Ulcers and insomnia from City Rail Link disruption
business owners to be acknowledged.
‘‘As things stand there is sufficient money to assist eligible businesses, but they will need to take the step of applying.’’
Auckland mayor Phil Goff says he supported the creation of the fund to alleviate ‘‘genuine hardship’’ because he saw the disruption construction had caused.
The fund was a first in
New Zealand infrastructure history, and will be reviewed later this year, he says.
‘‘Sponsors cannot commit to further funding until that review is undertaken,’’ Goff says.
Payments from the fund are limited to a portion of each business’ rental cost and only those CRL deemed to be in the construction zone. The money will cover only a limited period from February 2021, and provide no cover for the period in which the Covid-19 wage subsidy was available.
‘That’s really unfair. Covid has come on top,’’ says Viv Beck, chief executive of Heart of the City.
The fund made some immediate interim survival payments, and Natural Health received $10,000. But Quan says her rent is $8000 a month, and she’s six months behind, though that is only a portion of her debts.
Angered by the limitations of the fund, a perceived lack of transparency, and CRL’s control of the fund, businesses went on application strike, which prompted questions in Parliament last month when MPs realised only $500,000 out of the $12m hardship fund had been paid out.
Jugdish Naran from Roma Blooms says business owners believe the $12m allocated to the fund is an arbitrary amount.
‘‘They’re telling us the only reason it went to February 2021 was Mr Wood said they would run out of money,’’ Naran says.
‘‘He said it was fair. In what way is that fair? For him, or for us?
‘‘We want reassurance it is going to continue until the project finishes,’’ he says.
Quan says she is certain she will get money from the hardship fund, but she does not expect it to clear her debts, or cover lost profits, or the destruction of value in her business.
In 2015, she was offered $1m for the business, she
‘‘CRL destroyed everything and ruined our life.’’ Joe Wang
says.
‘‘Who would come and buy it now?’’ CRL chief executive Sean Sweeney told the select committee in February that hardship fund payments were without prejudice and the businesses could sue.
He also praised the ‘‘admirable job’’ CRL had done managing the impact on the public of what was a ‘‘very disruptive project’’.
Wang says CRL does not fear being sued.
‘‘We have no finance to take legal action, so they are not afraid of us. We can’t pay our rent. How can we pay for legal action,’’ he says.
‘‘CRL destroyed everything and ruined our life.’’
Wood has also ruled out passing legislation to require future large infrastructure projects to budget for hardship funds for affected businesses.
Beck says that is not good enough, and there is no evidence that a hardship fund has been budgeted for the $14b light rail link plan to link Auckland Airport and the Auckland CBD.