Photo: RNZ / Reece Baker
An economic review indicates retailers need more support to offset the disruption caused by major infrastructure construction.
Research by the Institute of Economic Research (NZIER) indicates even short term construction disruptions had been widely felt through projects such as the Auckland City Rail Link, Wellington's 'Let's Get Wellington Moving' and upgrades to Tauranga and Dunedin's central business district (CBD).
"The report highlights the very thing our members have been telling us," Retail NZ chief executive Carolyn Young said.
"It's tough to navigate the construction period and businesses have a higher risk of closure as owners struggle with dust, noise, lower foot traffic, delivery disruptions, decrease in sales and additional costs."
She said local and central government should provide adequate funding to support businesses through the most difficult phases of construction.
The NZIER report recommends measures should include an outreach programmes to involve businesses and communities early and throughout the project, along with clear lines of responsibility and communication channels, as well as financial support.
It estimated average business revenue losses at up to 22 percent, based on the findings of a Canadian study.
Young said 22 percent would probably not be a reasonable amount of compensation in the context of New Zealand, though some cash would be helpful, along with measures to soften the blow for businesses most directly affected by construction disruptions.
