Auckland City Rail Link: Any payouts for struggling owners appear months away

Sunday, 6 October 2019

City Rail Link construction is affecting businesses on central Auckland's Albert St (video first published April 2019).

Possible compensation payouts appear to be months away for central Auckland businesses blaming mounting losses on delayed City Rail Link works.

Two-and-a-half months have passed since Auckland Mayor Phil Goff wrote to Transport Minister Phil Twyford proposing the creation of a hardship fund for the cluster of Albert St businesses.

The owners are engaged in a lengthy battle to be compensated for financial problems they blame on disruptive, and delayed, CRL construction.

In a statement to Stuff, Twyford said Goff's proposal was being considered 'as part of a wider policy process on how businesses affected by infrastructure projects can be assisted'.

* Heart of the City attacks 'disrespectful' compensation delay**

*** Minister mum on compo as businesses continue to struggle

Two-and-a-half months have passed since Auckland Mayor Phil Goff, left, wrote to Transport Minister Phil Twyford, right, propsoing a targeted hardship fund for Albert St business impacted by drawn-out CRL works.

* $4.4 billion project finds just $72,000 to help business owners

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However, the wider policy work was some months away.

'In the meantime, CRL is working on a case by case basis with affected Albert Street businesses trying to provide practical assistance,' Twyford said.

'While no decisions have been made, they are looking at measures such as taking over leases for the period of the construction disruption if it makes sense and there is beneficial re-usage for CRL.'

Shakespeare Hotel owner Sunny Kaushal, who was acting as a spokesman for the businesses, had hoped for a decision on compensation by the end of July.

On Sunday, Kaushal said the owners had not received any information from the Government about potential lease take overs.

'There appears to be a clear communication breakdown between the CRL and the minister,' he said.

Twyford said as City Rail Link was looking at potential lease take overs, any information about that would come from CRLL.

Kaushal said it was 'not acceptable' that a decision on compensation remained months away.

Owners were in 'urgent need' of support, with some facing 'financial ruin', he added.

They had faced an 'unprecedented situation as a result of a project that has not respected the needs of business and had significant delays'.

How to sink $4.4 billion underground - welcome to Auckland's City Rail Link.

'To date nothing tangible has been delivered to help these people in their time of need.'

Business owners have expressed dissatisfaction with City Rail Link Limited's (CRLL) offers of assistance.

Roma Blooms director Shobhana Ranchhodji said the company had given 'diddly-squat' to help business owners.

'We needed help and they said to us that you are going to help yourself through social media,' she said.

Stuff last week approached Goff's office for comment on whether he believed a decision needed to be made as a matter of urgency.

He initially failed to answer the question directly, but later said he wanted to see a decision made 'as soon as possible'.

The ball was now in Twyford's, and potentially the Labour cabinet's, hands, Goff added.

Earlier this year, CRLL chief executive Sean Sweeney went on record admitting CRL works were 'some months' behind schedule.

In June, the company stated construction of the tunnels under Albert St was due to finish in July.