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Government Olympic Executive

Volume 527: debated on Thursday 12 May 2011

I am publishing today the Government Olympic Executive’s quarterly report—“London 2012 Olympic and Paralympic Games Quarterly Report May 2011”. This report explains the latest budget position as at 31 March 2011, and outlines some of the many wider economic and social benefits to the UK.

The overall public sector funding package for the games remains at £9.298 billion. As reported in the annual report in February this year, the breakdown of the funding package altered from April 2011 reflecting the changing focus of the programme from construction to the operational delivery of the games. We continue to seek value for money and cost savings in our day-to-day running of the project. Through a combination of further savings achieved in the quarter together with reducing risks, the overall anticipated final cost of the Olympic Delivery Authority (ODA) programme has reduced by £35 million to £7.266 billion.

The ODA continues to make strong progress in preparing the venues and infrastructure in the Olympic park with 83% of the games-time construction programme now complete. The last piece of turf on the Olympic stadium’s field of play was laid in March, marking the completion of construction on the flagship venue. Construction started on the Olympic stadium just under three years ago in May 2008 and has been completed on time, under budget and with an exemplary safety record. Over 240 UK businesses have won contracts for the construction of the stadium and over 5,250 people have worked on the project over the past three years.

This quarter also saw the completed 6,000-seat velodrome unveiled in February. After the games, the legacy velodrome will be used by elite athletes and the local community and will include a café, bike hire and cycle workshop facilities. The ODA will also today announce that the handball arena is complete and that the basketball arena is nearing completion.

The London 2012 Olympic and Paralympic games are continuing to help businesses and people through the difficult economic times. Some 100 companies that have worked on the 2012 games have had their achievements highlighted in the first edition of “Springboard to Success” which was launched by UK Trade and Investment (UKTI), the ODA and LOCOG at Sport Accord. The directory showcases 400 UK companies specialising in major infrastructure and sporting project supplies who have won contracts at domestic and international sporting events including London 2012, with a view to helping them win more work in this billion dollar sector. Notable contracts awarded by LOCOG in the last quarter include an agreement with G4S Secure Solutions (UK) for recruiting, training and managing a 10,000-strong security work force for the games. The terms of this major contract provide for extensive insurance coverage to address potential liabilities, and beyond this, LOCOG has agreed to indemnify G4S for certain claims which cannot be covered by insurance. The Government have confirmed that in the event of a shortfall between LOCOG’s revenues and its costs, LOCOG’s indemnification obligations would be covered by the Government as ultimate guarantor of games funding.

The games will also provide a golden opportunity for the tourism industry. The Government’s tourism policy, published in March, aims to help the tourism industry achieve its potential for growth through a range of measures including creating a sustainable new model for destination marketing and management, taking advantage of the series of major events which the UK is due to host over the next few years. Major companies have already pledged support to help match the £50 million of public money the Government have committed through VisitBritain. This initiative aims to generate 4 million extra overseas visitors over the next four years bringing in an extra £2 billion-worth of visitor spend and helping to create 50,000 new jobs across the country.

I would like to commend this report to the Members of both Houses and thank them for their continued interest in, and support for, the London 2012 games.

Copies of the quarterly report May 2011 are available online at www.culture.gov.uk and will be deposited in the Libraries of both Houses.