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Finance

Olympic cost estimate

THE government was rightly lambasted last week by a parliamentary committee for its mismanagement of the 2012 London Olympic finances since winning the games in July 2005. But the Eye has discovered that even as the crowds were erupting in Trafalgar Square two summers ago, the government knew the real costs bore no relation to those set out earlier that day in Lord Coe's decisive presentation to the International Olympic Committee.


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'London Councils' Chairman objects to costs rise

‘London Councils’ has been firmly behind the bid for the games and is working with the Olympic Delivery Authority and the Game's organising committee to ensure that they leave a positive legacy benefiting every Londoner.


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Ken Livingstone contradicts Tessa Jowell

Ken Livingstone has denied the 2012 Olympics finances are in chaos - as he contradicted what Culture Secretary Tessa Jowell told MPs on Tuesday. "Nothing is a mess, everything is going exactly according to plan," he said.


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Tessa Jowell defends rising costs

The cost of the 2012 Olympic Games rose again as Tessa Jowell admitted yesterday that the budget for the Olympic Park had jumped by 40 per cent.

The Culture Secretary also disclosed that the Government was paying £400 million to a consortium to manage the project and ensure that the Games came in on budget and on time. The new core budget for the construction of the Olympic Park in East London had risen £900 million from £2.375 billion to £3.3 billion, Ms Jowell told MPs.


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Regeneration costs rise

Public support for the 2012 Olympics is in danger of draining away because costs are likely to reach an astonishing £8 billion, according to a devastating report by members of the London Assembly.


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Transport upgrades

Campaigning lobby Rail Future have welcomed the 2005 Transport Select Committee's recognition that proposals must "fit into an integrated, long term transport plan" and leave a "legacy appropriate to the (ongoing) needs of [e]ast London". However, they query the extent to which the Government has agreed to fund basic improvements to the rail network in London.


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Legacy, infrastructure overload

Stadia

Maintenance costs for redundant stadia are significant. Kevin Blowe (2005) extrapolates:

In Sydney, underused venues are costing taxpayers A$46m (£18m) a year to keep afloat and will lose money for at least another decade. The Super Dome, where the closing ceremony was held, recently went into receivership. Six months after the Athens Games, the Greeks face a £6.25bn debt and £60m a year for the upkeep of its unused facilities.
Radical Activist Network newsletter, Spring 2005 www.radicalactivist.net


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Brown downplays VAT bill

The Treasury is in discussions with the Olympic Delivery Authority over the VAT bill. When the London bid was submitted to the International Olympic Committee in 2004, it included an estimate for building various sites in east London, but had presumed VAT would not have to be paid. Mr Brown said: "When we did the original application, there was one form of company organisation that might not have required VAT. "Now that we have looked at the thing in detail, there may be another form of company organisation for the Olympic deal.


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