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Crossrail admits just ‘two or three’ firms received money for relocation
Pippa Crerar7 Jan 2010
Only “two or three” businesses evicted by Crossrail have been given a loan by the developer to help with relocation costs, its bosses admitted today.
Hundreds are being forced out so their buildings can be demolished to make way for the £16 billion east-west rail link.
The vast majority affected so far in Soho and Paddington have had to find tens of thousands of pounds to move and cover lost income, hoping they receive compensation later. Crossrail conceded “almost all” of those retrospective compensation claims are yet to be settled as well. The developer blamed delays on the shops and businesses, accusing them of failing to follow its advice.
Many companies have analysis from accountants showing they are more than £100,000 out of pocket. Yet Crossrail chief executive Rob Holden insisted some were trying to make a profit from their eviction.
He said: “There is a small number who will use this situation to further develop their businesses.” He accused firms of not being prepared for the move, saying they were given three months' notice of eviction.
Speaking to the London Assembly transport committee, he suggested businesses had not appointed professional advisers. Firms that contacted the Standard to complain said they had hired consultants.
Mr Holden told the committee bridging loans were available to cope with moving. But he eventually conceded only “two or three” had been paid. Between 190 and 240 firms will be forced to move. More than 60 in Soho have already been evicted.
'I don't know what's going to happen. It's a nightmare'
The owner of London's last large taxi rest stop which was forced to close by Crossrail told today of his “nightmare” battle for compensation.
John Anderson, 66, who ran the cafe at The Royal Oak Taxi Centre behind Paddington station, has yet to receive any money to cover his losses and relocation costs, which top £200,000.
His venue provided free parking for up to 150 cabs, as well as a cafe and washrooms, for 25 years until it finally shut at the start of last month to make way for the railway line, leaving more than 20 people out of work over Christmas.
The capital's 25,000 taxis are left with only a smattering of far smaller shelters that allow them to have a break while escaping central London's tough parking restrictions.
Mr Anderson accuses Crossrail, which took over the land he leased from Network Rail, of treating him “appallingly” and refusing to clarify how compensation is calculated or when he can expect a decision.
His negotiators wrote requesting an advance payment in October to help with cashflow but have yet to receive a response. He claims they have sent in copious documentation detailing his moving expenses as well as his firm's financial records.
He said: “When word got out we were closing, taxi drivers went elsewhere to investigate new places to stop and trade plummeted. I lost around £100,000 in takings in the last few months and took virtually no salary so I could cover my overheads and pay my staff. I used £40,000 of my wife's savings too to stay afloat.
“Crossrail advised me to relocate, but now they're expecting us to pay for the move up front ourselves. They're dragging their feet and not explaining anything. It's been appalling.
“They said we wouldn't get any compensation if we shut because our lease from Network Rail said we could be kicked out with six months' notice anyway.
“The banks won't help in these circumstances so I've borrowed nearly £100,000 from a friend for a deposit on a new site a third of the size in Edgware Road, but that's not even open yet as we're waiting for planning permission.”
Mr Anderson, who employed his son and daughter, said his family's Christmas was ruined.
“It hasn't been much fun,” he said. “We just gave each other little presents. I'd bought that business to give my children a future and now I don't know what's going to happen. It's a nightmare.”
A Crossrail spokesman claimed the developer had yet to receive a “valid claim” from Mr Anderson's negotiators.
He said: “This is taxpayers' money, so we have a duty to ensure that every penny is accounted for before it is paid out. As soon as the company's agents submit the valid evidence, we will be able to get their compensation to them.”
Sri Carmichael, Consumer Affairs Reporter
Reader views (1)
Crossrail have blighted my land, worth £3m, and refuse to buy it from me on the grounds 'they can get it for nothing later'. I tried to force them to pay me but lost my case on the grounds of 'unreasonable behaviour'. It seems others are having similar problems to me, they have my sympathy and support.
- Bill Batchelor, monaco, 19/01/2010 16:42
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