IT issues thousands of parking fines a year, often while parked on double yellow lines itself.

Bolton Council’s CCTV car has special dispensation from the Department for Transport to park “illegally”

while enforcing parking guidelines.

But it has enraged motorists who say the council should be leading by example.

They also claim the vehicle is “money making” by targeting drivers stopping for a few seconds at cashpoints.

"Now an organisation which has the power to quash fines, has published a report criticising the use of the car. The Joint Report of the Parking Adjudicators for England and Wales says the car should only be used where traffic wardens cannot operate. It adds that there are too many examples of successful appeals by drivers where enforcement by camera was found to be wrong.

The local authority has defended the use of the car, which it says helps to ease congestion and increase safety.

Government guidelines say CCTV should only be used where use of traffic wardens would not be practicable.

The Parking Adjudicators report says Bolton, along with three other councils — Basildon, Medway and Wirral — had taken the lead on the use of the Smart Cars.

But it adds: “The council should be able to explain why it was appropriate to enforce by camera rather than by a civil enforcement officer. There are examples of successful appeals where enforcement by camera was found to be wrong in principle.” However, a council spoke-sman said: “The parking restrictions enforced by the car are the types of restrictions which are unable to be enforced effectively by on foot Civil Enforcement Officers due to the small amount of time in which the contraventions occur, on areas such as those outside cash machines as well as school keep clear zones.

“Quite often people stopping on parking restrictions for a short period of time cause congestion and put the safety of others at risk. However, as they drive off as soon as they see an officer, we are unable to issue them with a penalty charge notice. The car acts as a visible deterrent and it is only parked at problem areas which have been identified by us or the public.”

James Donnelly, aged 26, who recently photographed the car in Market Street, Westhoughton, said: “Why can they get away with issuing a fine while being illegally parked? Even if they get special dispensation they should really be leading by example rather than doing this.”

Another reader, who asked not to be named, spotted the car parked on the pavement in Darwen Road, Bromley Cross, last month.He said: “If it was there during the week, to protect children walking to and from school then fair enough, but to me, it is just money making.”

Campaigner Barry Moss, aged 65, from Daisy Hill, said: “I would urge anyone who gets a ticket from the Smart Car to appeal.”