ACCC probe into Hobart City Council parking meter ‘rip-off’ claim thwarted by technicality

Hobart City Council would have a case to answer over its minimum credit card charge for its new parking meters — but it is exempt because of a technicality, says the nation’s consumer watchdog.

Molly Grey, 18, is frustrated with the one-hour parking meters in the CBD that cost $2 but the minimum credit card payment is $3. Picture: LUKE BOWDEN

HOBART City Council would have a case to answer over its minimum credit card charge for its new parking meters — but it is exempt due to a technicality, says the nation’s consumer watchdog.

Late last year, the council’s decision to impose a $3 minimum charge when using a credit or debit card for parking meter payments was referred to the Australian Competition and Consumer Commission by Tasmanian independent MP for Clark Andrew Wilkie.

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The parking meters offer multiple payment options, including coins, credit cards and the EasyPark app — but card users are charged a minimum of $3 regardless of the parking time required or used.

HCC general manager Nick Heath had said council was absorbing a large portion of fees associated with using credit cards on unsecure devices such as parking meters.

He said the council welcomed the ACCC findings.

“I am pleased that the ACCC has agreed with the external legal advice council received on the minimum charge for payments by credit card,” Mr Heath said.

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The ACCC was asked to investigate whether the $3 minimum charge breached the Competition and Consumer Amendment (Payment Surcharges) Act 2016.

In response to Mr Wilkie’s concerns, ACCC chief operating officer Rayne de Gruchy said the laws applied broadly to private corporations, but they were more limited when it came to government entities.

As such, she said, excessive surcharge provisions did not apply in this case.

“Having said that, we consider that the type of conduct attributed to Hobart City Council would otherwise raise concerns under the excessive surcharge provisions,” Ms de Gruchy said.

Federal independent Clark Andrew Wilkie referred the issue of Hobart parking meter charges to the ACCC. Picture: MATT THOMPSON

Mr Wilkie will today call on the State Government to intervene in the matter. “Tasmanians and visitors alike are being robbed by these excessive credit card fees which, if they were charged by the private sector, would be illegal,” he said.

“I call on the State Government to step in and bring the council into line ... to stop these rip-offs happening in the future.”

Last month it was revealed council’s total revenue for on-street parking would rise by $2.2 million this financial year to almost $15 million, compared to a hike of just $100,000 the previous year. Of that $15 million, it expects to net $8.5 million in fines.