Committee of Public Acounts: Press Notice

A STATEMENT FROM EDWARD LEIGH MP

CHAIRMAN OF THE COMMITTEE OF PUBLIC ACCOUNTS

National Audit Office report: The Budget for the London 2012 Olympic and Paralympic Games

“The announcement of the £9.3 billion budget for the London 2012 Games is a step forward. It reflects a very big increase in costs from those envisaged at the time of the bid, but I welcome the Department’s assurance that this is the absolute limit. Indeed, I expect every effort to be made to manage within this amount.

I’m also pleased to hear that, since it was announced that London had won the Games, the Department has been thorough in developing the budget. I am, however, concerned that areas of significant uncertainty remain. These have the potential to drive up on costs. For example, how contractors will actually respond to the Olympic Delivery Authority’s invitations to bid for work and the terms of contracts subsequently agreed, construction price inflation, the level of funding that can be secured from the private sector for building the Olympic Park and Village, and the ongoing security situation. This uncertainty is reflected in the very high level of contingency funding.

Ultimately, it remains unclear exactly what we’re going to get for the money. Designs for the venues have yet to be finalised and their legacy use is far from certain.

Ends

Notes for Editors

Requests for further comment from Edward Leigh should be made via Alex Patterson, Select Committee Media Officer, on 020 7219 1589 or 07917 488488