Auckland business owners disappointed with City Rail Link hardship fund

Friday, 17 January 2020

The latest video from City Rail Link showing the proposed design features of the Aotea Station.

Businesses affected by Auckland's massive City Rail Link project may pursue legal action to get compensation.

The comments come following a meeting on Thursday between City Rail Link Limited (CRLL), the company behind the $4.4 billion construction project, and nearby business owners.

The meeting was called by CRLL so the details of a hardship fund set up for those impacted by the construction could be discussed.

But Sunny Kaushal, who owns the Shakespeare Tavern, said he was disappointed when he found out what the business owners would receive.

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If a business was paying $10,000 a year in actual rent and the market rate was $9500, the business would be paid the difference of $500, he said.

'If they turned out to be the same they would get nothing,' Kaushal said.

'We thought CRL would pay us for the period of the construction and the delays.'

Shakespeare Tavern owner Sunny Kaushal says the fund doesn't address the real financial hardship business owners have suffered.

Kaushal claimed his business has lost $1.5 million due to the works since early 2017.

'We aren't able to pay our rent and some of the affected businesses have already closed because of it. We are paying the price for the CRL. But they aren't taking us seriously.'

Another business owner didn't want to be named, but said they were weighing up their options after Thursday's meeting.

'We will have to talk with the other businesses about what we're going to do next. But it seems like we will have to go down the path of legal action.'

In a statement on Thursday, CRLL chief executive Sean Sweeney said the fund would deliver some financial relief by providing rent assistance, which was usually the single biggest fixed cost on the books for any business.

But he said the programme wasn't a compensation package to cover disruption or loss of business due to the construction.

'The City Rail Link project has no mandate to provide compensation. Businesses seeking compensation can do so under the Public Works Act.'

Sweeney said applications would be assessed by a qualified property valuer, working independently of CRLL, to determine how much rent should be paid.

Any pay out would be backdated to September 1, 2019.

'CRL Ltd assures small businesses it will honour any decision made by the valuer, including the level of rent assistance to be paid.'