Economy could threaten London Olympics
Friday, 20 June 2008 12:01 AM
The deteriorating state of the British economy could threaten the creation of London's Olympic Village, according to a progress report published today.
The report, by the National Audit Office, gives a generally positive account of pre-game preparations but it voices concern over economic uncertainty and security arrangements.
Tim Burr, head of the National Audit Office, said: "The preparations for the Games are well underway.
"But important challenges remain which will become more formidable as the spotlight turns to London after the Beijing Games.
"Uncertainties over the deal for the village, legacy requirements and policing and security may add cost or compromise the preparations for a successful Games."
The report says finalising a good deal with the private sector over the Olympic village - the largest single programme of the 2012 programme will be "challenging given the current uncertainties in the financial and property markets".
There are also concerns about the preparations for the Games' security aspect, with the report urging organisers to fully integrate policing and security planning.
Perhaps most interestingly, the report also casts doubt on how well conceived the Games' legacy is.
It calls on organisers to provide clarity about the use of the venues after 2012. "The longer the requirements are unclear the higher the risk that legacy will be compromised by the need to deliver the Games on time," it says.
That warning will ring in the ears of many East London authorities, who are hoping new mayor Boris Johnson is as intent on using the Games as a vehicle for regenerating the East End as his predecessor Ken Livingstone.
In terms of spiralling cost - a potential scandal in the making if organisers do not manage to clamp down on expenditure, the report says costs for high profile venues, such as the main stadium and aquatics centre remain higher than expected but have been offset by reduces forecasts elsewhere.
A new basis for tracking costs, which the report describes as "clear" should keep the budget within the agreed limit of £9,325 million, the authors say.
Liberal Democrat Olympics spokesperson Tom Brake said: "Concerns raised over the Olympic Village are particularly worrying.
"The failure to attract private funding casts doubt on how much it will cost the public purse and the amount that will be recouped from its sale."
Serious about politics?
Dedicate one year of your life to getting to the heart of current issues in global politics. Our courses allow you to specialise in development and policy-making, international relations, and political journalism and communications.
Newsletter sign up