CRL hardship fund slammed

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 Ltd (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.

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

Another business owner did not want to be named but said they were weighing up their options. ‘‘We will have to talk with the other businesses about what we are 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 was not 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.