Mike Lee: Show the Anzac spirit of a fair go to affected businesses

Councillor Mike Lee visited Sydney to see first-hand how businesses are being helped from delays to a light rail project. Photo / Jason Oxenham

The Anzac ethos of a "fair go" is needed for business operators facing tough times from the City Rail Link project, says Auckland councillor Mike Lee.

Lee went to Sydney at his own expense this week to see first-hand how firms along the route of a 12km light rail scheme are helped by the New South Wales Government.

At first the state administration ruled out compensation for fear of the precedent it would set. But when accounts surfaced of business owners facing ruin and turning to medication for depression the government back-tracked.

It has set up "ex gratia payments" in recognition of the adverse impacts of the light rail project. A total of 212 businesses applied to the scheme and 160 received payments worth about $30 million.

The payments must meet strict rules. Payments only cover a 12-month delay period, businesses must employ fewer than 50 staff and produce tax and GST returns.

Claims are assessed by independent advisers and tax accountants, and payments are authorised by the NSW Minister of Transport.

Lee believes the Sydney model could be adapted to Auckland.

"It comes down to goodwill and the Australian and New Zealand ethos of a fair go.
Australians and New Zealanders understand a fair go," he said.

Constriction on Albert Street for Auckland City Rail Link project has caused many problems for local business. Photo / Dean Purcell

Lee said a hardship fund for 17 businesses affected by the CRL along Albert St should be paid out of a $310m contingency fund set up when a $1 billion cost blowout was unveiled in April.

Lee said bills from contractors, consultants and lawyers were paid without question, but with struggling main street operators it was a different story.

"That needs to change," he said.