Small businesses in Canberra’s CBD are worried about the impact light rail will have on them, and the Canberra Business Chamber says the ACT Government must be prepared to support them.

Work on the ACT Government’s biggest infrastructure project will entail at least four years of traffic disruption, and transport minister Chris Steel has told Canberrans to rethink how and when they travel around the CBD. That includes avoiding travel during peak periods, commuting earlier or later, public servants working from home, and using public transport rather than driving.

“We still want Canberrans to come into the city to shop, to work, and to spend time, but it will mean thinking a little bit differently about how they move around, and what times they move around – perhaps taking more time to plan their trip,” Mr Steel said earlier this week.

• London Circuit closing – expect years of traffic disruption (22 October)
• Light rail – London Circuit construction work begins (10 October)

But Graham Catt, CEO of the Chamber, believes it will not be feasible for many small businesses, particularly customer-facing ones, to stagger employer hours, start earlier, leave late, or work from home.

“They are the ones that are going to really struggle with how their workforce gets into work,” Mr Catt said. “There just isn’t the ability there necessarily to change working hours or to change the operation’s business, because they need to be operating when customers are there.”

If fewer people come into the CBD, businesses will suffer.

“If there are no customers there, there’s no viable business,” Mr Catt said.

The light rail follows the pandemic and last year’s lockdown, which left businesses struggling. While the ACT had the highest rate of new business start-ups of any state or territory for 2020–21, it also had the highest rate of closures and exits. More than 5,000 businesses started in the ACT in the 2020-2021 financial year, but almost 3,900 closed in the same year.

Civic office occupancy rates are already falling, Mr Catt noted; while high by national standards in the middle of the week (70 per cent), they can dip to 30 per cent on Fridays.

• Canberra businesses face post-lockdown challenges (15 August)
• Decline in Canberra office occupancy hurting local business (15 July)
• Record number of businesses opening and closing in 2020–21 (16 March)

“We’re already seeing changes to the pattern of work and people coming into the city,” Mr Catt said. “That translates into how people use restaurants, cafés, and hospitality outlets, and how they shop.”

Working from home, not coming into the city, or coming to the city at different times will exacerbate that pattern, he said.

Moreover, Mr Catt said, businesses were only just starting to understand the enormity of raising London Circuit and the scope of the works.

“It is a complex project, and it is quite difficult to understand exactly what roads are being closed, exactly what that means for traffic flow, and how that will translate into people’s commutes,” he said.

“Our general impression is that the actual nature and scope of the works being undertaken, the impact on businesses and their employees, and what that means for employees coming in and out of the city, really has not been well understood by business, and has not been well communicated [by government] to the business community and to the community as a whole.”

During the Gungahlin light rail works (2018–19), ABC News and the Canberra Times reported at the time, around three-quarters of businesses reported significant decreases in footfall and revenue (up to 75 per cent); business closure was at a three-year high, and the number of new businesses was at the lowest level for four years; other businesses sacked staff or sold properties.

Mr Catt would like the government to support small businesses that are significantly impacted, and provide them with resources during the four years of disruption. This may include financial support.

“We really don’t want to see our city centre … or our small businesses that keep the city centre thriving … impacted or damaged because of light rail. If that does involve some financial support, we’d like to think the ACT Government were open to that.”

ACT Government response

“Building light rail will bring significant and lasting benefits to local businesses,” a government spokesperson said. “This includes more business opportunities, increased vibrancy and visitation, and more foot traffic through the city precinct.

 “We have been up front with the community that there will be a period of disruption, particularly as people adjust to new routines as construction work progresses.

“Canberrans and visitors can still access local services and visit shops and cafes in the city.

 “We are communicating all traffic changes and travel impacts regularly so people can make informed travel choices and continue to move around the city and support businesses during construction.

“The Government will continue to work directly with businesses to provide information and updates on the project and implement ideas and initiatives where possible.

“Businesses near the raising London Circuit and future light rail alignment have been contacted directly and provided with project and travel information so that they can inform their staff, customers, and clients on travel options and alternatives for the upcoming temporary closure of London Circuit.

“A business tool kit has been developed and is available on www.builtforcbr.act.gov.au/travel-impacts.”

The ‘tool kit’ consists of maps of the city and a factsheet about raising London Circuit.

“A number of other initiatives are outlined as part of our Business Partnership Plan,” the spokesperson said.

These initiatives include a business relationship manager (a central point of contact in the government for project information and support); timely notice of construction activity and impacts, and adjustments to scheduling, where possible; signs and wayfinding, so customers can have clear direction on how to access businesses in a safe way; and regular and consistent information for businesses and their customers about project construction and disruption.

The government also says it will prioritise local procurement and suppliers where possible, and encourage the project’s construction partners and businesses to use local businesses impacted by construction.

Through a Business Activation Program, the government says it will work with businesses to attract customers during construction and ensure the area remains active, attractive, safe, and easy to navigate for community use. Activations could involve one-off or ongoing events or activities, artwork, campaigns, or entertainment.

“We will continue to work closely with businesses and keep them informed of ongoing works associated with raising London Circuit and Light Rail,” the government spokesperson said.