Redflex Traffic Systems and Macquarie Bank - Speed Cameras
Redflex Traffic Systems and Macquarie Bank - Speed Cameras
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I recently watched a segment on Channel Nine's "A Current Affair" in which two
very disturbing facts emerged:
1) There are rumblings about increasing the number of speed cameras by over
2) Macquarie Bank (commonly referred to as the "Millionaire Makers") has made a
takeover bid for the company which operates many of the speed cameras on our
roads (Redflex Traffic Systems).
In light of this, I asked prominent Traffic Lawyer, Peter Proctor who
appeared on the ACA story, to offer his opinion of the situation. I think his views are
Video excerpt taken from an A Current Affair (Nine Network) story in which Peter Proctor was interviewed on 23 March, 2011.
Criminal Justice or Criminal Profits
Following a $300 million takeover bid by Macquarie Bank of Redflex, (the
operators of a large proportion of fixed speed cameras and controllers of all mobile
speed cameras), movements are afoot to increase the number of speed cameras from
144 to over 3000 units.
It is very much an area of dispute as to whether the prevalence of speed
cameras, does in fact reduce accidents on our roads. A recent study in Great
Britain concluded that the presence of speed cameras can in fact increase the
occurrence of motor vehicle accidents rather than reduce them.
So the question then remains - why such a dramatic increase of cameras?
There can be no other conclusion - PROFITS!!
Late last year, the RTA released a contract to Redflex for the provision of
mobile speed cameras. Part of the contract involved the payment of additional
commissions if the operators achieved particular KPI's (Key performance
This created a furore in the media at the time, as one of the KPI's related to
"prosecutability" which was later removed, however, the cameras are now
operating, Redflex apparently is making huge profits and the "Millionaire
Makers" - Macquarie Bank in late February, 2011 launched a bid of some three
hundred million dollars to take over this money making venture. It is expected
that this takeover will take effect in June.
So, what are we dealing with here? A "law and order" issue, the policing of
which, is outsourced to private enterprise. For what purpose you may ask?
Clearly - a money making venture. Why else would Macquarie Bank outlay $300
We have heard reports of an increase in Speed Cameras in the order of 3000
units. This is mind boggling.
We understand that this outfit will own and operate a large proportion of the
State's fixed digital speed and safety cameras, not to mention a monopoly on all
mobile speed cameras, bus lane cameras, vehicle emission cameras and
Already there are huge profits being made with the number of cameras already in
For example, it is reported that the revenue for January, 2010 was $27,716. With
the new additions now in place, there were $1.75 million in infringements sent
out for the month of January, 2011. Safety camera revenue for the period July to
January 2011 was apparently $7.230 million with the capture of 31,175 drivers.
The revenue for fines in the State budget for 2008-2009 was $295 million. The
estimate for 2011-12 is $570 million.
It is not difficult to imagine the profits to be gained by increasing the number
of cameras 20 fold. It will be simply a money making venture at the expense of
the drivers of this State and an outrage to say the least.
Our Criminal Justice system should not be tarnished by commercial
considerations, particularly where such enormous profits are to be made out of
motorist's infractions of the law. Such ventures will surely give cause for
concern as to the integrity of the whole system at large and the possibility for
gross corruption infiltrating it at various levels.
Apparently there is to be a lowering of the speed threshold such that penalty
notices will come into play for the most minor infraction. This will mean that
if a person is over the speed limit to a small degree, there will be no
tolerance and a penalty notice will issue. Further, there is no warning of the
mobile units up ahead
It is not difficult to understand why Macquarie Bank is attracted to such
A 20 fold increase in speed cameras will have an exponential increase in revenue
both for the Government and Macquarie Bank in the years to come - from the
pockets of hard working Australians.
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