LANCASHIRE'S controversial Parkwise parking enforcement scheme is to be scrapped after officials admitted it would never break even - despite pulling in £10million in fines.

The decision was taken after new projected figures showed that the scheme would be almost £1million in the red at the end of the five-year contract with national parking firm NCP, which runs it.

And that is despite the fact that motorists have constantly complained about over zealous wardens ticketing them for no good reason.

An audit is now being carried out to discover why the cost to taxpayers of handing out a ticket is often more than the £30 penalty paid by most drivers - and who should foot the bill.

Critics have said that it was "ridiculous" that the scheme was not breaking even, despite making so much money from motorists.

And bosses admitted that administrative costs had "strangled" it - in some areas the average cost of processing a parking ticket is more than £50.

Hyndburn council leader Coun Peter Britcliffe, who has repeatedly tried to withdraw his council from the agreement, said: "It's the worst scheme we have been involved in.

"Nobody seems to know who's responsible for what. The fact they can take millions of pounds and still not break even is absolutely farcicle."

The Parkwise partnership between Lancashire County Council and local borough and district councils has taken in £10million in fines in the three years since its launch in 2004.

Officials believed that problems which led to initial loses would be ironed out and that the scheme would break even But a £900,000 black hole is now forecast for 2009, when the five-year contract for the scheme expires.

Councillors were yesterday warned Parkwise's finances were "neither sustainable nor tenable".

Coun Tony Martin, who is in charge of highways at Lancashire County Council, said: "You normally get £30 for a ticket - if it costs more than that to process it you are going backwards.

"If it's costing £40 to issue a ticket you're probably best off not issuing a ticket at all.

"When we first set it up it was going to wipe its own feet.

"But if anything the deficit is getting worse."

He added: "Everyone was operating with the best intentions.

"It was a brave experiment, but it hasn't worked and we won't continue to do it after 2009."

Parkwise was formed in September 2004 when control of parking enforcement passed from the police to local councils.

Lancashire County Council controls the roads, and the district councils are in charge of their own car parks.

A deal was struck - with county hall leading the way - to enforce all parking throughout the county, except in Blackburn with Darwen, which controls its own highways.

Apart from in Ribble Valley, which employs its own wardens, car parking company NCP centrally recruits all the Parkwise traffic wardens, who all wear the same uniform.

But it is thought that the complicated infrastructure has led to hefty overheads.

As well as a central office in Preston, which stores all the information on tickets given out and handles appeals, each district council has its own set of administrators.

These teams control where and when wardens patrol the streets, and decide the balance between on and off-street enforcement.

Coun Martin added: "All this has happened because there are 13 sets of administrators, and admin costs are strangling it.

"At the start everyone was keen to have a team on their own particular patch."

Two options are being considered for the future - handing control of parking enforcement back to separate councils or passing all car parking over to a private firm.

But the most likely move will be to a two-tier' model, with county hall patrolling the streets and district councils looking after car parks.

Yesterday county councillors grilled Parkwise manager Paul Riley and the county's head of traffic and safety Vali Birang, who admitted the current model was not sustainable.

They said it was never intended to make a profit from the scheme, but it was supposed to break even.

Blackburn with Darwen Council leader Colin Rigby said the borough, which runs its own parking enforcement, was not making a loss.

He added: "The bottom line is someone got their sums wrong at the outset.

"The county council should have done it in house.

"I am quite happy we are out of it."