Inhospitable: The light rail works on London Circuit viewed from the Melbourne Building. Photo: Ian Bushnell.
The construction of light rail through City West was always going to be disruptive for commuters and businesses, but what was not so predictable was how the cost of living crisis would compound problems.
Traders, mostly in sectors reliant on discretionary spending, are reporting custom falling off a cliff since construction started on light rail Stage 2A to Commonwealth Park in February.
It’s not just City West along or near the route. Works have spilled across Northbourne Avenue to Bailey’s Corner and the effects are hurting businesses there as well.
The barriers, road closures, restricted parking and the rest seem to have only clinched people’s decisions to stay home and save their money, or at least avoid the area and go elsewhere.
It has to be remembered that the COVID-19 pandemic restrictions and lockdown were only a few years ago. Since then, more people have also started working from home, resulting in a reduction in daily foot traffic in the city.
Many businesses were only just getting back on their feet after being supported through the pandemic when they were confronted with rising interest rates and costs.
Now, despite the ACT Government’s best intentions to keep the communication channels open and support businesses after the ‘learnings’ from Stage 1, the future is looking bleak without some solid measures to carry them through the next few years.
A government relief package is being put together, but with the budget not in great shape, just how much can be done is not known.
Certainly, fee relief has already been flagged, and more will be done to make the area more accessible with better wayfinding. However, businesses are calling for rate discounts, rent assistance, some form of financial compensation, and even wage subsidies to keep people in jobs.
A case can be made that this situation is comparable to the COVID restrictions.
Government decisions are forcing businesses to operate in unsustainable conditions over which they have no control.
Unless they are to be collateral damage in the construction of light rail, the government will need to do more than urge Canberrans to support the city businesses, put up a few more signs and offer some fee discounts.
Would it be just to expect businesses to keep paying their full rates and taxes if the imposed conditions made it impossible to trade at 100 per cent?
One of the big sells of light rail is that it will stimulate economic development in the western side of the city. It would be ironic if, instead, few businesses were left to enjoy the new connectedness of the city.
Another option for businesses would be to follow the example of those in Parramatta, who pursued a class action against the NSW Government agency when faced with the same situation.
That fell over at the NSW Court of Appeal, after success in the NSW Supreme Court, but such an action could be on the table.
Better to save money on lawyers and come to a deal.
The businesses themselves welcome light rail and what it will do for that side of the city, but if they are to see the fruits of the project, then support will have to come from somewhere to help them through.
The government package will require approval from the Expenditure Review Committee and is likely to be announced ahead of the June Budget.
Light rail is also a joint project with the Commonwealth. Any chance of the ACT Labor’s federal mates chipping in?
Businesses will be on tenterhooks to see what the relief package includes and whether the government really has their backs.
