Auckland City Rail Link: Hardship fund for disrupted businesses

Thursday, 31 October 2019

Albert Street businesses, like the Shakespeare Tavern, have struggled during the disruptive construction works of the City Rail Link project.

Central Auckland businesses suffering financial difficulty because of the City Rail Link project will receive payments from a hardship fund.

The fund would recognise the difficulty businesses on Albert St had faced due to the delay in the CRL project, Auckland Mayor Phil Goff and Transport Minister Phil Twyford announced on Thursday.

Shakespeare Tavern owner Sunny Kaushal says the announcement of the Hardship Fund is positive news in his “campaign of survival”.

'Hardship grants will only be paid to businesses negatively affected by the delay in construction and the businesses will need to open their books to demonstrate they were commercially viable before the works started,' Twyford said.

The ex-gratia payments would be funded from CRL's existing contingency, Goff said.

Roma Blooms owner Shobhana Ranchhodji says she hoped the criteria to receive the Fund was realistic, so every impacted business could get help.

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

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

* Auckland City Rail Link: Heart of the City attacks 'disrespectful' compensation delay**

'I am pleased that the Government has agreed to our proposal to set up a capped fund targeted at those facing exceptional hardship. For those small business owners and their families this will be an enormous relief.'

Business is down on Albert St in the Auckland CBD because of the City Rail Link project.

Eligibility criteria would be finalised, and Twyford had also asked the Ministry of Transport to establish a criteria for business aid for future public transport projects.

Sunny Kaushal, owner of the Shakespeare Hotel & Brewery which is located in the middle of the CRL construction works on Albert Street, welcomed the announcement of the fund.

'These businesses have been crying out for help, it's been a very painful and difficult time for them,' he said.

'Finally there is a positive development in this campaign of survival.'

Roma Blooms Florist is another business hit hard by the works.

Owner Shobhana Ranchhodji said she hoped the criteria to receive financial aid was realistic, so all impacted businesses could get help.

'We've all been impacted and have struggled to make ends meet,' she said.

'I'm still uncertain and won't feel relieved until we've actually received the help.'

City Rail Link confirmed work was underway to implement the hardship fund.

'We acknowledge that at the lower end of Albert Street the project has been disruptive for some for longer than anticipated,' CRL Ltd's chief executive Sean Sweeney said.

'Supporting small businesses has been a project priority for some time and additional hardship assistance on top of the initiatives we have in place already should further help those who may qualify.'

The budget for the hardship fund would come from existing project costs, Sweeney said. He added there was extensive work to be done before the fund could be implemented.

'Our actions are directed at small businesses able to prove financial hardship caused by project delays.

'We also have a responsibility on behalf of New Zealand taxpayers and Auckland ratepayers to be prudent with our spending, and to operate a fund that is transparent and fair to all.'

When investigations were completed, Sweeney said CRL would present a formal proposal and budget to the Crown and Auckland Council for approval and sign-off.

Heart of the City chief executive Viv Beck was 'delighted that human decency had prevailed' in relation to the CRL project.

'This has been very difficult for those impacted and I'd like to acknowledge the people who have shown their support and those who have bravely stood up to say they need help. It has been a long, hard road to get to this point.'

The situation was 'unprecedented', Beck said.

'With the delays and severe impacts caused, it is unfair for small businesses to bear the brunt of a large-scale, long-term project in this way, we looked at what happens in other countries and advocated for a hardship fund that is fair and transparent with clear criteria. It's great news that a decision has now been made.

'The next steps will be important. There has to be a speedy and efficient resolution for affected businesses and we look forward to hearing more detail to ensure fair and quick action.

'It is heartening to see the intent is there for this to happen.'