Smart Parking doing just ‘fine’

RAC hits out as firm makes 75% of its revenue from penalty notices

The RAC has condemned the operator of a Perth multi-storey parking site after it emerged that 75% of the firm’s revenue comes from penalty notices.

Smart Parking – which sparked controversy over “confusing” and “overly complicated” changes at its Kinnoull Street facility – has been accused of having “questionable business models”.

The company introduced number plate recognition cameras at the city centre site in 2015. The machines require motorists to input their vehicle registration number, leading to many drivers being caught out if they mistype the letters or digits.

The Daily Mail reported that a presentation filmed by Smart Parking employees this year shows the number of penalties issued by the firm had doubled in a year and makes up three quarters of revenue.

Smart Parking chief financial officer Richard Ludbrook said parking breach notices are continuing to “grow rapidly” and that, in the space of three months, his company had issued more than 91,500 notices.

He said: “Revenue in the parking management division makes up 90% of the group’s revenue – and 75% of revenue in the parking services division is made up of parking breach notices.”

The RAC said some parking companies are known to use “underhand tactics” to intimidate drivers. Head of external affairs Pete Williams said: “The suggestion that they could be making up to 75% of their revenue from penalties suggests they have questionable business models.”

Mid-Scotland and Fife MSP Murdo Fraser, who is in the process of producing a member’s bill to regulate private parking, added: “If you believe the views of industry insiders, the installation of an overly-complicated system is no happy accident. Private parking companies are dependent on revenue from fines and any system that hands out more tickets will naturally push up profits.”

A Smart Parking spokesman said: “As members of the British Parking Association, we abide fully by its code of conduct and operate a clear and fair independently audited appeals procedure.”

Picture: Gareth Jennings. The Smart Parking car park on Kinnoull Street, Perth. The firm said the revenues it makes from car park management “are in line with other car park operators”.