The impact of infrastructure development on local businesses is a complex and often overlooked issue. In this case, we see a clear example of how major construction projects can have unintended consequences for nearby enterprises.
Mr. Joe Mahon, a Perth business owner, has shared his story of financial loss due to the Metronet works, which aimed to upgrade public transport in East Victoria Park. The removal of a level crossing and subsequent rail elevation led to significant road closures and parking issues, directly affecting his business, Reid's Remotes.
The Impact on Business
The initial disruption began with workers occupying parking spaces, making it difficult for customers to access the store. This was followed by road closures, which created a complex and ever-changing detour system. Mr. Mahon describes it as a gradual decline, with the situation worsening as the project progressed.
The closure of Oats Street, a key access point, was particularly detrimental. It resulted in a loss of passing trade, as potential customers couldn't easily navigate to the store. Mr. Mahon's documentation of customer feedback highlights this, with passing trade dropping to zero by April 2024.
Financial Implications
The financial impact is significant. Mr. Mahon's business experienced a decline of 7.45% and 8.75% in the 2024 and 2025 accounting years, respectively. This is a stark contrast to the 25-30% annual growth seen in the four years prior to the Metronet works.
He attributes this decline directly to the loss of passing trade and the challenges faced by customers in accessing his business. The closure of Oats Street for 18 months was a critical factor, as it isolated the business and made it less visible to potential customers.
Seeking Compensation
Mr. Mahon has taken the bold step of seeking compensation for his losses, submitting a claim for $250,000. This figure is based on the projected growth his business would have achieved had the Metronet works not impacted his operations.
However, his claim was denied by the Public Transport Authority (PTA), who cited the reasonableness of the traffic changes and the benefits to the entire community. They also stated that access to the property was maintained and that there was no alternative way to carry out the works.
Despite this denial, Mr. Mahon remains determined to fight for compensation. He believes that while the works were necessary, the lack of consideration for the impact on local businesses is a significant issue.
Broader Implications
This case raises important questions about the balance between essential public works and the potential harm caused to nearby businesses. While infrastructure development is crucial for the community, it's essential to consider the potential fallout and ensure that affected businesses are supported.
In my opinion, this story highlights the need for better communication and planning when undertaking such projects. It's a delicate balance, and one that requires a thoughtful approach to ensure the well-being of all stakeholders, including local businesses.
