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Mr Rees-Mogg
My hon. Friend makes an extremely good point. We want fairness in the process. We must understand that the DVLA has the information in the first place as a legal requirement so that the police may know to whom cars belong. That is why, by law, we are obliged to register our cars. We are not obliged to register them for the benefit of a subsequent private contract, which is a subsequent activity beyond the initial purpose of the DVLA. It was to be there for public interest, not for private contracts. Because of the way in which parking has developed, the DVLA has got involved in this private parking aspect. It earns fees from that, although apparently it is loss-making, which if true seems extraordinarily silly.
The Parliamentary Under-Secretary of State for Transport (Andrew Jones)
indicated dissent.
Mr Rees-Mogg
If it is not true, that is very reassuring; I am glad. However, the fact that that is not true is worrying in another direction, because the DVLA ought not to be affected in its judgment by its revenue streams. If we have an accredited parking authority that gets revenue from the car park, and the car park pays money to the DVLA to get information, there is a chain of money going through, which seems to be overriding the chain of justice and the right of the state, the duty of the state and the obligation of the state to protect the individual.
The DVLA has the solution in its hands, as do the Government. The situation requires not changes of legislation but changes by the DVLA in how it gives out information. I will carry on banging on about this until we know that companies have been suspended, that companies have been audited, that companies are not getting the information any longer and that the DVLA is taking proper charge to protect our constituents.
The Parliamentary Under-Secretary of State for Transport (Andrew Jones)
I congratulate my hon. Friend the Member for Torbay (Kevin Foster) on securing the debate on the disclosure of DVLA data to private parking companies. I welcome the opportunity to discuss a matter that is clearly of concern to him and to his constituents; there is a slight bias towards the south-west, but this is clearly of concern across the UK.
Although the policy on disclosure of DVLA data is of long standing, it is true that management of parking companies and the release of vehicle keeper data frequently generate significant concern. Of course, that is entirely understandable. No one likes to receive a parking ticket, and motorists become annoyed when they are the subject of enforcement action. Many examples have been shared of inappropriate and heavy-handed enforcement action. Motorists often disagree with the principle that DVLA vehicle keeper data can be provided to private companies for such purposes. I should point out that the private parking sector is not regulated by the Government. The Department for Communities and Local Government consulted on this issue in 2015 and is currently considering the approach to any future Government intervention. I am afraid I cannot give the House a detailed time as to when that will be finished.
As it stands, the private parking industry is an unregulated sector in which common law on breach of contract or trespass applies in the relationship between the motorist and the landowner. Drivers who choose to park their vehicles on private land do so in line with the terms and conditions, which should be clearly displayed on signage at the entrance to and around the car park. Those conditions may relate to the need to pay a fee to use the car park and to display a valid ticket, to observe the maximum permitted time for parking or possibly other conditions, such as a stipulation that parking is not permitted at all.
Parking control is necessary to ensure that landowners are able to exercise their legal rights and gain the benefit they are entitled to from the use of their land for that purpose. The use of wheel clamping used to be widespread in the sector as a means of parking enforcement, but was banned in England and Wales by the Protection of Freedoms Act 2012, meaning that that method of enforcement is now effectively outlawed. I am sure that colleagues will agree that, without any form of control, errant drivers could park as they like, breaching reasonable terms and conditions without fear of recourse arising from their misuse of the land. That would obviously have a detrimental effect on the availability of parking spaces for more compliant motorists.
Kevin Foster
To be clear, no one is arguing that there should be no ability to control. Does the Minister agree that the issue is about the heavy-handed enforcement, and the fact that the fines are far above those that local authorities find are perfectly adequate for management and enforcement in their own car parks?
Andrew Jones
I do indeed recognise that. I was just trying to clarify the legal position. My hon. Friend made his case extremely well and has now clarified it again.
The law allows for the release of DVLA vehicle keeper information to those who can demonstrate that they have reasonable cause for requiring it. That provision has been in law for several decades. To receive data, a requester must show that their need relates to the use of a vehicle following incidents in which there may be liability on the part of the keeper or driver. Where a parking infringement may have taken place, it is considered reasonable to provide the vehicle keeper’s contact details, so that the matter can be taken up with the person responsible. Despite the unpopular nature of that process, it is a well-established principle in case law that such enforcement is lawful, as confirmed by the Supreme Court in late 2015.
Despite this being an unregulated industry, and while the law provides for the release of information, the DVLA has strict conditions in place in relation to the disclosure and use of data. The DVLA will only disclose vehicle keeper data to parking companies that are members of an accredited trade association; I will come on to that in more detail in a moment. Such trade associations have codes of practice that are based upon fair treatment of the motorist and require their members to operate to high professional standards of conduct, while allowing reasonable action to be taken to follow up alleged parking contraventions. The codes of practice contain requirements on clear and prominent signage, appeals processes and information that should be provided to motorists on parking tickets. They also contain requirements on the use of automatic number plate recognition cameras, which are expected to be in good working order.
There should be no hidden charges or ambiguity for the motorist as to what is and is not permitted on the land. The codes of practice require that contact with the motorist is not threatening and that parking charge notices are issued promptly, so that the driver can recall the circumstances surrounding the event. A reasonable amount of time must also be given to the motorist to allow payment to be made before any escalation of the matter occurs.
Mr Rees-Mogg
These codes of practice are marvellous, but the problem that has been established in this debate is that they are not followed, and the DVLA is complicit in that.
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.
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.
Kevin Foster
I thank all hon. Members who have contributed to this debate. It has been interesting to hear so many examples from across the length and breadth of these isles. This issue is not localised to Torbay.
Competition is good where it is about services, but we would not suggest having competing magistrates courts. Once upon a time, we did that for the civil courts, and it did not produce a good outcome. The concern of many is that the industry is able not only to mark its own homework but to choose the marker. We need to look closely at that. There are more than 4 million of these transactions. Given the debate we have had today about the cost and the comments made in a House of Commons Library document, based on a Transport Committee report in 2014, I suggest that the Minister places a letter in the Library. It would be helpful if he clarified that point.
Kevin Foster
I thank the Minister for that positive reply and the courtesy he has shown. This issue will continue, and further action is needed. We cannot stand aside and ignore the key role the state plays in handing over details that it compels its citizens to provide to the DVLA and in allowing some of these practices to continue.
Question put and agreed to.
Resolved,
That this House has considered the relationship between the DVLA and private car parking companies.