State Government considers extra payments for ‘emotional dislocation’ for demolishing houses in North-South Corridor

The state’s biggest road infrastructure project is likely to affect hundreds of homeowners in its path. A State Government plan seeks to avoid a Castle-style showdown.

• $252m State Budget commitment to finish North-South corridor
• Hundreds of properties could be compulsorily acquired
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Extra compensation would be paid to residents whose homes are bulldozed for the North-South Corridor, under a plan being considered by the State Government.

The move could help avoid a Castle-style showdown, with hundreds of homeowners expected to be affected by the state’s largest road infrastructure project.

Micheal Caton as Darryl Kerrigan in The Castle.

But it could also add millions of dollars to payouts the State Government will make to displaced homeowners.

The payments would be in recognition of what is described in the industry as “emotional dislocation” and in addition to the market-value payments homeowners are paid for their properties.

Infrastructure Minister Stephan Knoll has confirmed the Government is considering “a solatium payment” in line with recommendations from a four-year-old parliamentary inquiry.

At this stage no figure has been confirmed for the SA payments. In NSW, such payments can reach $75,000, depending on a raft of criteria including how long property owners have lived at the property. Solatium payments in Victoria equal up to 10 per cent of the value of the compulsory acquisition payment.

An artist’s impression of the entry ramp to a tunnel as part of the North-South Corridor.

Mr Knoll told The Advertiser existing rules needed to be improved.

“Compulsory land acquisition is unavoidable if we are going to keep growing SA and building roads and infrastructure,” Mr Knoll said.

“Sometimes it can be a bit of a David-and-Goliath situation and the Marshall Government wants to better equip David throughout the negotiation process.

“We are considering a number of measures as part of our reforms, including solatium payments as occurs in other jurisdictions.”

Advance SA MP John Darley, who was involved in the 2015 inquiry into land acquisition that discussed the NSW and Victoria payments, has welcomed the move.

“When a home is compulsorily acquired, it can be very difficult for owners especially when they had no plans to leave the property,” he said.

“There should be some recognition for this and while nothing can replace losing your home, solatium payments will certainly help.

“They have been used effectively interstate.”

In June, The Advertiser revealed the North-South Corridor’s final stages are expected to swallow up between 600 and 1000 properties.

SA Law Society’s Planning, Environment & Local Government Committee chairman Anthony Kelly said the payments were a recognition of the difficulty homeowners had moving from their homes.