Parking (Code of Practice) Bill

Rishi Sunak Excerpts

2nd reading: House of Commons
Friday 2nd February 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

Nobody leaves their house because they want to go and do some parking; parking is simply a means to an end, and it should be as easy as possible. The millions of people across the country who use private parking facilities every day deserve a system that is fair, transparent and consistent, but as we have heard from Members on both sides of the House, it is clear that the current private parking system has at times failed each and every one of these tests.

I join hon. Members across the House in congratulating my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) on bringing the Bill to its Second Reading. It rightly seeks to address an issue that comes up time and again in all our postbags and inboxes. As we have heard, there is currently no standardised, central and independent regulation of private parking operators. Today, there are two different trade associations, each with its own code of practice, and, as the hon. Member for Perth and North Perthshire (Pete Wishart) mentioned, the industry is largely self-regulating.

That has led to a range of issues for hard-working constituents doing their best to abide by the rules as they go about their day-to-day business. As we heard, people are being charged unreasonable amounts of money for what are clearly very minor and honest mistakes. My Department has received a case where someone accidentally mistyped their registration number into a parking system, and for the sake of a 50p ticket received a £45 fine in the post—90 times the cost of the original parking ticket.

As we heard from my hon. Friends the Members for Solihull (Julian Knight) and for Clacton (Giles Watling), also problematic is poor signage. To park in a private car park is essentially to enter into a contract, but signs are often poorly lit and have unreasonably small text, meaning that drivers are completely unaware of the contract they have just entered into. As my hon. Friends the Members for Havant (Alan Mak), for Torbay (Kevin Foster), for Wells (James Heappey) and for East Worthing and Shoreham (Tim Loughton) and the hon. Member for Cardiff South and Penarth (Stephen Doughty) set out, however, unjustifiable charges and poor signage are not the only problems facing motorists.

[Stephen Doughty]

I am glad to hear that the Minister supports the Bill. Will he also look closely at the links between one of the so-called trade associations, the International Parking Community, and Gladstones Solicitors, and the listing of all these accredited operators? It is clear from Companies House information that there are clear links between the individual directors of Gladstones and the IPC, which goes under United Trade and Industry Ltd, and that there has been a repeated changing of names and addresses in an attempt to cover up these links.

[Rishi Sunak]

The hon. Gentleman is absolutely right to highlight the alleged conflicts of interest within the industry. That is certainly something that the code should look to improve. On his other point, he is right that the way some operators contact members of the public is deeply worrying, as we have heard, and how they label tickets. We have also heard familiar stories of intimidating letters issued by companies that often falsely give the impression of being from a solicitor. These letters often contain threatening, legalistic language, hide appeals information in the small print and disingenuously push people towards paying unjust fines, unaware of their right to appeal.

[Yvonne Fovargue]

Does the Minister agree that parking companies should not be able to raise these levels of fines if a levy is imposed on them to facilitate a new scheme?

--- Later in debate ---

[Rishi Sunak]

The hon. Lady raises the issue of the level of fines, which is also something the code is considering. In theory, there is currently a maximum fine; the job of the new code is to make sure it is properly enforced.

Similarly concerning is the use of county court judgments, as was raised by the hon. Member for Cardiff South and Penarth. We are aware of a case in which a private parking operator pursued a ticket against someone who had sold the offending car before the ticket was issued. Inexplicably, the operator decided to obtain a CCJ against the unsuspecting person, which they only discovered when it caused the family’s application for a mortgage to be rejected at the last minute—their chance to buy their dream home ruined by a £40 fine meant for someone else entirely. Such practices are clearly unacceptable and must come to an end.

That brings me to the appeals process itself. As many hon. Members have mentioned when writing to my Department, accessing the appeals process is no guarantee of a fair hearing. In too many cases, appeals seem to simply ignore common sense. In one case, despite the fact that the parking operator had stated that the alleged parking offender was a male, the appeal process upheld the case against a woman.

We would imagine that if the industry had confidence in the tickets they were issuing, they would be willing to defend their decisions at appeal. My hon. Friend the Member for Wells touched on this, and the House may be interested to know that in the year to September last year, for just one of the trade associations’ appeal services, in almost 40% of cases brought to appeal, the parking company immediately caved and cancelled the ticket. That statistic suggests that parking operators are in many cases issuing questionable tickets that they themselves do not even think are worth defending at appeal.

Clearly we must take action to put an end to the indefensible behaviour we have heard described today by Members across the House, and the Bill is an opportunity to do just that. Specifically, it will enable the Government to introduce a new single code of practice to cover the whole industry, which will give drivers the confidence to know that they will be treated in a fair and consistent way.

To respond to the comments from my hon. Friends the Members for Christchurch (Sir Christopher Chope) and for Dudley South (Mike Wood), an operator that fails to comply with the code will lose its access to DVLA data. That is a severe penalty, making it effectively impossible to enforce a ticket. Further, if a trade association has been found to be breaching the code of practice, its status as an official trade association will be revoked immediately. Any costs arising from the code, including its enforcement, will be covered by a new levy on the industry, which the Bill also provides for.

The Government have started to develop the new code in partnership with stakeholders, and I welcome the fact that the director of the RAC Foundation, Steve Gooding, is chairing an industry advisory panel. I put on record my thanks to him and the other panel members for the work they are doing. I look forward to receiving their latest submission.

I thank all hon. Members who have participated today for highlighting the clear need to improve standards and regulation in this industry. I am sure that my officials have been taking close note of all the examples raised, which will go into developing the code, the principles of which we hope to publish at the same time as the Bill’s Committee stage.

The hon. Member for Makerfield (Yvonne Fovargue) and my hon. Friends the Members for Chippenham (Michelle Donelan) and for Thornbury and Yate (Luke Hall) raised the issue of disclosure. The Government agree that transparency in disclosure is very important and should form part of the Bill. The exact form is still being worked on, with not just car park operators but those involved in the appeals process, and that data should be available for the public and audit authorities to analyse.

I commend my right hon. Friend the Member for East Yorkshire for the time and effort he has put into bringing the Bill to Second Reading. It will pave the way for real reforms that will make a positive difference to people across the country, and I am delighted to speak for the Government in support of his Bill.

Parking (Code of Practice) Bill (First sitting)

Rishi Sunak Excerpts

Committee Debate: House of Commons
Thursday 19th July 2018 Public Bill Committees

[Daniel Zeichner]

The right hon. Gentleman is absolutely right, but the problem is that about 30% are intimidated. That is the problem, and the point I am making is that until we can give people confidence, we will need a very strong message and very clear designation. I do not know whether the Minister has given any thought to how we might go about that, but it is certainly where I would like to go with it ultimately. Until we do that, the numbers will remain significant, and I fear we will still get complaints in our postbags about the practice.

With that caveat, I think that the proposals are a significant step forward. I am sure that they will get support across the House, and the sooner we see them in legislation the better.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

It is a pleasure to serve under your chairmanship, Mr Bailey. I do not want to detain the Committee for long, but I congratulate my right hon. Friend the Member for East Yorkshire on introducing the Bill, and more generally on his work to highlight this issue, which affects millions of people every day.

I was pleased to speak on behalf of the Government in support of the Bill on Second Reading. I pay tribute to all hon. Members for the important contributions they have made, both today and on Second Reading, highlighting the unfair practices that are being carried out every day, affecting their constituents. We heard then, and we heard again today, that Members are doing their absolute best to stand up for their constituents and to highlight these practices, which need to be stamped out. Indeed, that is what the Bill is designed to address.

I will turn briefly to some of the specific questions raised by hon. Members, but first I pay tribute to my right hon. Friend the Member for Scarborough and Whitby, who, in a previous guise as a Transport Minister, himself took steps to tighten up practices in the parking industry. Those steps have already been mentioned today, and he was far too modest to take any credit for them, but we should pay tribute to him for tightening up the rules regarding the unfair use of automatic number plate recognition and clamping.

The hon. Member for Cardiff South and Penarth spoke passionately today, as he did on Second Reading, about the issues affecting his constituents. I am pleased to say that in general, all the issues that he raised are likely to be covered by the new code of practice. I would be delighted to meet him when we return from the recess to discuss any further points in more detail, but he spoke well on Second Reading about threatening solicitors’ letters. What he said stayed with me, and I am determined to ensure that the code of practice has specific guidance on that point, which affects so many people.

[Stephen Doughty]

I appreciate what the Minister has said. What discussions has he had, or will he have, with the Ministry of Justice and the SRA? Just to convey the scale of this, another firm that I mentioned, called BW Legal, regularly issues 10,000 county court judgments a month, and is known to have issued 28,000 in one month. A significant proportionate of them relate to parking. They are jamming up our court system, and are often totally unjustified.

[Rishi Sunak]

The hon. Gentleman makes a very good point. I am pleased to tell him that we will engage directly with the MOJ and the SRA. To date, I do not believe that we have done so, but we will happily do that. He makes a very good point about the impact on the court system. More broadly, on the point that he raised on Second Reading and today about county court judgments and, in his personal experience, letters going to previous addresses, I am relatively confident that we can address that in the code of practice by including some clauses about reasonable efforts by parking operators to find a more up-to-date address.

The hon. Gentleman talked about the appeals process, which of course should be independent. I am pleased to tell him that, as part of the code of practice in the Bill, it will be scrutinised, funded through the levy. That will ensure independent scrutiny of the appeals process, as well as the associations and operators, to ensure that appeals are working not in the manner that he highlighted, but in one that is fair to those who need to avail themselves of such a process. He talked about information, which many other hon. Members talked about, and of course the code of practice will outline the information that should be standardised on tickets and signage, so that there is good practice and consistency across the industry.

On the devolved Administrations, I am pleased to tell Committee members that the Welsh and Scottish Governments are represented on the working group that has been engaged in developing the code of practice, and are in extensive dialogue with the team in my Department, to ensure uniformity of execution of the Bill and to confirm that all the various matters have been put in place as required.

I have an update for the Committee. The explanatory notes are out-of-date with regard to the legislative consent motion. Originally, the advice from the Scottish Government was that that would not be required, but that advice changed and they believe that they require it. That motion has now been passed, so I am pleased to say that the Bill will have force in Wales and Scotland, and that all legal requirements have been satisfied in that regard.

I pay tribute to the experience of the hon. Member for Cambridge in transport matters. He has spent a considerable time in the House weighing in on such issues, so it is a pleasure to have his experience on the Committee. I will touch briefly on the issues he raised. He made a good point about rogue operators. I am confident that not having access to the DVLA will deal with the vast majority of problems that hon. Members have mentioned, because the lifeblood of trying to extort money from people is having access to their details.

By standardising tickets, complaints processes, fees and lots of other things, the code of practice will offer us the opportunity to educate the British public when the Bill has passed. From that point forward, one will be able to say to the people of the United Kingdom, “This is what tickets should look like. These are the various things that you should expect to see on them”— whether that is a kitemark or something else. In that way, through consumer education, we will hopefully ensure that they will be able to check for some kind of mark or language that would not be on rogue parking tickets. By bringing everything together in a standard way, that education process can happen in a way that it cannot today. I hope that that will deal with most of those issues.

I am also happy to look at the law that already exists to tackle people who are doing things that are presumably illegal, such as trespassing or interfering with other people’s private property. As I said, however, the huge opportunity comes from the code of practice, which standardises behaviour and practical things such as the information contained on signage and tickets, so that we can get to the point where people know what to look for on a parking ticket.

[Mr Goodwill]

Does the Minister agree that one reason why people often fall into those traps is that local authorities are generally very straightforward and honest with people in their parking areas, and offer free parking that is free? For example, in Scarborough, all parking is free for tourists after 6 o’clock.

[Rishi Sunak]

I am sure everyone watching the Committee will have heard that advertisement to visit my right hon. Friend’s constituency. Near to my own as it is, I also encourage them to visit the Yorkshire Dales and the North York Moors.

[Kevin Hollinrake]

While we are on the subject of Yorkshire, as well as putting on record my thanks to APCOA Parking at York railway station for letting me off my parking ticket, I ask the Minister to join me in recognising the fantastic efforts of Malton Estate. It owns private car parks in the centre of Malton and gives two hours of free parking throughout the day. That has incentivised more shoppers to come into the town, and is one of the reasons why Malton is now Yorkshire’s food capital.

[Rishi Sunak]

I pay tribute to the car parking practices in Malton that my hon. Friend describes. It is evidence of what my hon. Friend the Member for South West Bedfordshire said, which is that good, honest and fair car parking is vital for the health and wellbeing of our town centres and high streets. We all want to see it encouraged across our constituencies.

[Kevin Brennan]

I will resist the temptation to advertise the delights of Cardiff, although they are great and many. We are all grateful to the Minister for sending us the draft advisory code of practice summary in advance of the sitting. Paragraph 12(b), which covers complaints handling, states:

“There should be a requirement to issue an acknowledgement or full response to a complaint in a timely manner”.

Does he agree that if a parking company failed to respond to correspondence on such a matter from a Member, and if that wording is included in the final code, it would, in effect, be in breach of the code of practice?

[Rishi Sunak]

I should have mentioned that the code of practice includes the issue that the hon. Gentleman has raised both on Second Reading and in Committee. This is just a summary of the code of practice. The details, including timescales and exactly what will be required, will be fleshed out. However, in broad brushes, he is right: the code of practice is there to be adhered to. Parking operators will be audited as to whether they are adhering to it, partly by the trade association that they belong to and partly by an independent scrutiny body that will be funded by the levy. There will be sufficient scrutiny of operators’ behaviour in this regard, and replying to correspondence will be one factor considered when their behaviour is evaluated.

[Stephen Doughty]

The Minister is being very generous with his time. I have one specific question about paragraph 4 of the draft code of practice summary, which covers clear signage and surface markings. We have talked about clear signage, but surface markings are also important. For example, at the entrance to blocks of flats in Cardiff there is often a barrier. However, around Cardiff City’s football stadium—they are in the premier league this season; many people will be coming to watch—it is not often clear where the public road ends and private land begins. Football fans are often caught out, suddenly finding themselves on private land on the boundary between my constituency and that of my hon. Friend the Member for Cardiff West.

[Stephen Doughty]

The stadium is in my hon. Friend’s constituency; the road where many people park is not. People often get caught out without realising that they are on private land, because no clear boundary is indicated between the public highway and the private land. Will the Minister look at that issue?

[Rishi Sunak]

I do not want to get drawn into that intra-Cardiff debate; I will leave the hon. Gentlemen to conclude that after the Committee. I am happy to look into the issue that the hon. Member for Cardiff South and Penarth mentions. Cardiff is wonderful and is represented here in force, but I think Yorkshire is slightly more represented. Yorkshire Members remind everyone to visit the delights of Yorkshire over this summer.

In conclusion, I thank Committee members for their constructive comments, this morning and on Second Reading. I look forward to working with not only my right hon. Friend the Member for East Yorkshire but all Committee members to bring this important piece of legislation on to the statute book as soon as possible, so that we can start to right the wrongs that so many of our constituents have had to endure. This is a fantastic example of Members from all parties working together to solve a practical problem that will make a meaningful difference to people’s everyday lives.

I commend the Bill to the Committee.

[Sir Greg Knight]

I thank all colleagues who have contributed to the debate. Each has brought to bear some of their and their constituents’ experiences of unfair practices, which emphasises that the Bill is overdue and necessary. I also thank the hon. Member for Perth and North Perthshire, who cannot be here because of other proceedings but who has indicated his support on behalf of the Scottish National party, so the Bill really does have all-party support. I thank the Minister for his diligence, help and assistance.

I commend the Bill to the Committee.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 11 ordered to stand part of the Bill.

Question proposed, That the Chair do report the Bill to the House.

Parking (Code of Practice) Bill

Rishi Sunak Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 23rd November 2018 Commons Chamber

[Alex Chalk]

That was elegantly done. Well, on that basis, I do not have much more to say. I have made the points I wanted to make.

With the Bill being improved in the way that has been proposed, I end by congratulating my right hon. Friend the Member for East Yorkshire. This is past time, and the Bill will be welcomed in my constituency, by the constituent I mentioned, by me and, I am sure, by Members on both sides of the House.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

It is wonderful when both sides of the House come together to support and put in place legislation that will make a practical difference to the day-to-day lives of the millions of people we represent. In that vein, I wholeheartedly congratulate my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) on highlighting this issue, and on the tenacity and diligence with which he has brought the issue to the Floor of the House and to Committee. I pay tribute to him, and many people will be grateful for his efforts.

I will speak briefly now, and perhaps respond to hon. Members’ comments more generally on Third Reading. For now, I will limit my remarks to the various new clauses and amendments.

New clause 1 will appoint a single appeals service to create further clarity for consumers, giving a well-signposted route to appeal a private parking ticket. I am delighted on behalf of the Government to support the new clause. It and the associated amendments will ensure that there is a fair, transparent and consistent appeals service for motorists. This has been warmly welcomed by consumer groups and the parking industry alike.

I am pleased to tell the House that Steve Gooding, the director of the RAC Foundation, has said:

“we particularly welcome the proposal for a single, independent appeals service, which, together with a single, clear code of practice should establish a better, clearer framework and a level playing field that is fairer for all”.

The foundation has challenged the effectiveness of self-regulation in the parking industry. Only this week, it drew attention to the fact that in the second quarter of the financial year, private parking companies sought yet another record number of vehicle keeper details from the DVLA with which to pursue ordinary drivers and motorists.

The chief executive of one of the industry’s leading trade associations, the British Parking Association, has said that the association welcomes the amendments tabled by my right hon. Friend the Member for East Yorkshire, commenting that they

“chime with our call for a single standard body, single code of practice and a single independent appeals service. This framework provides a unique opportunity to deliver greater consistency and consumer confidence”.

The BPA looks forward to pushing

“for a positive outcome for all.”

It is therefore with pleasure that the Government can support new clause 1.

I am also pleased to support, on behalf of the Government, amendments 1 to 6, which are pragmatic alterations that will support the Bill’s delivery through secondary legislation. They will give the Secretary of State the ability to delegate functions to non-public bodies, such as experts in auditing, as seems eminently sensible. They will clarify the role of the Secretary of State, in that he or she will have final approval of the code of practice and any subsequent alterations that will be submitted to Parliament. Finally, as my right hon. Friend stated, the amendments will expand the existing levy under the Bill to cover the cost of appointing and maintaining a single appeals service. The Government support all the amendments.

Let me turn briefly to the amendments tabled by my hon. Friend the Member for Christchurch (Sir Christopher Chope). I welcome his broad support for the Bill’s measures, and share his commitment to, and enthusiasm for, ensuring that the measures start making a practical difference to people as soon as possible. However, following the arguments that have already been made by various Members on both sides of the House, I, too, do not believe that the amendments are necessary. I can personally assure my hon. Friend that the Government and I are committed to creating and publishing a code of practice for the private parking industry as soon as is practically possible. I can confirm that considerable work has already gone into this, and I will happily walk the House through that in a second.

More generally, placing an arbitrary timeline on the process of developing a code and implementing the Bill would compromise our ability to make sure that the Bill comes into force in the way that we want it to, and with the impact that we all desire it to have. For example, a consultation with the public is necessary. Given the scale and volume of the correspondence to our postbags and email inboxes, which are already full regarding this topic, one can imagine that that consultation will be of extreme importance to many people whom we represent. They will want time to have their say, and we should make sure that that is possible. Furthermore, as has already been outlined, procurement practices might be required, and if they should be required, they will be subject to statutory timelines that need to be obeyed. Lastly, if the code of practice was going to put in place new provisions around such things as standard signage, standard forms of parking tickets or standard language, it would be appropriate for a suitable transition period to be put in place to allow companies to adjust to the new, fairer measures.

[Sir Christopher Chope]

Taking all that the Minister is saying into account, what is his best estimate as to when these measures will actually be effective in law?

[Rishi Sunak]

I cannot give my hon. Friend a precise answer to that question, simply because, in the first instance, I am not in control of the parliamentary process in the other place, as he will be aware.

However, what I can do for my hon. Friend and the House is to give some evidence as to the pace and commitment with which I and my team are working on this issue. My predecessor, my hon. Friend the Member for Nuneaton (Mr Jones), had already, even before the Bill’s Second Reading, asked the director of the RAC Foundation to form a working group to start developing an outline code of practice. That working group contains multiple stakeholders from across the industry, including the two main trade associations—the BPA and the International Parking Community—the Welsh and Scottish Governments, and bodies such as People’s Parking, the RAC Foundation, the traffic penalty consortium, the British Retail Consortium, and the DVLA. The body has already met four times—each time extensively, for over two hours—to debate all the issues. I personally have spent time with the director of the RAC Foundation and the BPA, and I am shortly to meet the IPC. My officials have had more than 30 bilateral meetings with members of the working group. At my instigation, my officials have hosted a parking operator roundtable in the Department to fully engage the industry to help to develop the code of practice.

All that work has not been in vain. It has informed a draft code of practice, which has already been published and shared with the Public Bill Committee, and I would be delighted to place a copy of it in the Library for hon. Members to see. I hope that, collectively, this will give all hon. Members the reassurance they need that the Government and I are firmly committed to developing this code of practice, and ensuring that the legislation is enacted as quickly and practically as is possible.

--- Later in debate ---

[Rishi Sunak]

It is a pleasure to conclude this outbreak of consensus and unity. The hon. Member for Denton and Reddish (Andrew Gwynne) put it perfectly: of course private landowners and car park operators have the right to manage their land effectively, but that must be done in a fair, reasonable and proportionate manner. For the first time, as a result of this Bill, that is exactly what will happen. We have heard so many contributions from Members in all parts of this House about the sharp practices that our constituents have had to endure, and we will now be able to put an end to those nefarious ways of doing business.

So many specific examples have been given that it will be difficult to respond to all of them, but I wanted to touch on a few of the common themes that emerged in Members’ contributions. The issue of surface markings was raised by many Members and I can confirm that the code of practice should look at that, along with signage—the size, the things that should be included on signs and where they are located in car parks. Again, that is a common-sense measure.

Consideration and grace periods was another issue picked up on by many hon. Members. We heard examples of Members and their constituents being taken advantage of. Ensuring there are sensible periods to allow someone to come into a car park, decide whether they want to park and then leave again without charge, and to allow them when they return to be able to pay for their ticket, get to their car and leave are sensible measures that the code of practice will examine.

We heard a lot about the legal status of private penalty charge notices and the confusing nature of private companies using that legal language. I confirm, again, that the code of practice should and will look at that, as well as the language and information that should be included on those private parking notices, as we should perhaps call them. This could include the contact details for the parking operator, clear information about the appeals and the challenge process, timescales for payments and the details in relation to the breach of contract, so that no threatening or misleading language can be used in relation to the terms of the situation that the parker has found themselves in.

Fines were a topic raised by many Members. Of course it is sensible that there should be some element of fines, but those should be reasonable. I have heard and taken on board the suggestion from hon. Members about linking them in some way to local authority fine rates, which are already in existence. That idea definitely has merit and we will continue to explore it with the team. My hon. Friend the Member for Bexhill and Battle (Huw Merriman) raised the issue of railway parking. As he knows from his time in the Department, railway parking is governed by separate rail byelaws. Obviously, our constituents are not aware of that, so we are working with the Department for Transport to see whether we can find consistency between the various different regulations.

I hope hon. Members will remain convinced of our commitment to bringing this legislation into force as soon as practicably possible. Of course we all join in congratulating my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) on his diligent and valiant efforts in this regard. In conclusion, I hope hon. Members can join me in thanking my team. A small team has been working on this incredibly important issue for many months. They have done a fantastic job and I am sure that they will continue to make us proud as we bring this legislation to bear.