A fraud which has been costing Oxford City Council up to £30,000 a year looks set to end with the introduction of four new ticket machines at Worcester Street car park.

Members of the council's executive board are being asked tomorrow to approve the payment of £27,200 for the machines, which would prevent a gang taking advantage of a loophole in the ticketing arrangements.

Councillors will be told that the fraudsters are now operating a similar system at the underground car park in Gloucester Green, and the situation is being monitored.

After 6.30pm at night, motorists can park at Worcester Street for £1.20 until 8am the following morning -- but the fraudsters are asking for drivers' tickets as they leave the car park in the evening -- then reselling them. Graham Smith, the business manager in charge of the council's car parks, said in a report that the gang also appeared to be helping drivers avoid paying parking tickets.

He warned: "There is evidence that these tickets are now being sold to people who have received a penalty notice in the car park.

"If a current valid ticket is produced by one of these individuals the penalty is cancelled.

"Every one of these transactions costs the council a minimum £40 in lost penalty income."

The new machines will beat the problem by asking motorists to punch in their car registration numbers, ensuring that the tickets cannot be transferred. The machines, which could be installed within months, will also be able to accept bank notes as well as coins.

Cllr John Goddard, the executive member with responsibility for the city centre, said: "We are not prepared to put up with this any longer. I hope the new machines will be installed as soon as possible, although it might take a few months."