The Olympics

The Olympics


News, information and stories about the Olympic Games.

Tuesday, 23 January 2007

Costs of London Olympics 2012 Soar

The Culture Select Committee will launch a scathing attack on the government's incompetent handling of the London 2012 Olympics tomorrow, when they will accuse the Treasury of adding £2BN to the costs.

Costs have already risen as a result of security, construction inflation and a Treasury ruling that the Olympics Development Authority must pay VAT.

However, the committee will tell the Treasury to be more willing to pay the extra costs and not insist that all the extra funding has to be found from the national lottery.

The committee will also note that the Treasury's 60% contingency fund is excessive.

The latest estimates are that the Olympics will cost £8BN. Realists argue that the costs will be more likely to hit £12BN.

One major problem with the Olympics is that is is viewed very much as being one of Tony Blair's pet projects, as such Gordon Brown is vehemently opposed to funding the games.

One thing that is clear from this, is that politicians should not be allowed to run major projects such as the Olympic Games.

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