Skip to main content

Olympic Games 2012: Finance

Volume 474: debated on Monday 31 March 2008

To ask the Minister for the Olympics when she plans to publish estimated costs for (a) the aquatic centre, (b) the velodrome, (c) the international broadcast centre/media and press centre and (d) the athletes village. (197581)

We will make an announcement shortly that will include an update on the Aquatics Centre and the Velopark, of which the Velodrome is the main component. The combined public sector budget for the IBC/MPC and athletes village is £492 million (inc. VAT) as announced in December 2007. However, as the negotiations on both projects are continuing and commercially sensitive, it is not yet possible to announce information on costs.

To ask the Minister for the Olympics (1) what assessment she has made of the impact of instability in the financial markets on provision in the Olympics 2012 budget for (a) the athletes village and (b) the international broadcast centre/media and press centre; and what the current estimated budget for each venue is; (197582)

(2) whether she has had recent discussions with Bovis/Lend Lease on the size of the public sector contribution to the athletes village.

The Olympic Delivery Authority (ODA) and officials from the Government Olympic Executive are meeting regularly with Bovis Lend Lease, the Department for Communities and Local Government and the Department for Children Schools and Families as commercial discussions continue.

The combined public sector budget for the IBC/MPC and the Olympic Village is £492 million (inc. VAT). However, the exact value of the overall public sector contribution will be finalised as these negotiations are closed out over the coming weeks. Negotiations are also still under way with potential developers of the International Broadcast Centre and Main Press Centre. In both cases, as sensitive commercial dialogue continues, the details of any potential impact of the current economic situation, or the project costs cannot yet be announced.

To ask the Minister for the Olympics when she plans to start publishing (a) monthly cashflow and (b) quarterly financial updates for the 2012 Olympic Games. (197585)

Cross-party support and proper scrutiny on the progress we are making on the Olympics is critical to the success of the games. To maintain this and to provide transparency on the games, we will publish a progress and financial report every six months—the first was published on 23 January 2008 and the next is due in June 2008. In addition I have put in place arrangements so that the hon. Member and other Opposition spokesmen may receive regular briefings on Olympic progress, including costs and cash flows. These will continue.

The Olympic Board receives monthly reports including cashflows and publication of these would not be appropriate as this could give rise to commercial disadvantages.

The Government have already made much information available, for example, Chapter 20 of the CSR White Paper published on 9 October 2007 sets out the Government’s contribution for the next three years (2008-09 to 2010-11). The balance of the funding requirement will be met, as planned in March 2007, from contributions from the Mayor of London (GLA and IDA); from funding already coming in from Olympic lottery games; from the funds to be transferred from the National Lottery Distribution Fund; and from funds from the Sports Lottery Distributor.

Further details of ODA’s annual cash flows will be set out in future business plan summaries, which will be published in the coming weeks.