$440m in parking profits

Auckland Council will earn $440 million profit from parking charges over the next 10 years - an amount described by mayoral candidate Vic Crone as akin to a ‘‘corporate sized profit’’.

The money is not clearly reported in the council’s Long Term Plan budget for 2015-2025, instead pocketed away as an amount that contributes to lowering ‘‘general rates’’ for Auckland residents.

Mayoral candidate Vic Crone says it is not clear where this redistribution of parking revenue is actually going within council’s budget. It is not included under council’s declared ‘‘surplus of operating funds’’ from parking.

Auckland Transport (AT) media relations manager Mark Hannan said some of Auckland Transport’s parking revenue goes into reducing rates, but did not elaborate on the numbers.

‘‘The revenue from Parking Services directly contributes to the council’s ability to maintain lower rates to Auckland ratepayers,’’ Hannan said when contacted.

He also said, parking prices were not set to maximise revenue ‘‘otherwise we would charge the same as Wilsons and other providers’’.

‘‘Lower levels of enforcement or revenue would also mean rates would have to rise to compensate.’’

But Crone said: ‘‘It only costs about $360m to operate these parking services, leaving it with a tidy surplus of around $440m over ten years.

‘‘For council to make a profit of that much is not a public service, it’s a corporate profit.

‘‘We are rorting people in terms of parking, that’s not the purpose of council.’’

AT said there had been a considerable increase in demand for parking over the past three years, with average peak occupancy in central Auckland rising from 73 per cent in 2013 to 88 per cent by last year.

Auckland Transport tripled its parking charges on city fringe streets in June this year. In some places around the city fringe streets parking for an eight-hour day is set to go up from $16 to $43. Crone said she would look to change the situation if elected mayor.

‘‘Any surplus from parking revenue across the city will be put into an investment fund.’’