The $15m roundabout that ended a popular local brewery

A popular craft brewery in regional NSW that lost almost $1 million in trade during drawn-out roadworks is closing down after receiving no financial assistance from Transport for NSW, even though businesses in Sydney received millions during construction of the light rail.

Tumut River Brewing Company owner Tim Martin calculates his business suffered $865,000 in direct losses because Transport for NSW took 18 months to build a roundabout outside his brewery in the foothills of the Snowy Mountains. He will pull his last beers on Sunday.

The Tumut River Brewing Company, which lost trade during 18 months of roadworks.

Transport for NSW said it had not received a formal compensation claim from the Tumut brewery over construction of the $15 million roundabout to fix a notorious black spot, but Martin said his repeated attempts to seek help had been scuttled by bureaucracy.

“Everything went round and round in circles as it does with government, until we went out of business. They just ignored it until we ran out of time,” Martin said. “Had we received even half the compensation we believed we were entitled to, I’d still be in business now.”

Martin built up the brewery over 18 years after moving back to his childhood home and seeing the tourism potential in what he says is “the prettiest little town in Australia”. He has now listed the business, which employs 25 people, up for sale. If he fails to find a buyer it will be put into voluntary administration.

The roundabout outside the brewery, which took 18 months to build.

Independent Wagga Wagga MP Joe McGirr has tried to help Martin in his dealings with government during the past year. He said he was disappointed a small business that drew visitors into Tumut had received no financial assistance, while businesses in Sydney had.

“My understanding is that businesses in Greater Sydney got compensation from the light rail. The impact on this business was much greater from construction of the roundabout.”

Transport for NSW paid $52.4 million to more than 200 small businesses affected by the construction of the Sydney Light Rail between 2017 and 2019, as part of an “ex gratia assistance” scheme. The payments were not treated as compensation.

It also paid $4 million in damages to two Sydney businesses last year that successfully took the department to court over lost trade during the light rail project. However, the Court of Appeal overturned that judgment on Wednesday. The department and its insurer are now considering their position in relation to those payments.

Construction on the light rail line from Circular Quay to the eastern suburbs dragged on for five years.Credit: Louise Kennerley

McGirr said while he appreciated the government’s prompt efforts to build the roundabout after a double-fatal accident at the intersection, he believed Transport for NSW should have done more to help Martin’s business.

“It’s quite distressing,” he said of the brewery’s closure. “They’re a much-loved company, a genuine small business with a great product that’s loved in our region.”

Transport for NSW said heavy rain had blown out the completion time for the roundabout from nine months to 18 months. The roadworks had made it difficult to get into the brewery and closed a road out the front for seven months. Martin said he also lost passing trade because Google Maps was redirecting drivers around the back of town.

Transport for NSW said it had tried to mitigate the impact of the works by installing electronic message boards and other signs directing people into the brewery, and had built a shared path between nearby wetlands and the business.

Tim Martin at the Tumut River Brewing Company.

Martin said the roundabout had been a critical factor in the failure of the business, but the Black Summer bushfires, COVID-19 and interest rate rises had also affected trade.

“I kept making the mistake of saying ‘At least things can’t get any worse’, and it turns out they can. I didn’t think I could lose any more trade than I did during the roundabout drama, but we did this year.

“People clearly don’t have the money to spend that they used to have … that seems to stem from the fact that interest rates have gone through the roof.

“I just couldn’t make it work, I’m happy to own that. We did everything we could.”

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