Hypothecation of fines

Hypothecation of traffic camera fines to road safety

ACRS Policy Position

Revenue from traffic camera operations should be directed into new road safety initiatives

Objective

To return money obtained from the public through fines for traffic camera offences (speed and red light cameras) to benefit road users.

Discussion

Substantial amounts of money are raised by State and Territory governments each year through fines for traffic camera offences.   For example, $95 million was paid by Victorians in traffic camera fines in 2001.   The amount raised increases each year.

Given that resources for road safety improvements normally have to compete with other equally pressing needs in State budgets, directing proceeds of traffic camera operations would overcome some of the road safety related funding deficit without affecting other government revenues.

Some jurisdictions already do this.   The Queensland Government enacted legislation in 1996 requiring that all funds raised from traffic camera fines be directed into road safety education and awareness, road crash injury recovery initiatives, or funding road improvements.   Western Australia has legislated that one third of all the revenue raised from speed and red light camera fines be directed to a road trauma trust fund, which is allocated to additional road safety programs and initiatives.   The South Australian Government has indicated that some money from camera offences will be directed to road safety initiatives, although legislation has not yet been enacted.

There are analogous examples in other fields.   For example, it is common for the proceeds of recreational fishing licences to be directed to fisheries management, stocking programs, waterway rehabilitation and restoration, research and the like (NSW, Victoria and Tasmania).

Specific criteria need to be set so that the funds so obtained are applied to best effect.   Also there needs to be safeguards to ensure that the additional funding obtained from traffic camera operations is not offset by reductions in main line budget funding. Ways of ensuring this might include:

-          ensure that the hypothecated funds do not go to the source agency

-          set up a special fund into which traffic camera proceeds are paid

-          make sure that there is political independence and transparency in the administration of the fund

-          avoid expenditure on activities that may be seen as core business by a particular agency (because if the fund is, for example, treating blackspots this removes the burden for this activity by the agency that already funds this program).

Consideration needs to be given to the kinds of works and programs that should be funded from traffic camera revenues, to ensure that they are spent in the most productive and effective way.   It is probably not appropriate for funds to be applied to the purchase and operation of traffic cameras, for example.   However, useful and appropriate allocation of funds could be to:

·         Road improvements, especially to 'black spots'.   However, road improvements funded from traffic cameras should be directed to additional necessary works that cannot be funded from normal road construction and maintenance budgets, and should not replace normal budget allocations for road funding

·         Funding staff and resources to enhance capability to carry out road safety audits

·         More overtaking lanes on two-lane rural roads, and such works as improving road geometry and removing hazards on roads other than main highways that are otherwise poorly funded

·         Upgrading and creating more frequent rest areas, to encourage people to stop and take a break

·         Improving hazardous intersections and areas of known traffic conflicts, especially in urban areas

·         Public education and promotion, especially with respect to known problem areas such as alcohol and road use, seat belts and fatigue

·         Road safety research, especially identified research needs that cannot be funded otherwise, 'exploratory' research into the nature and scope of problems; research grant programs, and so on.

·         Study scholarships for road safety professionals.

This should not be seen as a definitive list.   The aim of redirecting traffic camera fines in this way should be to fund necessary or desirable activities that cannot otherwise be funded.   The direction of the funds should probably be determined through some form of consultation process, and reviewed regularly together with a review or audit of the effectiveness with which the funds have been used.

One benefit would be to reduce the force of a common view that the use of traffic cameras is merely 'revenue raising'.  

The principle of using traffic camera fine proceeds in this way should in no way dilute the principle that speed and red light cameras should be deployed only where there is an identified and documented road safety need.