Drivers could face $50-an-hour parking with this latest proposal — will you be affected?
- Replies 9
Parking costs have long been a source of frustration for motorists, but recent developments could see this issue reaching new heights.
What’s behind the rising concerns, and what could it mean for drivers across the country?
Let’s take a closer look at the situation and the potential impact it could have on your wallet.
Aussie drivers could be hit with parking fees of up to $50 per hour if a proposed merger between two of the country’s largest parking operators, Orikan Group and Duncan Technologies, goes ahead.
This prospect has raised concerns among experts and Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC).
Orikan Group has lodged a proposal to acquire Duncan Technologies, a move that industry insiders warn could significantly drive up parking costs.
Together, the two companies dominate parking services across Australia, operating most of the parking meters and providing management applications for parking facilities.
Saxon Hill, from Vehicle Monitoring Systems, which supplies technology to Duncan Technologies, expressed alarm over the potential implications.
‘Orikan account for about half of all local council contracts, while Duncan takes up about a quarter,’ Mr Hill said.
‘If these two entities are merged, it will be just like supermarkets, toll roads and airlines when one entity gets a stranglehold, and there is no natural competition.’.
He further explained that the acquisition could exacerbate motorists' existing parking frustrations, as they struggle to find affordable parking.
‘Those meters that are preset at $10 and motorists have to keep pressing to get it to what they want, but if you think it’s bad now, wait until these two dominant companies merge,’ he said.
The ACCC echoed these concerns. Commissioner Dr Philip Williams warned that the merger could stifle competition and discourage innovation in the parking industry.
‘We are concerned that the proposed acquisition would substantially lessen competition in the market for end-to-end on-street parking solutions as Duncan is the primary competitor to Orikan,’ Dr Williams said.
‘We consider that the proposed acquisition is likely to lead to less competitive tender responses to local councils seeking on-street parking solutions and reduce innovation.’
Orikan has contracts with state governments and local councils across Australia and New Zealand, while Duncan Technologies manages parking meters and provides software and infringement systems.
The ACCC, which first received Orikan’s proposal on 19 April, had initially planned to deliver a decision on the matter by 5 December but has now pushed this date to 19 December.
The parking, payment, and enforcement industry in the country is worth an estimated $4.5 billion annually.
A recent report by real estate group Ray White highlighted the steep costs already faced by motorists.
Brisbane drivers pay the most at $79.83 per day, followed by Sydney at $77.67 and Melbourne at $67.49.
If the merger proceeds, experts warn that these costs could climb even higher, leaving Australian motorists with fewer affordable options.
While some motorists worry about parking fees, others are finding unique ways to handle their frustrations.
In a previous story, we talked about how Aussies are tackling parking woes. Click here to find out more!
Should tighter regulations be in place to prevent skyrocketing fees, or is this just the cost of convenience? Share your thoughts in the comments below.
What’s behind the rising concerns, and what could it mean for drivers across the country?
Let’s take a closer look at the situation and the potential impact it could have on your wallet.
Aussie drivers could be hit with parking fees of up to $50 per hour if a proposed merger between two of the country’s largest parking operators, Orikan Group and Duncan Technologies, goes ahead.
This prospect has raised concerns among experts and Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC).
Orikan Group has lodged a proposal to acquire Duncan Technologies, a move that industry insiders warn could significantly drive up parking costs.
Together, the two companies dominate parking services across Australia, operating most of the parking meters and providing management applications for parking facilities.
Saxon Hill, from Vehicle Monitoring Systems, which supplies technology to Duncan Technologies, expressed alarm over the potential implications.
‘Orikan account for about half of all local council contracts, while Duncan takes up about a quarter,’ Mr Hill said.
‘If these two entities are merged, it will be just like supermarkets, toll roads and airlines when one entity gets a stranglehold, and there is no natural competition.’.
He further explained that the acquisition could exacerbate motorists' existing parking frustrations, as they struggle to find affordable parking.
‘Those meters that are preset at $10 and motorists have to keep pressing to get it to what they want, but if you think it’s bad now, wait until these two dominant companies merge,’ he said.
The ACCC echoed these concerns. Commissioner Dr Philip Williams warned that the merger could stifle competition and discourage innovation in the parking industry.
‘We are concerned that the proposed acquisition would substantially lessen competition in the market for end-to-end on-street parking solutions as Duncan is the primary competitor to Orikan,’ Dr Williams said.
‘We consider that the proposed acquisition is likely to lead to less competitive tender responses to local councils seeking on-street parking solutions and reduce innovation.’
Orikan has contracts with state governments and local councils across Australia and New Zealand, while Duncan Technologies manages parking meters and provides software and infringement systems.
The ACCC, which first received Orikan’s proposal on 19 April, had initially planned to deliver a decision on the matter by 5 December but has now pushed this date to 19 December.
The parking, payment, and enforcement industry in the country is worth an estimated $4.5 billion annually.
A recent report by real estate group Ray White highlighted the steep costs already faced by motorists.
Brisbane drivers pay the most at $79.83 per day, followed by Sydney at $77.67 and Melbourne at $67.49.
If the merger proceeds, experts warn that these costs could climb even higher, leaving Australian motorists with fewer affordable options.
While some motorists worry about parking fees, others are finding unique ways to handle their frustrations.
In a previous story, we talked about how Aussies are tackling parking woes. Click here to find out more!
Should tighter regulations be in place to prevent skyrocketing fees, or is this just the cost of convenience? Share your thoughts in the comments below.
.png){kind=icon}
