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Olympic Games 2012: Finance

Volume 494: debated on Thursday 25 June 2009

To ask the Minister for the Olympics what her latest estimate is of the cost of hosting the London 2012 Olympic cycling events at the VeloPark. (280509)

The London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) has responsibility for staging the Olympic and Paralympic games including cycling events at the VeloPark.

The VeloPark is being constructed by the Olympic Delivery Authority, and in the latest London 2012 Olympic and Paralympic games Quarterly Economic Report (May 2009), the current anticipated final cost (AFC) of the venue is reported at £94 million (net of external funding contributions and anticipated VAT savings totalling £11 million).

The direct costs associated with staging the events at the VeloPark come from LOCOG’s revenues which are primarily derived from commercial sponsorship, broadcast rights, ticket sales and merchandising/licensing—not from the public purse.

There will be attributable costs to the public purse from London 2012 venues, including the VeloPark. However, these costs such as in security and transport systems have not yet been identified separately for individual events and will form part of the overall security and transport budgets.