This seems pointless, unless the plan is that if they "possibly" offend in one area, they are likely to be offending else wise (re tax discs etc.)
Not an issue, they can report all they like..unless evidence, not a possibility of being prosecuted for anything.
The main danger is that this will bring out pettiness, and cause more people to begrudge the police. I would have thought this was an unwise policy..but...who am I