Fears of parking cost spike as company merge decision looms

Plans by two of Australia’s biggest parking and payment operators to join forces — potentially meaning an end of free parking in some of Sydney most popular spots — have hit a roadblock with ACCC issuing a “statement of concerns”.

Plans by two of Australia’s biggest parking and payment operators to join forces have hit a roadblock with the national competition regulator on Thursday issuing a “statement of concerns”.

Opponents to the plan by Orikan Group to acquire Duncan Solutions warned motorists from Bondi Beach to the suburbs would face higher fees and charges for parking should a “monopoly” be allowed.

The Australian Competition and Consumer Commission (ACCC), which had been asked to rule on the proposal, on Thursday agreed the acquisition could “substantially lessen competition”.

The regulator was also concerned that the proposed acquisition might enable Orikan to prevent rival providers of stand-alone parking services, such as on-street parking meters and enforcement and infringement systems, from competing effectively for local council contracts.

As Duncan was Orikan’s “primary competition” in the market for end to end on-street parking solutions, the proposed acquisition could lesson competition, ACCC Commissioner Dr Philip Williams said.

“We are concerned that following the acquisition, Orikan would have the ability and incentive to prevent or limit the integration of third-party products with their own central parking management systems,” he 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.”

Before making a final decision, the ACCC has called for submissions on its statement of concerns by December 19.

Orikan is regarded as one of the nation’s parking giants and payments giants with contracts with state governments and local councils across Australia and New Zealand.

Duncan also provides parking solutions in Australia and other countries, including supply and maintenance of parking meters, enforcement software and processing of infringements.

With the ACCC to make a decision by December 5, concerns have been raised as to whether a “monopoly” would lead to higher fees and charges for motorists.

$50 an hour: Why you could be paying more to park at the beach

Motorists have been warned of having to pay more for parking should two of the nation’s biggest parking and payment operators join forces.

There are also concerns free parking spots in some of Sydney’s most popular tourist spots could also disappear should the national competition regulator this week give the proposed acquisition a greenlight.

The Australian Competition and Consumer Commission (ACCC) has been asked to assess whether to allow major industry player Orikan Group to acquire Duncan Solutions.

Orikan is regarded as one of the nation’s parking giants and payments giants with contracts with state governments and local councils across Australia and New Zealand.

Duncan also provides parking solutions in Australia and other countries, including supply and maintenance of parking meters, enforcement software and processing of infringements.

With the ACCC to make a decision by December 5, concerns have been raised as to whether a “monopoly” would lead to higher fees and charges for motorists.

An ACCC decision out tomorrow on a merger that would create monopoly that could determine whether parking double at some of Australia's most popular family spots. Picture: NewsWire / Nikki Short

Crows Nest resident Simon Berry, who took on North Sydney Council over a sneaky “service” fee on a payment app, said motorists should simply pay the time they stayed.

Mr Berry only learned of the fee after he went to pay, with the total cost being $7.47 rather than the hourly parking rate of $6.90.

The Orikan-run PayStay app is used across North Sydney at an estimated 180 parking metres.

Mr Berry was supportive for the Service NSW Park’n’Pay app, which he claimed did not include any hidden fees.

“People should only pay for what they use,” he said.

Australia’s parking, payment and enforcement industry is valued at around $4.5 billion.

Saxon Hill from Vehicle Monitoring Systems - which offers technology to Duncan - said the removal of competition in the sector via a merger of two of the biggest players meant a trip to the beach or the park could end up costing “up to $50 an hour”.

“Orikan account for about half of all local council contracts, while Duncan take up about quarter,” he 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. The market ends up being dominated by a gorilla - everything just becomes more expensive.

“It is already frustrating to park as it is. 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.

Prices could go as high as $50 an hour to park at a beach or park. Picture: Brendan Radke

Mr Hill acknowledged his business - which supplies parking sensors to Duncan - could also be impacted by the merger.

The ACCC declared its findings could be a final decision or the release of a “statement of issues”.

A source familiar with the parking operators claimed council signed up to any charges once chose the successful tender.

A spokeswoman for Orikan said it was unable to comment on regulatory processes.

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