I hope that my hon. Friend saw the Home Office’s welcome announcement last month taking that forward.

We are working with the industry to ensure that the legislation is introduced smoothly and effectively, and can come into force as soon as possible. Apart from tackling outrageous and unacceptable behaviour by some clamping companies, that will help to improve the image of the private parking industry, which works well overall but has been tarnished by such behaviour and the actions of some companies. We are working with the industry to improve working practices, and to encourage compliance with relevant codes of practice.

[Anne Marie Morris]

I am delighted to hear that there are so many remedies. My only comment is that one must be a lawyer rather than an average driver to take advantage of them. Something should be done to make them more public.

--- Later in debate ---

[Norman Baker]

We will do our best to publicise what is available and to ensure that good, sensible, straightforward language is used so that people can understand it.

I am grateful for the opportunity to set out—

[Mr Charles Walker (in the Chair)]

Order.