Auckland City Rail Link: Businesses hit by road closures want 'fairness' from updated hardship fund

Thursday, 19 March 2020

A hardship fund set up by the company behind Auckland's $4.4 billion City Rail Link project has been 'updated', but affected businesses still do not feel they are getting a fair deal.

Sean Sweeney, City Rail Link Limited (CRLL) chief executive, said the fund had been 'updated recently' after discussions with Albert St businesses.

Before, a cap for rent assistance was $75,000, but it has now been raised to $100,000.

But Shakespeare Hotel owner Sunny Kaushal, who represents about 18 'struggling' small businesses, said they were still looking for 'fairness'.

Shakespeare Hotel owner Sunny Kaushal and other Albert St business owners want compensation for three years of City Rail Link works, not six months.

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'The CRL works which affected these businesses [have] not been taken into consideration. We have faced a grave situation between July 2016 and August 2019.'

Construction work took over the roads and pathways leading to Albert St businesses.

Kaushal said businesses like his who had faced losses in the millions wanted compensation for the past three years, not the past six months.

'Come to us, look at our books. The amount of losses should be compensated because of all of this was forced on us by the project,' he said.

'We didn't invite the CRL to close our doors.'

Bow Manoonpong, who owns one of Auckland's oldest Thai restaurants, Mai Thai, said she would be closing her doors in April due to the CRL.

The fact her lease was expiring was the final nail in the coffin.

'Mai Thai is like my baby, I've had it for 32 years,' she said.

Manoonpong calculated she had lost about 40 per cent of her customer base due to CRL's construction.

She said she was now choosing to focus on her other restaurant, Grasshopper Restaurant and Bar, as the fight for compensation continues.

Sweeney told Stuff businesses who qualified for rental assistance would receive a lump sum backdated to September 2019, when works along Albert St were initially scheduled for completion, and regular monthly payments up to $100,000.

He said further changes to the hardship fund aside from raising the cap included shifting the eligible date to September 1, 2019.

The fund was previously restricted to businesses which were trading before construction works commenced in July 2016.

However, only three applications have been forwarded to CRLL's independent valuer to date, although the company understands more applications are 'in the pipeline'.

Despite this, Kaushal said Albert St businesses are still considering pursuing legal action to get compensation, although cost would be a barrier.

'How can we afford it when we're struggling to keep our doors open, pay staff and rent?'