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Perth Business Owner Demands $250,000 Compensation After Metronet Works Push Shop to the Brink

A local East Victoria Park business owner is taking a stand against the Public Transport Authority, claiming Metronet construction works cost him $250,000 and nearly forced his store to close. Joe Mahon says the prolonged road closures and traffic chaos decimated his customer base and wiped out years of steady growth.

SR
By Staff Reporter
News reporter · Updated about 17 hours ago

An East Victoria Park business owner is demanding answers and financial compensation after years of disruptive Metronet construction works pushed his specialty retail shop to the brink of permanent closure.

Joe Mahon, the owner of Reid’s Remotes, claims that the removal of the Oats Street level crossing, coupled with the elevation of the rail line and construction of a new train station, has cost his business at least $250,000 in lost revenue. While he supports the long-term benefits of public transport upgrades, Mr Mahon says the sheer scale of disruption has devastated local traders who have been left to shoulder the financial burden.

A Flourishing Business Derailed

For years, Reid’s Remotes thrived at its prominent location on the corner of Bank Street and Forward Street. Selected specifically for its street visibility, easy access, and ample customer parking, the business enjoyed consistent annual growth of between 25 and 30 per cent in the four years leading up to the construction.

However, when the major Metronet works commenced in late 2023, the bottom line took an immediate hit. In the 2024 financial year, turnover dropped by 7.45 per cent, followed by another 8.75 per cent decline in 2025.

Mr Mahon attributes the downturn directly to the loss of passing trade, which had previously been a cornerstone of his business. "In 2018 we started documenting how every customer found us, and passing trade was one of our primary drivers," Mr Mahon said. "By April 2024, as the project intensified, our passing trade dropped to zero. We had no passing trade for the next 18 months."

"Like Falling Off a Cliff"

According to Mr Mahon, the disruption evolved from a minor inconvenience into an insurmountable barrier for his customers. Initially, construction workers occupied most of the available on-site parking. But the situation deteriorated rapidly once road closures were implemented.

"Once they introduced a road closure, it was like falling off the edge of a cliff. Basically, people couldn't access us," he explained. "The one street customers were supposed to use to access us, Forward Street, was constantly choked with cranes, concrete trucks, and heavy vehicles. Even my staff and I struggled to get to work."

To make matters worse, constantly shifting detours meant that online maps and GPS services could not stay updated, leading to widespread confusion. "Customers would actually give up in frustration and just cancel their bookings," Mr Mahon added, noting that he was not informed that Oats Street would be closed for a continuous 18-month period until after the barricades were already in place.

The Fight for Compensation

Following the completion of the major works, Mr Mahon submitted a formal compensation claim for $250,000 to the Public Transport Authority (PTA). The figure represents the projected revenue his business would have generated based on its pre-construction growth trajectory.

The PTA recently rejected the claim. Legal representatives for the authority argued that the traffic changes were reasonable under the circumstances, undertaken for the wider community's benefit, and that reasonable steps were taken to mitigate the impact. The PTA also maintained that access to the property was continuously provided and that no viable alternative construction methods existed.

Despite the setback, Mr Mahon says he has no choice but to fight the decision. "I can't see any other option. I can't afford not to. My business almost closed last year," he said. "I’ve sunk the last 19 years of my life into this business. I have no problem with public transport upgrades, but when a government department does work that knowingly impacts small businesses and shows zero consideration for that impact, that is a major problem."

In a statement, a spokesperson for the PTA confirmed that all business compensation claims are assessed on an individual basis but declined to comment on specific payments while outstanding claims remain under assessment.

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