Parking firms’ profits soar – as drivers suffer
Millions made by ‘aggressive’ operators who target public
‘Trust in sector is woefully low’
PRIVATE parking firms were accused of treating motorists as a ‘cash cow’ last night as they unveiled soaring profits.
The companies – which have faced criticism for overzealous practices – run thousands of car parks at retail parks, motorway service areas and railway stations.
Pre-tax profits at Parking Eye, accused of aggressively pursuing motorists for minor offences, more than doubled in two years, from £6.58million in 2016 to £13.59million last year.
The company’s 3,500 sites include more than ten major hospitals plus car parks at dozens of other NHS premises, as well as shopping centres across the UK.
Charging for parking at NHS car parks in Scotland was scrapped in 2008, leaving only a handful of hospitals still able to charge under the terms of PFI deals.
Hospital parking charges have also been banned in Wales.
But at some car parks in England, Parking Eye has an agreement where the NHS trust keeps all the revenue from parking charges, while the company’s only way of making money is from ‘enforcement’ – and it keeps all the fines.
Another major company, Euro Car Parks, revealed its pre-tax profit went up 70 per cent yearbled on-year from £2.52million in 2017 to £4.28million in 2018.
Parking Eye’s declared revenue also rose substantially, from £31.1million in 2016 to £38.2million in 2017 and £41.7million last year.
Several more parking operators criticised for their treatment of motorists have also unveiled healthy returns.
APCOA, the UK’s largest private provider, which had a turnover of £75.9million last year, moved back into profit after two years of losses. It made £822,198 profit in 2018, compared with losses of £626,565 in 2017 and £1.81million in 2016.
Euro Car Parks runs more than 1,000 sites around the UK. Recent accusations of unfairness include fining a disabled couple for parking in a parent and child space at a supermarket because the disaones were full. It also tried to fine a grandmother £100 for overstaying by 18 minutes – but she complained and it was rescinded.
RAC head of roads policy Nicholas Lyes said: ‘It will come as little surprise many private parking operators are making soaring profits, in part from issuing tickets to drivers.
‘Reports of over-zealous enforcement, confusing signage and aggressive behaviour of debt collection agencies mean that drivers’ trust in the sector is woefully low.’
In 2018, some 41 per cent of appeals to POPLA, the organisation which handles challenges against penalty charges, resulted in them being cancelled. Appeals to POPLA led to 52 per cent of penalties being cancelled in 2017 and 50.6 per cent in 2016.
Andrew Pester, chief executive of the British Parking Association (BPA), which represents private parking firms, said: ‘We advocate that charges be reasonable and reflect availability and demand, as well as the inclusion of a concessionary system as appropriate.’
A Parking Eye spokesman said its profits had grown due to expansion of the business.
He said: ‘Parking Eye operates a large number of car parks across the country and its client base has grown considerably over the last three years.
‘We have always been a member of the BPA and follow its strict code of practice in all car parks we manage on behalf of our clients.’