Call for independent review of $12 million City Rail Link hardship fund

Thursday, 23 December 2021

Protest signs remain in the windows of businesses struggling to cope near the City Rail Link project in Auckland’s CBD.

Auckland business group Heart of the City has called for an independent review of a $12 million hardship fund that was supposed to help owners of businesses blighted by the City Rail Link construction project.

The fund was announced by Transport Minister Michael Wood and mayor Phil Goff in September after media highlighted the plight of nearby businesses as construction noise, dust, and disruption drove shoppers and diners away.

But Viv Beck, chief executive of Heart of the City, said business owners were disillusioned because the fund had failed to deliver for them, and calls for changes to eligibility criteria had been dismissed without explanation.

“On the eve of Christmas, the Minister of Transport has advised that there will be no further discussion on outstanding issues relating to the hardship fund that was announced in early September,” Beck said.

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“No rationale has been given as to why the changes requested by businesses have been rejected, nor any evidence provided that they have been given due consideration,” Beck said.

Shobhaa Ranchhodji outside her florist shop Roma Blooms on Albert Street in Auckland CBD.

The changes requested included backdating some payments. There was disappointment that the fund eligibility criteria also excluded owners of businesses which had been forced to close their doors.

“We want to see an independent assessment of the decisions made,” Beck said.

“We were led to be believe that there would be opportunity for input into the development of the criteria, but this has not eventuated as we or the businesses expected,” Beck said.

The streets around Auckland's City Rail Link have become a tagger's paradise. First published in August 2021.

Shobhana Ranchhodji, owner of Roma Blooms in the heart of the CRL construction zone, said the impact on businesses around the City Rail Link construction project dated back to 2016.

“The hardship fund will not cover the losses we have incurred, but we wanted the criteria to be fair and transparent,” she said.

“We’ve asked for the payments to be backdated to the start of the contract, yet they won’t budge on an arbitrary date of February 2021, and they won’t tell us why. These decisions go round and round in circles over and over again,” she said.

“It’s unbearable and this is ruining our lives.”

Beck said Heart of the City had requested an independent review of the hardship fund criteria.

Simon Court, ACT Party transport spokesman, said: “ACT supports the call by Heart of the City for an urgent and independent review into the minister’s decision and the compensation criteria.

Chief Executive of Heart of the City Viv Beck campaigned for the hardship fund for businesses.

“This simply can’t wait until more people have lost their livelihoods”.

Court said the hardship fund criteria was set in a way which excluded many of the people who suffered the most severe losses from the relentless dust, noise, safety and access issues.

Beck said business owners were still digesting the news that the CRL project would be further delayed, prolonging disruption.

On Wednesday, it was announced the project, which is the country’s largest infrastructure build, had been set back by months because of Covid-19 lockdowns and restrictions.

An artist’s impression of the exit from Aotea Station CRL station on to Victoria St in Auckland's city centre.

CRL chief executive Sean Sweeney said it was “highly unlikely” the $4.4 billion project would meet its December 2024 completion date.

Beck said business owners were waiting for the publication of the Auditor-General’s report on the project.

Lessons had to be learnt, including about fairly supporting businesses during major project construction, she said.

“It’s very important that issues relating to City Rail Link are dealt with before announcements about light rail are made, and more businesses face the potential for large-scale, long-term construction impacts.

“People no doubt think the hardship fund is in place, and it’s all sorted. That is not the case,” she said.

The City Rail Link project is part of a larger plan to provide Auckland with a modern transport system.

The project involves constructing two new underground stations, a 3.45km twin-tunnel underground rail link and redeveloping Mt Eden station.

A “strong indication” of the delayed completion date would be given at the end of next year once the tunnelling was completed and construction on the rail system had started, Sweeney said on Wednesday.

The news of the delay came on the same morning the tunnel boring machine Dame Whina Cooper reached a major milestone by breaking through into Aotea Station ahead of schedule.

Goff said it wasn't surprising Covid-19 had caused delays given the project had to close down for several months.