Hodson-Thomas inquires about compensation for businesses affected by railway construction and potential loss of development rights. The government states contractors are responsible for minimizing disruption and no specific compensation is budgeted, citing limitations under the Land Administration Act.

AnsweredQoN 2819Legislative Assembly
Asked
4 May 2004
Portfolio
Planning and Infrastructure

QuestionView source ↗

(b) what sums have been allocated, if any, to meet valid claims for compensation from businesses that suffer from this disruption; (c) what amount has been set aside to offset claims likely to be made by building and business owners in the city with regard to the loss of future development rights due to the presence of the railway underground; and (d) what is the Government’s forecast cost per month of the disruption to the CDB and the Kwinana freeway?
(c) what amount has been set aside to offset claims likely to be made by building and business owners in the city with regard to the loss of future development rights due to the presence of the railway underground; and (d) what is the Government’s forecast cost per month of the disruption to the CDB and the Kwinana freeway?
(d) what is the Government’s forecast cost per month of the disruption to the CDB and the Kwinana freeway?
(b) See (a) above. There is no specific allowance for payment of claims from businesses that suffer from disruption during the construction of the City works. The contractor and the City Project group will work closely with the City of Perth and business people to ensure that there is a proper level of communication about the progress of the works and to put in place effective strategies to minimise the effects of construction activities on businesses and the general public. (c) Under the relevant provisions (section 162) of the Land Administration Act 1997, compensation rights to the owners are limited in the case of underground titles and no compensation is payable unless: · The surface of the overlaying soil is disturbed by the construction work; · The support to the surface is destroyed or injuriously affected by the construction work; or · A mine, underground working, spring, reservoir, dam or well in or adjacent to the land is injuriously affected by the construction work. The Act provides no entitlement for loss of development rights and accordingly, there is no allowance in the project budget. (d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail. It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.
(c) Under the relevant provisions (section 162) of the Land Administration Act 1997, compensation rights to the owners are limited in the case of underground titles and no compensation is payable unless: · The surface of the overlaying soil is disturbed by the construction work; · The support to the surface is destroyed or injuriously affected by the construction work; or · A mine, underground working, spring, reservoir, dam or well in or adjacent to the land is injuriously affected by the construction work. The Act provides no entitlement for loss of development rights and accordingly, there is no allowance in the project budget. (d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail. It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.
· The surface of the overlaying soil is disturbed by the construction work; · The support to the surface is destroyed or injuriously affected by the construction work; or · A mine, underground working, spring, reservoir, dam or well in or adjacent to the land is injuriously affected by the construction work. The Act provides no entitlement for loss of development rights and accordingly, there is no allowance in the project budget. (d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail. It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.
The Act provides no entitlement for loss of development rights and accordingly, there is no allowance in the project budget. (d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail. It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.
(d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail. It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.
It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.

AnswerView source ↗

Answered
16 June 2004
Responded by
Minister for Planning and Infrastructure
Response time
43 days
(a) Under the New MetroRail City Project contract 27/03, the contractor must minimise traffic disruption and maintain access to businesses at all times. The contract includes an unlimited indemnity by the contractor in respect of loss or damage arising from the project works. Exposure of the State to disruption effects is therefore strictly limited.
(b) See (a) above. There is no specific allowance for payment of claims from businesses that suffer from disruption during the construction of the City works. The contractor and the City Project group will work closely with the City of Perth and business people to ensure that there is a proper level of communication about the progress of the works and to put in place effective strategies to minimise the effects of construction activities on businesses and the general public.
(c) Under the relevant provisions (section 162) of the Land Administration Act 1997, compensation rights to the owners are limited in the case of underground titles and no compensation is payable unless:
· The surface of the overlaying soil is disturbed by the construction work;
· The support to the surface is destroyed or injuriously affected by the construction work; or
· A mine, underground working, spring, reservoir, dam or well in or adjacent to the land is injuriously affected by the construction work.
The Act provides no entitlement for loss of development rights and accordingly, there is no allowance in the project budget.
(d) The relevant contractors for works in the City (contract 27/03), the Kwinana Freeway (contract 367/02) the railway infrastructure (contract 03/005) and for the stations on the Kwinana Freeway are responsible for managing their works and minimising the impact of their works on adjoining landowners, service and utility owners, road and freeway users and the general public. There is no specific forecast of the cost of disruption to businesses in the CBD or freeway users. Any short-term disruption suffered will be quickly forgotten and more than offset in the future by the improved level of transport efficiency, overall improvement in the William Street and Esplanade precincts due to the new station developments and the increased number of people accessing the City by rail.
It is important to note that under the previous Government’s Kenwick Deviation and Stage 2 of the Kwinana Freeway Busway Project the level of disruption south of Canning Bridge to Mandurah would have been the same. The previous Government’s $1.4 Billion budget (in 2006/07 dollar values) did not include any compensation for disruption.

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