As you know, the Parking Space Levy Act, 1992, became operational on 1 July this year. A key component of the new legislation is that it binds the Crown and, accordingly, all Government agencies are liable to pay the levy. Details of these arrangements were outlined in Premier's Department Circular No. 92-9.

My attention has recently been drawn to the situation where some Government agencies effectively compete with the private sector in the provision of parking facilities. Clearly, there is a fundamental obligation on the part of Government agencies to ensure that their treatment of the levy does not unfairly disadvantage the private sector. As a matter of Government policy, therefore, arrangements should be made by non-commercial Government agencies to pass on the levy to all lessors and any other customers.

On implementation by commercial Government agencies, I consider it essential that they respond to the levy on a commercial basis. In general, this would mean fully recovering the levy from increased fees and charges on all parking spaces. However, I would point out that a number of major city parking stations have imposed a $1 per entry fee on casual parking which will potentially lead to over-recovery of the levy. Let me put beyond doubt that I do not support the imposition by any Government agency of a fee likely to recover more than is required to meet payment of the levy. The additional cost should be absorbed into the overall charge.

I seek your co-operation in this regard and I should be pleased if you could furnish advice by 2 October 1992 to our colleague, the Minister for Transport, outlining the action taken by all Departments and Authorities coming within your administration to ensure that this policy is implemented.

Yours faithfully

John Fahey
Premier