About 900 small businesses caught up in construction zone report losses

MORE than 100 businesses around the light rail construction zone are up for lease as the much-delayed project causes financial hardship and depression.

MORE than 100 businesses around the light rail construction zone are up for lease as the much-delayed project causes financial hardship and depression.

Shop owners along the 12km track say the work has been so disruptive it’s led to combined losses of at least $155 million.

On and around the route, The Saturday Telegraph found 115 retail properties ­advertised for lease. This included 59 in the Surry Hills construction zone, 17 in Randwick, 19 in Haymarket, 11 at The Rocks and nine in Kensington and Kingsford.

Amelia Birch revisits the site of her bookshop cafe The Book Kitchen on Devonshire St in Surry Hills which closed its doors in May 2017. Picture: Toby Zerna

The claims come as The Saturday Telegraph reveals businesses given state government rent relief have been forced to sign confidentiality contracts stating they will not say what they’ve received.

Transport NSW says it has given $6.95 million in financial support to 69 affected businesses since last August, but businesses say the program needs to be expanded to include those affected but not directly facing construction.

Small Business Party founder Angela Vithoulkas has collected data from about 900 businesses near the route, all reporting a loss of earnings.

“A lot of businesses who have closed feel ashamed and don’t want to talk about it.” Picture: Toby Zerna

Joanna Piroddi has noticed a 37 per cent reduction in revenue at her Italian restaurant on Anzac Pde in Kinsgford since construction began directly outside. Picture: Toby Zerna

Of the 900, 89 per cent said they were experiencing physical or mental health issues and 91 per cent had heavily reduced access due to the construction work. The combined loss of earnings reported was $155 million.

Ms Vithoulkas, who is preparing to launch a class action against the government over the light rail, said she knew of at least 49 businesses that had shut down in the past year.

Eloura hair salon owner Richard Campbell has considered relocating his salon on the corner of Crown and Devonshire streets in Surry Hills. Picture: Toby Zerna

Light Rail construction fencing outside a closed shop at 337 Anzac Parade in Kingsford. Picture: Toby Zerna

She said her own city cafe had experienced earning ­declines of up to 50 per cent.

Popular Surry Hills restaurant The Devonshire closed last December, with its owners blaming the move on the “severe impact on trade” from “the extensive light rail works on Devonshire Street”.

GOVERNMENT’S ‘EXPLOSIVE’ RESPONSE TO LIGHT RAIL BUILDER LEGAL ACTION

A vacant shop at 343 Anzac Parade in Kingsford. Picture: Toby Zerna

MJ Cafe on Anzac Parade at Kingsford. Picture: Toby Zerna

LIGHT RAIL CRIPPLING BUSINESSES IN CBD

SYDNEY LIGHT RAIL: WHEN OH WHEN WILL THE BARRIERS COME DOWN

In submissions to the NSW parliamentary inquiry into light rail, business owners describe financial losses of more than $1 million, depression and even suicidal thoughts.

One submission tells of “severe migraines due to constant financial pressure”, while another blames a near-marital breakdown on “the financial strain that has been the Sydney light rail project”.

Transport Minister Andrew Constance encouraged businesses to contact Transport for help and conceded businesses were under “enormous strain”.

Mr Constance said he acknowledged “ that Acciona’s go-slow has been frustrating and difficult for small business operators on the alignment” but said the light rail would be beneficial for them when complete.

“I am aware of the submissions to the parliamentary inquiry and reject the assertion that hundreds of businesses have missed out on financial compensation or assistance,” Mr Constance said.

NSW Transport Minister Andrew Constance said he acknowledged Acciona’s go-slow “has been frustrating and difficult”.

“We are continuing to support businesses, in some cases writing out cheques in the hundreds of thousands of dollars. This support will continue until civil construction is complete, including multiple payments per eligible business as necessary.”

“We are not seeing a mass closure of businesses, but we are seeing business owners under enormous strain at both a personal and professional level. This is why we have taken the action we have in relation to making rent relief available – particularly given that the project is late due to the contractor.”

“What we are seeing in some instances is tenants not having their leases extended by business owners who are deciding to redevelop their properties. The Small Business Commissioner is looking into this.”

“The removal of construction barriers in the next 3 – 6 months will bring life back into the city and provide the most benefit to small businesses and that’s why I have urged ALTRAC to make this happen as quickly as possible.”

Amelia Birch lost her Devonshire St business The Book Kitchen in May 2017.

A spate of For Lease signs above 559 Crown St in Surry Hills. Picture: Toby Zerna

NOW IT’S FLOODING DANGER FOR TROUBLED PROJECT

“A lot of businesses who have closed feel ashamed and don’t want to talk about it,” Ms Birch said.

Richard Campbell said he was debating whether to relocate his Eloura Lifestyle Salon from Crown St.

“From the minute the construction bollards turned up we started losing customers,” he said.