Parking charges in Dublin City Centre may rise by up to 10 per cent from next summer.

Charges in the council’s yellow and red zones, the most expensive on-street parking areas in the city, are set at €2.90 and €2.40 euro per hour respectively. The increases would put the yellow zones, areas of very high demand, at €3.20 and the red zone at €2.60.

The proposed increases are contained in the city’s Draft Revenue Budget for 2019 and are due to be debated by councillors next Monday.

Council officials said there had not been an increase in parking charges since 2008. It said a survey of 18, privately operated, off-street car parks carried out last month showed the average hourly rate of €3.38.

The draft budget notes that in a full financial year, the increases would generate additional income of €3 milion, all of which will fund transport related services.

However, the council is proposing to introduce the increases for just half of 2019, starting in July and netting €1.5 million in 2019.

The yellow zone covers an area from the Dorset Street, North Frederic Street Street junction at its most northern point, to Ballsbridge at its most southern point.

It runs from roughly Merchant’s Quay at its western extremity to the Custom House in the east.

The red zone is the next band outside that and extends to Phibsboro in the north city and to Donnybrook on the southside.

Chairman of Dublin City Council’s strategic policy committee on transport Ciarán Cuffe said the increase should be undertaken with the introduction of parking charges in all out-of-town shopping centres to protect city centre traders from “unfair” competition.

Mr Cuffe said he believed Liffey Valley shopping centre, for example, offered free parking which was unfair to city traders.

He also said the availability of on-street parking should not be so great so as to discourage walking, cycling and taking public transport.

“We have not had a formal report on the impact of the proposals but I think it may be possible to raise it at the strategic policy committee on Wednesday” Mr Cuffe said.

Dublin City Council’s annual report for 2017 noted “on-street parking availability for people driving into the city is recognised as an important resource and a regular turnover of spaces is seen as vital in encouraging visitors, shoppers and leisure users into the City”.