Sydney Metro,the agency overseeing the city’s automated rail network,has spent more than $2 billion acquiring 511 properties over the last three years for new lines such as a to.
Almost one-third of those acquired for the metro lines have been homes,while 26 per cent were small retail businesses,24 per cent commercial premises and 17 per cent industrial sites.
Properties were acquired for an $11 billion metro rail line to Western Sydney Airport.Janie Barrett
While most home owners settled with the agency,more than half the owners of industrial properties did not reach an agreement,which resulted in the matter going to the Valuer General to determine compensation.
In a report released on Thursday,the NSW auditor-general found Sydney Metro did not comply with timelines for most compulsory acquisitions because of delays in receiving information from the Valuer General.
Sydney Metro has to wait for the Valuer General to complete a compensation determination before the agency can send a notice to property owners.
Under state laws,an agency is required to issue a compensation determination to a property owner within 45 days of a compulsory acquisition starting.
However,the Valuer General took an average of 181 days to hand over determinations last financial year,while averaging 155 days over the last five.
The report warned it was unlikely that several recent changes to the Valuer General’s processes would,on their own,lead to all compensation determinations being completed fast enough to allow an acquiring authority to issue a notice within 45 days.
While almost nine out of 10 residential properties acquired for the new rail lines were done by agreement,Sydney Metro did not reach deals with owners of 58 per cent of industrial sites,which meant a compensation determination from the Valuer General was required.
“Industrial and commercial matters are typically the most complex type of acquisition. They are often contested and sometimes require expert advice from multiple sources,” the auditor-general’s report said.
One of the greatest project risks for Sydney Metro is not acquiring land needed for a line in time to allow construction to start on it.
The government has an ambitious timeframe to open the new line to Western Sydney Airport in time for the first passenger planes taking off in late 2026.
The airport rail line is one of three metro links under construction in Sydney,which are costing to build.
The main section of the $18.5 billion line under Sydney Harbour is due to open next year,while the line from the CBD to Parramatta is expected to open in 2030.
The auditor-general found Sydney Metro was “mostly effective” in the 20 acquisitions it assessed,and followed requirements for communicating with landowners. It included adhering to minimum timelines for negotiation periods,and engaging independent valuers and other experts.
The Department of Planning said in a statement that it was,in consultation with the Valuer General,focused on improving timeframes for compensation determinations.
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