Page 2061 - Week 06 - Wednesday, 6 June 2018
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Let me tell another story about a young entrepreneur. Again I will not reveal his identity, but this young man has put everything on the line. Newly married, he delayed his honeymoon and asked his parents to co-sign on a retail lease. He has invested heavily in marketing, signage and promotion since light rail commenced, anything to get customers to visit the store. But as soon as the fences went up, trade dropped by 40 per cent, and not once did Canberra Metro, a representative of TCCS or the ACT government come to see him. Not once did they give him a project schedule or detailed time frame of works. How are businesses meant to operate under these conditions?
One of the central justifications for the light rail project, according to the government’s own business case, is to grow and diversify the economy. I am not sure how realistic this is, because in the short term, as far as I can see, businesses are suffering. This is particularly true for small businesses that do not have the support of big chains or a franchise.
And let’s not forget about the businesses in Mitchell who, despite the government’s recent budget announcement of the light rail stop, will continue to suffer until 2020 when this stop is finally delivered. These businesses have endured unacceptable amounts of disruption with blocked traffic and reduced patronage for well over 18 months. Mitchell is more than just an industrial hub; it has local gyms, play centres, cafes, dry cleaners and chemists that have been significantly impacted. There are examples of formerly successful, established businesses posting their first losses in five years, some in excess of $80,000, due to no fault of their own. This is a disgrace.
I have tried to give just a small snapshot of businesses in the area that are suffering. The pain, the hurt, the loss—these are not trivial matters. This is the livelihood of many Canberrans, and the future of their families. This does not mean other factors are not contributing to the downturn in business. There are construction projects occurring in the area associated with buses, walkway improvements and parking. However, I argue that these, too, are linked to light rail. There are new residential developments and community facilities being built which, again, are intentionally located near light rail. Yes, there are new shopping complexes in Yerrabi. However, these are grocery stores and small retail outlets; they are not large-scale retail sites with restaurants, cafes, gyms, and professional service providers.
Gungahlin is one of the fastest growing areas in Australia, and much of the development is in response to the population growth. By my thinking, this should result in commercial growth based on the strong economic conditions we are enjoying in the ACT. Under these circumstances, one would expect most businesses to thrive. However, this is not occurring, and light rail certainly has a case to answer in terms of contributing to this situation.
Given the various environmental factors that are affecting businesses, including the major role of light rail, this motion seeks an assessment, much like what the Liberal government has done in New South Wales to measure the impact of their light rail development. Following an active campaign from local business owners, the New South Wales government conducted an audit of local businesses. Consultants
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