Shops and companies who have lost customers and income due to the disruptive construction of Auckland's City Rail Link say hardship payments are long overdue, but don't nearly cover their losses.
The view from Shobhana Ranchhodji's shop on Albert St. Photo: RNZ / Nick Monro
Businesses, especially on Albert Street in central Auckland, have said the destruction of the street has deterred most of their customers, and many have closed their doors at a loss.
They started making noise about the disruption in late 2016.
Today the government and Auckland Council announced an evenly split $12 million hardship fund over two years for shops that have been affected.
Shobhana Ranchhodji owns Roma Blooms, a flower shop on Albert Street.
The store has at times been entirely obscured by large fences, with regular machinery noise and dust swirling around their front door. There are winding pathways to the front door. They have lost a lot of business since construction started near them in 2016.
"It's been five-and-a-half years of battle with the [City Rail Link], everything that we've been through. There's nothing that can make up the loss of what we've gone through, but from here onwards to do the right thing," she said.
The scene in Albert Street in 2016. Photo: RNZ / Calvin Samuel
The hardship fund for severely-impacted shops is welcomed by Ranchhodji, but having lost business over many years, it struck her as odd that it could only be applied to losses incurred since February this year.
They have struggled through, but she thinks a dozen shops have closed directly as a result of the construction.
A hardship fund is cold comfort for those who have shut down.
"They have lost everything. They've closed their businesses and are in serious debt."
The advocacy group for city businesses, Heart of the City, said that a decision has been made is good but long overdue.
Chief executive Viv Beck said they had hoped for more money - $10m a year - and haven't yet seen any detail of its administration or the eligibility criteria.
"There's definitely a lot to still work through here, but on the face of it, it's good news the decision has been made."
Business people hold a protest at Auckland Council premises in June 2021. Photo: RNZ / Katie Todd
Auckland Mayor Phil Goff said public works often disrupt business, but for no project before has central or local government offered ex-gratia payments like this.
"There is no legal obligation on council or government, but I think there is a moral obligation. I think this is the reasonable and fair thing to do," Goff said.
In announcing the fund, Transport Minister Michael Wood said it's "unfortunate" that a hardship fund wasn't built in to the project from the start.
And from now on, large public projects will have money set aside.
Goff said this is a first.
"I think that this does represent... an overdue change of policy. That when you have significant disruption affecting small businesses, then there needs to be some assistance given to those who are affected."
Goff said an independent body will make the judgement once applications start to roll in.
Businesses have not yet been provided with the eligibility criteria, and they will have to provide evidence it was the construction that caused the downturn.
Ranchhodji said the huge financial loss has put her and her husband under immense stress. And there are some things money can't buy.
"[There are] other things that we have lost that we will never get back again. Our age - we will never get that back again. Five and a half years of what we've gone through."
A number of issues have pushed back the completion date; the City Rail Link is now not due for completion until late 2024.
And with Auckland under alert level 4 now that may be delayed further.
Whether the businesses can survive until then to reap the benefits is not clear.
