State government to compensate George St businesses for light rail disruption

AFTER more than two years of fighting, small businesses along the light rail route will get relief for lost trade caused by months of construction work.

Transport for NSW has revealed it has engaged an independent accounting firm and adviser to look at compensation for small business owners. Pic: Danny Aarons/AAP

• The Book Kitchen forced to close due to light rail impact

AFTER more than two years of fighting, small business owners will finally receive relief following the State Government’s extraordinary decision to award compensation to those who have suffered from the impact of light rail construction.

Following a campaign led by independent City of Sydney councillor and George St cafe owner Angela Vithoulkas, Transport for NSW has revealed it has engaged an independent accounting firm and adviser.

After meetings between business owners, Transport Minister Andrew Constance and Small Business Minister John Barilaro, the department has employed former federal Treasury deputy secretary Tim Spencer and accounting firm Ernst and Young to assess the financial loss faced by businesses.

Following a campaign led by independent City of Sydney councillor and George St cafe owner Angela Vithoulkas, Transport for NSW has revealed it has engaged an independent accounting firm and adviser. Pic: Danny Aarons/AAP

Central Sydney understands this applies to businesses not just on George St but all along the light rail route — including Surry Hills and Randwick — who have been affected as a result of delayed construction.

The compensation will come in the form of backdated rent relief. The first meetings between advisers and business owners took place last Tuesday, with an outcome anticipated within seven days of the meeting.

“Many businesses have suffered irreparable damage that no amount of rent relief will fix,” Cr Vithoulkas said.

Construction continues along George St despite businesses originally being told works would be completed in Christmas 2015.

“People have lost jobs, lost homes, they have increased debt to phenomenal levels from which they will probably never recover,” she said.

Since works started some businesses have reported losses of up to 30 per cent and a number, including Paxtons camera store on George St and the Book Kitchen on Devonshire St, have closed.

David Tracy from Steel Bar and Grill on George St said businesses were “right on the edge of survival”.

“No small business can withstand this situation without serious repercussions and every business along George St is hurting,” Mr Tracy said.

An artist's impression of what the light rail will look like outside the Queen Victoria Building.

“Compensation would do a lot to save businesses, especially for the stand-alone businesses who really rely on regular trade. From what I’ve heard the government has been committed to helping small businesses so I’m waiting to see what they will do,” he said.

“They’ve admitted there’s a problem and the urgency of this has been stressed to them.”

Cr Vithoulkas said the campaign would continue until compensation had been provided.

More than a hundred businesses are willing to join a class action against the government, a move that would go ahead should the compensation fall over, Cr Vithoulkas said.

The Book Kitchen shut its doors in May after 12 years of operation due to the impact of the light rail construction on Devonshire St in Surry Hills.

A spokeswoman for Mr Constance said that to be eligible small businesses must be stand-alone and in tenancy, not involved in commercial chains.

Assessment on eligibility for assistance with rent will be completed on a case-by-case basis only, she said.

The spokeswoman would not comment on whether the decision sets a precedent for future state significant infrastructure projects.