DVLA and Private Car Parking Companies

Jacob Rees-Mogg Excerpts

Tuesday 21st March 2017 Westminster Hall

[Graham Jones (Hyndburn) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Dorries. I am delighted to have the opportunity to speak, having received several heavy mailbags from constituents about private car parking companies in my area. I am grateful to the hon. Member for Torbay (Kevin Foster) for securing the debate and for all his work on the subject. He gave an excellent speech.

For too long, cowboy private car parking companies have operated with impunity. Many have reasonable practices, but a considerable number operate in a way that is not conducive to holiday resorts, as several hon. Members have said, or to town centres, as the hon. Member for East Renfrewshire (Kirsten Oswald) mentioned, and that is certainly not in the best interests of motorists or the community in general. Without any substantial legislation or regulation, those companies have been free—to be fair—to rip off car park users and charge bogus fees. In my view and that of the British public, it is time to act. The reality for far too many motorists up and down the country is that people are duped into false charges and harassed by firms that, as has been mentioned, somehow manage to get hold of personal information, whether through the DVLA or other sources.

A considerable number of constituents have written to me asking what can be done to tackle private parking companies, because they have found themselves powerless. Presented with a process that is not transparent but opaque, people have no clear way to resolve problems. I will draw attention to examples from my constituency before suggesting what to do to tackle the scourge. I, too, will name some of the companies involved, but that is because they have been named every week in the Accrington Observer and the Lancashire Telegraph, so I am not bringing anything new to the public that has not been said previously. I am repeating it for the benefit of the House and the Minister.

Eastgate is a big retail park in Accrington. Back in 2012 much anger and frustration was caused for hundreds—I mean hundreds—of people when its private car park operator, Excel, misled them about its parking charges. I recall having to deal with that as the local MP for week after week. Excel changed the three-hour parking limit to 90 minutes without any clear warnings. The firm announced its new policy on signs hidden behind trees on the edge of the car park. It then issued hundreds of fines to shoppers, with demands for immediate payment or even higher fines once they had understandably failed to spot the notices. Some disabled people were also caught out by the changes, and they threatened court action with the help of the National Motorists Action Group, which was very helpful—I would recommend the group to anyone fighting pernicious private parking companies which operate such voracious policies.

The National Motorists Action Group, the local councillor in charge Clare Pritchard and I had a running battle with Excel about changing its policy. The issue was a difficult one and it bounced around the press for weeks and weeks, before the company finally changed—in fact, Excel was fired by the management company. One of the complications was that the retail park owners had not only let some of the units on the site to businesses, but let the parking contract to a management company which had sublet it to the private car parking company.

After that battle, we ended up with Excel deciding that anyone who had not paid was to be let off—the fines were rescinded, and there was no need for people to pay—but it refused to give refunds to those who had done the right thing and paid the fine, even those who had been threatened multiple times. Excel got away with that. I ask the Minister, how can some people have their fines rescinded because they have not paid and others pay but never receive a refund? What does that say to the British public? That is totally unacceptable.

Another car parking company operates at the Accrington Arndale shopping centre. I receive dozens of complaints about some of its practices, with people being fined for whatever little reason, such as being even an inch over the line or five minutes past the time limit. I draw the Minister’s attention to that—surely under the Disability Discrimination Act 1995 and so on some latitude is allowed to some of our constituents in such a position—and to how the appeals process does and does not work. Going back to Excel, NMAG and a disabled constituent of mine had to go through the courts to seek redress, which is unacceptable.

Another cowboy private company has already been alluded to by Members, and a more recent issue is that of the new buttons on the machines in some car parks. I have had several complaints about a company operating such machines. For example, an elder constituent told me that he had been fined and he had lost his appeal. He is fortunate that he has an appeals process, although he did not win it. He is 81, I think, and he had to bend double to see the buttons. The screens and buttons are at a low height and, on a sunny day, he was unable to bend down sufficiently to enter the information accurately. He tried and, most of the time, succeeded, but on the occasion in question he put the wrong digit in. He explained that he had paid for his time in the car park—he had the ticket—but the company was not interested. He was forced to pay the fine.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Is the hon. Gentleman aware that had the car parking operation been a public one, an honest mistake would have been a complete defence? That has been established at the High Court in relation to the congestion charge.

[Graham Jones]

I appreciate that valid point. We are talking about private car parking companies in private car parks, and not about statutory or public car parks, which are not part of the debate. We are talking about the practices of some companies outside any firm regulations or guidelines. I will address the point about that difference in a minute.

One lady could not buy a ticket from the machine at that car park because it was broken. She still ended up with a fine, even though she left a note on her windscreen to say that the machine was broken. The company has been mentioned already, so I will do so again—I have no shame in naming such companies, because they need to be shamed. ParkingEye was also mentioned by the hon. Member for St Austell and Newquay (Steve Double), and it operates that particular car park on the edge of my constituency. I find that practice abominable. She put a note on her windscreen, which should be sufficient if the machine is broken. That £1 parking charge quickly became £100 because of the firm’s own administrative incompetence and failure to fix the machine.

As I say, other constituents have come to see me about that particular car park. One was an elderly gentleman who could not bend down to see the screen and, on one occasion, entered a wrong digit. Giving a fine for that is totally and utterly unacceptable. Members on both sides of the Chamber who have spoken, and probably all Members of the House, are well aware of such scandals in their constituencies. This issue is not unique to my constituency or coastal constituencies—it seems to happen in all our constituencies all the time, up and down the country.

Although private car parking companies were barred from wheel clamping by legislation, they seem, as other Members have intimated, to be in the game of trying to find new ways to extract money from motorists, perhaps to make up for some of their old practices having been barred. One gripe that all Members have mentioned is that, under the Road Vehicles (Registration and Licensing) Regulations 2002, the DVLA provides information to those car parking companies. Actually, I believe that they can purchase it—according to NMAG, the DVLA sells information, which is worrying. That practice should end, and there should be better regulation. Those companies access that information and then pursue motorists. I am deeply concerned about that relationship, and the Minister ought to look at it, because it is not right.

--- Later in debate ---

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

May I say what a pleasure it is to serve under your chairmanship in this important debate, Ms Dorries? I thank my hon. Friend the Member for Torbay (Kevin Foster) for bringing it forward, because many of our constituents have complained about what is going on in the parking field. I also thank the Minister and his predecessor for their many courteous replies to the letters that I have written.

The DVLA is at the heart of this issue, not the Department for Communities and Local Government or other bodies. It is the DVLA giving out information that begins this whole unfair process, so the buck stops with the DVLA and the Minister, not with other people or regulations. It is the DVLA that has decided that it will accept accredited trade associations and give out information to them, subject, apparently, to audits that it carries out. It would be useful to hear about what audits have been done.

My hon. Friend the Member for Torbay mentioned Premier Park. I have no qualms about mentioning businesses without telling them in advance. There is no convention that we should be expected to do that, and we should be wary about limiting our right of free speech in this House. Premier Park behaved quite disgracefully to a constituent of mine and has a reputation for doing so at a place called Popham Diner, which local newspapers have written about. Has the DVLA audited that company? Has it looked into it? Has it, in response to complaints from Members of Parliament, gone beyond the accredited trade association to see what is going on?

The Government are at the heart of this matter, because it is about the principles on which our society is founded and what the Government are there to do. One of the great roles of the Government is to ensure justice and make it impossible for the strong and the powerful to bully the weak and the powerless, but the DVLA is party to helping the strong and the powerful to bully the weak and the powerless. It just says that these accredited trade organisations are, broadly, enough, but those organisations have a vested interest in approving the bodies that sign up to them, because that is where their revenue comes from. The last thing that one of those bodies wants to do is to penalise a parking company that is signed up to it, because if it does, other companies will not sign up and its revenue stream will be threatened. There is a clear conflict of interest.

To my mind, that is where the DVLA is not doing its job, because it is not protecting individuals against those who are more powerful. That is where it should change, and that is where the answer to the problem is. The DVLA should do its own approval of organisations and have its own code of conduct. The fee it charges may cover all of that—it is not unreasonable to charge a fee if you are doing the job properly and there is no vested interest. That work should be done properly by a Government body.

The law is there to protect us. This is essentially a system that is outside the law but to which the Government are party. It is not a legal process, but, as other Members have said, it appears as if it is. It appears to be the same as a fine from a local authority, but it is not. In my experience, the local authorities behave much more reasonably than the private companies. Yesterday, I had a letter from Bristol City Council, which is behaving extremely well to a constituent of mine, erring on the side of leniency to someone who made an honest mistake. The private companies do not seem to do that because their business model is otherwise, and the DVLA is party to that.

[Steve Double]

Does my hon. Friend agree that, where local authorities lease car parks to private operators, the local authority should take a more active role in insisting that those operators work in a way more similar to that of local authorities?

[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.

--- Later in debate ---

[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.