DVLA and Private Car Parking Companies

Kevin Foster Excerpts

Tuesday 21st March 2017 Westminster Hall

[Kevin Foster (Torbay) (Con)]

I beg to move,

That this House has considered the relationship between the DVLA and private car parking companies.

It is a pleasure to serve under your chairmanship, Ms Dorries. I thank my colleagues on the Backbench Business Committee for allocating this slot for the debate. I was pleased to be joined in my application by the hon. Member for Hyndburn (Graham Jones), who I can see in his place. I am sure that he will follow my remarks with his usual alacrity.

I want to be clear that this debate is not about what is charged in a car park. Normally when we talk about car parking and parking fees, we talk about local councils and the balance between how much is charged for an hour’s parking and the trade that a town centre may receive. This debate is not about that. This is very much about the relationship between a body of the state—the Driver and Vehicle Licensing Agency—and private companies that seek to enforce parking contracts.

If we own a car, we are all required by law to supply the details of the keeper of the vehicle to the DVLA; it is a criminal offence not to. To be clear—because it certainly is not clear in many of the letters that go out if someone is not a lawyer or conversant with this area—this is not about people committing offences, but about when people are deemed to have breached a parking contract. The contract can be on a sign on a wall with quite a lot of small print. Those of us who are skilled in the legal world may be able to understand it—I am sure you would easily read through it all, Ms Dorries—but for most people it is not an easy or digestible read. When people drive in, they are unlikely to see the sign and to read the terms and conditions before they get in the parking space, but they have already been caught on the camera systems that are used to enforce car park contracts, which is what has brought the issue to my attention.

I hope that over the next hour and a half we will consider what we as Members feel about the current system and its relationship with the DVLA and how we think it should change. We must be clear that, if it were not for that relationship and the DVLA’s ability to get hold of the keeper’s details, many of the issues brought to me, and I am sure to other right hon. and hon. Members, would not exist, because it would not be possible to enforce this in the way it is being enforced now.

I also want to be clear that the next hour and a half is not about portraying every private car park operator as a rogue operator. Most, but not all, operate good-quality car parks at a reasonable price and use methods of enforcement that are perfectly fair and reasonable. However, some need to be tackled.

What first brought the issue to my attention were two car parks in my constituency: the Crossways shopping centre car park in Paignton and the Marina car park in Torquay. The Crossways car park is managed by Premier Parking Solutions of Newton Abbot and the Marina one is managed by a different company, Premier Park. Since my election as a Member of Parliament, I have received complaints about enforcement practices in both car parks. I accept that people are not happy when they receive a fine if they have not paid or for whatever reason, but what stuck out about those two car parks was that the number of complaints I was receiving about them far exceeded the number of complaints I was receiving about the entirety of Torbay Council’s parking enforcement. Given Torbay Council’s parking enforcement covers 39 car parks and all on-street car parking violations, it was noticeable that the two car parks were generating far more complaints than I was receiving about the council’s entire operation.

Issues raised with me included everything from unclear signs to bad lighting. There was a day when a particular letter or number was not working on the keypad, which meant that everyone with that particular letter or number in their registration found themselves getting a letter a few weeks later. Also, I started to get letters from colleagues complaining about the car parks concerned when their own constituents had visited Paignton or Torquay on holiday, looking to enjoy themselves, and had had a nasty surprise that would encourage them not to come back.

Parliamentary privilege is a great right, but also a responsibility, so we alert individuals or companies when we are thinking of referring to them. I wrote to both the companies concerned. To give Premier Parking Solutions of Newton Abbot, which runs the Crossways car park, its due, last Friday, I had its managing director, general manager and business development manager come to see me to discuss the various issues that had been raised about their car park. They listed a range of things that they feel will deal with the matters raised and complained about. I will obviously look for the proof in the pudding and see whether complaints decline. I accept that there will always be the odd one, but I certainly hope that we will see the back of some of the complaints and issues that I have seen so far.

The other company, Premier Park, decided not to give any form of detailed reply. Given the sheer number of complaints I have had about the Marina car park, which is a car park you drive into without realising exactly what you are entering, suspicions have been raised. Even when told that it was likely to be discussed under parliamentary privilege, the company was not particularly interested in engaging, and also did not engage with BBC Radio Devon this morning, so that creates real suspicions that it is looking to run a business model based on catching people out as much as on what it charges in the car park. That gives rise to suspicions that this is not a genuine parking enforcement operation intended to stop people chancing their arm—I accept people will do that, so there needs to be some enforcement—but that this is an operation looking to enforce and act in a way that no one would see as conscionable. It therefore says a lot that, even when given a chance to offer a final explanation before being named today, the company did not wish to do so.

If it were just a couple of car parks in Torbay, I would probably view the matter as a constituency campaigning issue and something I could pick up with the local trading standards department. Yet it was interesting to see the number of other issues that started to be raised as I talked to colleagues. I can see colleagues nodding in the Chamber now. I am sure that we will hear more examples during the debate. I looked at the Library and RAC Foundation figures on how many transactions there are between the DVLA and private parking companies. It is estimated that they will exceed 4 million in this financial year, which is a very large increase compared with the position in 2012. When private wheel clamping was banned under the Protection of Freedoms Act 2012, the impact assessment suggested that there would be 500,000 extra requests, which is not a surprise given the change in enforcement techniques, but there has been an increase of nearly 3 million, which highlights the issues.

The DVLA charges companies £2.50, and some information suggests it costs DVLA more than that to process each application. Perhaps the Minister will cover whether the DVLA is losing money in this area, because it would add insult to injury if taxpayers were helping to subsidise the operation.

We have to be clear that these are not fines. However, it is the DVLA’s information—something is sent out that looks like a fine, probably for about £100, which is the maximum, but far above what councils charge. There is no suggestion that councils outside of London need to charge such a fine when people do not pay in the car park. However, that supply of information makes people think it is much more official than it is, and of course it makes it look as though the state supports what is being done. Ultimately, the only source of the information could have been the state, the DVLA, given that there is no other way of getting hold of the registered keeper’s details.

When I started to look into this issue, many Members wrote to me, and I still get letters today about how the system works. Many of them cover the suspicion that automated number plate recognition systems are used as an opportunity, first, to fine people after they have left and, secondly, to make the process easy. For example, someone who drives in, waits to see if there is a space, drives out and ends up getting a fine would not get that fine if there were manual enforcement, because someone enforcing tickets would see that that person was waiting. Likewise, barrier systems do not let a car in the car park unless there is a space. This system is a kind of invisible barrier that can become a nasty trap that the driver finds out about later.

I am clear that there does need to be enforcement. If someone goes into a privately owned car park and plonks their car in a disabled bay, I have no problem with the idea that they receive a significant fine for such antisocial behaviour. However, there are real issues emerging from the system of enforcement that has grown up over recent years.

I have particular questions for the Minister; I will give him time to note them down. Is he content that the current relationship between the DVLA and private parking enforcement companies is appropriate? Does he believe that there should be a single standards setting body? In my investigation of the subject, one aspect I found quite interesting is that there are two such bodies, with similar sounding objectives and appeals processes. Is that a sensible system or should there be one single standards-setting body, over which the Government have more oversight? I would suggest, however, that it is probably more sensible that that be based in and funded and organised by the industry, rather than an “Ofpark”-style body set up directly by the Government.

Does the Minister believe that enough action is being taken to deal with rogue actors and offenders in the industry? Many Members will probably give examples of where they think not enough action is being taken. Although some rogue actors and offenders have been removed, the presence of two different bodies as the accredited trade associations that a company needs to be part of to access the DVLA breeds confusion in the public eye.

Is a response to the 2015 consultation likely to be published? Would we be better to conclude that the Government may take the view that, two years on, it may be better to look afresh at how the DVLA works with private parking companies?

There are some good operators out there providing reasonable car parks at a fair price and some operators charge a premium for a slightly better service. That is a matter for them and for their business. What we need to take action on is the growing scandal where more and more people receive these invoices, which look official and which are able to be issued only because of the active co-operation of a body of the state that gives the information for them to do so. There needs to be a change in that relationship. There need to be clearer and stronger standards and much more transparency in how those standards are set, in exchange for information from the Government.

We got rid of the cowboy clampers in the last Parliament. The suspicion is that the cowboy clampers have now become the cowboy finers and cowboy invoicers. Although they may wish to leave their spur marks on car parks across the country, I hope the Minister will be clear what action will be taken to ensure that they have to ride off into the sunset for good.

--- Later in debate ---

[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 ---

[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.

--- Later in 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.

[Andrew Jones]

I am happy to make that commitment.

[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.