The RAC has condemned the operators of a controversial Perth multi-storey parking site after it emerged that 75% of their revenue came 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 for mistyping the letters or digits.
In some cases, people have been caught out by entering the letter O instead of a zero, meaning their payment was not recognised.
The Daily Mail has reported that a presentation filmed by Smart Parking employees earlier this year, showed that the number of penalties issued by the firm had doubled in a year and now makes up three quarters of revenue.
Smart Parking chief financial officer Richard Ludbrook said parking breach notices were 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 were 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 per cent 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 Members 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 spokesman for Smart Parking 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.”
He added: “The revenues we make from car park management are in line with other car park operators.”
