[holding answer 16 July 2007]: In my previous answer to the hon. Member for Faversham and Mid-Kent on 9 July 2007, Official Report, column 1291W, I stated that the Department for Culture, Media and Sport (DCMS) had not employed consultancy firms to work on the 2012 Olympic Games and Paralympic Games in the current financial year (2007-08) and that two consultancy firms were employed in 2006-07.
However, it has since come to light that during 2006-07 a total of six consultancy firms were employed by DCMS on Olympic-related business. One of these firms continued to work on Olympic-related business in 2007-08 and a further four consultancy contracts had also, as of 9 July, been entered into during 2007-08.
The total costs incurred for consultants employed in 2006-07 was £721,266.36 (including VAT) and for those commissioned as of 9 July 2007 was £202,314.33 (including VAT).
Since my answer of 9 July, the Department has entered into five further Olympic-related consultancy contracts. Their costs are not included in the aforementioned figure.
The cost of consultancy firms employed by the Olympic Delivery Authority in 2006-07 was £50,494,000 and in 2007-08 (as of 9 July) was £10,753,000. A significant percentage of these costs is attributed to five major contracts in 2006-07 (Atkins, EDAW Limited, Ernst and Young LLP, Ove Arup and Partners Limited, and Rockpools) and three major contracts in 2007-08 (Atkins, EDAW Limited, and Ove Arup and Partners Limited).
These costs reflect the process of establishing the ODA, and building up organisational capacity, while ensuring key delivery milestones are achieved.