No compensation for businesses derailed by metro

Two-thirds of claims have been assessed by the government-appointed firm, KPMG, and Sydney Metro has begun notifying businesses whether they will be compensated.

A takeaway shop owner, Nick Vlahos, had to lay off four staff and business at his little Chifley Arcade shop dwindled after the government bought and emptied the neighbouring office block to make way for construction. The adjoining tower was also mostly emptied in preparation for its sale.

Though the metro was shelved in February, the tower on Castlereagh Street is still empty and the loss of thousands of customers has robbed the entire arcade of the business it had relied on for more than 40 years.

Despite being encouraged to apply for compensation by Sydney Metro, this week all the business owners in the arcade received letters saying they would not receive a cent.

''We feel like we've been ignored because we are small business people,'' Mr Vlahos said.

Because the government has indicated the $5 billion transport project has only been deferred and not cancelled, no one in the arcade can hope to sell and leave.

''Each business here has lost hundreds of thousands of dollars,'' said Steve Papadimatos, who runs a dry-cleaning business in the arcade.

The authority said the businesses' claims were rejected because there was no ''legal entitlement'' and the arcade did not sit on land that was being compulsorily acquired. It has agreed to a meeting with the business owners tonight.

Earlier this month the Transport Minister, John Robertson, said the government would pay $93 million to five major construction tenderers.

But the government has so far refused to release a full report on compensation by the accounting firm, Deloittes, despite the Legislative Council passing a resolution ordering it to make the report public.

''The only time money seems to be an object for this government is providing people they've totally stuffed around with the justice they deserve,'' said the opposition transport spokeswoman, Gladys Berejiklian.

Other businesses that were scheduled to be acquired have been told they may still receive compensation.

Jack Puth, owner of Darling Sea Breeze, a fish shop in Rozelle, put in a claim for expenses incurred while looking looking for new premises. He was contacted by KPMG demanding what he regarded as an excessive amount of documentation.

''They've asked for every single phone number that I called and how long I spent. They even asked for receipts for petrol,'' he said. ''I'm very tired of this and I get scared sometimes because my lawyer is asking me for money.''

A spokesman for Sydney Metro encouraged those who were not satisfied with their assessments to appeal.

He said that Paul Stein, QC, a former judge of the Land and Environment Court, had been asked to provide an external review for small business owners.

The Greens transport spokeswoman, Lee Rhiannon, said the offer was insulting.

''The government must know it has the upper hand in these negotiations and is working to string out the process to avoid paying compensation,'' she said.

Sydney Metro acquired at least $124 million worth of property to build the underground line from Central to Rozelle.

Source: www.smh.com.au/nsw/no-compensation-for-businesses-derailed-by-metro-20100630-zmvo.html