Municipalities Urged To Compensate Small Business Impacted By Road Work


There is a call for municipalities to compensate small businesses impacted by road work and other infrastructure projects.

The Canadian Federation of Independent Business has released a new report detailing the impact of road work on small business.

The CFIB report found that since 2012, 41% of small business were affected by construction projects.

Nearly half, 46%, said sales declined during construction while one-in-five (21%) had to draw on personal or business savings as a result of a construction project near their business.

CFIB Senior Policy Analyst, Ryan Mallough tells AM800 News they understand the work will likely benefit the business, but the business has to be there by the end of the project.

"Maybe detours of current transit that stops in front of businesses, to couple blocks away or major dust, major noise, scaffolding that covers up a business and people don't actually know they're open," he says.  "The business can suffer to the point that they may have to close down."

He says this is a new idea for Canada but it has been done in other places such as Seattle where there was a $25,000 Business Stabilization Fund to help businesses.

"In the European Union, in Brussels, there is a  75 Euro for each day a business has to be closed because of construction."

Along with a compensation program, the CFIB is also recommending municipalities adopt four other measures: a "no surprise" rule, a comprehensive planning approach, an improved contracting process and a dedicated business liaison officer.