Life is to be made easier for city commuters with the launch of monthly parking permits -- eliminating the hassle of lugging change or trying to get the credit card to work.

But drivers could eventually find themselves priced out of parking as the City of Hamilton Corporation looks to curb rampant demand.

Corporation Secretary Roger Sherratt said there were three categories of monthly permits ranging from $125 to $60 according to where you park.

They can be bought from City Hall from today -- the scheme starts on Monday.

They will entitle motorists to park on weekdays and will work out slightly cheaper than paying each day.

The Corporation is also set to give the world debut to individual parking meters fitted inside cars. Mr. Sherratt explained that each motorist could set their calculator-sized meter running at the rate necessary for wherever they were parked. Motorists could top up credit on the machine by phoning in and using their credit cards.

"We are hoping to see them in the next four to five weeks. If we like them we will then test them over several months.'' But Mr. Sherratt said more radical measures could be on the horizon to curb the growth of traffic.

He said: "The Bull's Head car park is filling up ever more but when it was first built it was described as a white elephant. The parking problem will increase as long as there are unlimited cars on the island. As the island is becoming more affluent then more and more people drive cars.

"We're looking at how to encourage use of public transport. It now costs you to park at some locations in the city and as time progresses you can expect it will cost you more...A few years ago you didn't have to pay to park, now you do in certain areas. But the whole city may have to pay to park.''