The mandatory ceremonies will be directly funded from the London 2012 Organising Committee’s budget for the 2012 games. It is confident that the mandatory ceremonies will be funded within its £2 billion revenue budget. The bid projects and signature events and the UK-wide cultural festival will be delivered and funded in partnership with a range of public and private partners. For example, the £40 million Legacy Trust will fund cultural and sporting activity in the run up to the 2012 games.
The London Organising Committee for the Olympic Games and Paralympic Games will shortly set out more detail on the bid projects and the UK-wide Cultural Festival. The Cultural Olympiad is an opportunity for exciting proposals to be generated in the regions over the four-year period with funding being drawn in from a number of sources.
Meetings of the cost review group which took forward the work of the steering group were held on:
26 January 2006;
7 February 2006;
21 February 2006;
9 March 2006; and
25 April 2006.
KPMG were commissioned in October 2005 to provide advice on the cost of the Olympics. That advice was provided on an ongoing basis; and included KPMG being involved in the cost review set up to take forward the work of the cost review steering group.
The cost review steering group included membership from DCMS, HMT, ODPM (now DCLG), GLA, LOCOG, the interim ODA and KPMG. These organisations were also represented in the cost review group that was chaired by the Minister for Sport.
Dependent on the subject under discussion, representatives from HO, DfT, British Olympic Association (BOA), the Olympic Board Secretariat (now the Olympic Programme Support Unit) and Sport England were also invited to attend these meetings.
The cost review group chaired by the Minister for Sport assessed opportunities for reducing costs. This included the consideration of alternative options for the configuration of the Olympic park, alternative locations for venues, and for rationalising the design of supporting infrastructure. The group did not produce a report, although the output of its work informed decisions on the new Olympic park master plan announced on 7 June 2006.
I refer the hon. Member to the statement I made to the Culture, Media and Sport Committee on 21 November 2006, reported in paragraphs 48 to 50 of the Committee's report, published on 24 January 2007, where I stated that it was known at the time of the bid that the bid did not include VAT. The basis for that was the understood and agreed assumption that it was not possible to sort out the tax treatment until the delivery structures were in place, and that matter could not be known before the bid was won. This issue was taken forward as part of the cost review work, and I announced the VAT position in respect of the Olympic Delivery Authority in my statement to the House on 15 March 2007.
Following London winning the bid, I instituted a thorough review of costs and provisions for the Olympic games. This included consultations and discussions within Government, with the Olympic Delivery Authority (ODA) and with other delivery partners. This also incorporated consideration of what funds needed to be available, and by when. Following the conclusion of this cost review, I announced on 15 March 2007, Official Report, column 450, a budget for the ODA and on a number of issues including wider security, tax and contingency provision.
The work to develop the revised Memorandum of Understanding between the Government and the Mayor of London is progressing well. The revised Memorandum will be published as soon as possible, following its agreement.
(2) what provision is made for consideration of impacts on Scotland in the contractual specification and terms of reference governing KPMG's provision of on-going advice on the cost of the Olympic games in 2012.
After winning the bid to host the 2012 Olympic games, I instituted a thorough cost review. This cost review, to which KPMG provided advice, was overseen by the Olympic cost review steering group.
No specific assessment of the interests or impact to Scotland formed part of the drafting of the terms of reference of the Olympic cost review steering group, or the contractual specification and terms of reference governing KPMG's provision of on-going advice on the cost of the Olympic and Paralympic games.
The Government are committed to ensuring that people across the UK, including Scotland can benefit from, and participate in, the 2012 Olympic games and Paralympic games. We are working closely with the London Organising Committee of the Olympic games and Paralympic games (LOCOG) and the Nations and Regions Group (NRG), chaired by Charles Allen, which brings together representatives from every Nation and region. Each Nation and region is finalising its own plan to maximise the impact of the games in their area, as well as the wider opportunities to deliver a sustainable legacy from the games.
Further detailed information regarding Scotland’s plan can be provided by the relevant NRG Coordinator, Ian Campbell (Scottish Executive, Sports Division, Room 1-B(N), Victoria Quay, Edinburgh, EH6 6QQ).
In addition, Hampden Park in Glasgow will host group stages of the Olympic football competition. This will add significant strength to Scotland’s potential to benefit from the games.
I refer the hon. Member to the answer I gave to the hon. Member for Faversham and Mid-Kent (Hugh Robertson) on 6 November 2006, Official Report, column 565W and in my evidence to the Culture, Media and Sport Committee on 21 November 2006. My response sets out the basis on which VAT was dealt with in the candidature file prepared in 2004, and the action I took to initiate a review of costs and funding following the success of the bid in autumn 2005. This is also summarised in paragraphs 48 to 50 of the Committee's report published on 24 January.