Almost 35,000 people fined for parking in Melbourne’s CBD between 2012 and 2014 will receive a refund.
The City of Melbourne admitted the administrative error, first committed in June 2012, would affect 34,800 drivers who mistakenly received fines even after nominating another driver.
The council has already refunded 16,200 people at a cost of $1.46 million. A further 18,600 drivers who are yet to pay their fine will have the offence withdrawn, a council spokesman said.
The error will cost the council $3.2 million.
It is understood that two staff members kept re-issuing infringement notices for two years – until July 30, 2014 – without realising that their authority to fine people had been revoked.
The spokesman said that affected drivers did not need to contact the council, because all affected had been identified and would be contacted in coming months.
“We will work to refund any fines already paid as soon as possible, but it is a complex process that could take several months to complete,” he said.
“[There was] no doubt the original parking violations occured, and that a valid infringement notice was issued at the time – the administrative error occured in the re-issuing of the infringement.”
Lord Mayor Robert Doyle said: “We at the City of Melbourne have made this mistake. We will withdraw or refund every one of those 34,800 fines.”
The $3.2 million hit to the council’s budget will eat up most of the $4 million surplus left over from the 2013-2014 financial year.
Councillor Stephen Mayne said the council would be able to take the money from a stash of $100 million the triple-A rated municipality has sitting in the bank.
He said it would have no impact on the current year’s surplus, forecast to be $6.37 million.
Cr Mayne, the chair of the council’s finance and governance committee, said he felt for the two council officers who had worked for two years, only to have all their fines refunded.
“It is completely not their fault and we’re not blaming them,’’ he said.
‘‘At the end of the day it is a windfall for those people that parked in the city illegally and can now get away with it.”
Cr Mayne said he and Lord Mayor Robert Doyle were first made aware of the error last week, and on Tuesday night they briefed other councillors in a confidential meeting.
Cr Mayne said it was important council were open and transparent about their mistake.
“You don’t do a Daniel Andrews and duck shove,” he said.
