Despite the fact that we are now facing the worst recession for decades, the costs of the 2012 Olympics are defying normal economic laws during a recession and are continuing to rise.
The Telegraph reports that the cost of venues have risen by £97M in the last year, and are projected to rise by a total of £371M by 2012. It also notes that there is now only £500M of the £2BN contingency fund left to cover unforeseen emergencies and shortfalls.
Despite all of this the hapless Olympics Minister, Tessa Jowell, stated:
"This shows we are on course to remain on budget despite the economic downturn."
Jowell may care to reflect on the accuracy of that statement. The original "budget" for the Olympics was around £3BN, it now currently stands at £12BN (including £2BN running costs).
Precisely how can she claim, with a straight face, that the budget is "on course"?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Friday, 6 February 2009
Wednesday, 4 February 2009
Biometric Security Delayed
Plans to introduce face recognition and fingerprint technology to control entry to the 2012 Olympics construction site are still out to tender. This is despite the fact that thousands of construction workers are already on site, constructing the building of a "ring of steel" fence around the Olympic Park.
The high tech security was meant to be in place by now.
An Olympic Delivery Authority (ODA) claim that the current interim measures are robust.
That being the case, why do they need to to waste money on a high tech replacement?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
The high tech security was meant to be in place by now.
An Olympic Delivery Authority (ODA) claim that the current interim measures are robust.
That being the case, why do they need to to waste money on a high tech replacement?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Tuesday, 3 February 2009
Gagged?
BBC London claim to have found that some contracts between the London 2012 Olympic Delivery Authority (ODA) forbid the contractors from talking to third parties (without ODA permission) about costs, plans and other issues.
The BBC also claim to have seen contracts that allow the ODA to search companies' premises and emails, if they are suspected of breaching the confidentiality clauses.
The ODA deny this, and are quoted in the Telegraph:
"We have not seen the contracts to which the BBC are referring but we have an excellent record on transparency."
I guess the BBC were mistaken then?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
The BBC also claim to have seen contracts that allow the ODA to search companies' premises and emails, if they are suspected of breaching the confidentiality clauses.
The ODA deny this, and are quoted in the Telegraph:
"We have not seen the contracts to which the BBC are referring but we have an excellent record on transparency."
I guess the BBC were mistaken then?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Monday, 2 February 2009
Lawyers To Make a Killing
Every cloud has a silver lining, and it should come as no surprise to learn that even if the Olympics are a colossal waste of money and that we are facing the worst recession for decades, lawyers will still make money out of the games.
That at least is the view of Charles Tomlinson of Mace & Jones'.
He is quoted on Heating and Ventilating News:
"When London was awarded the Olympics the construction sector was booming. It was a welcome bonus for the sector. Now it will be seen as vital for the survival of many companies at time of unprecedented crisis in the sector.
With margins going through the floor and the commercial sector in freefall, all parties will be looking to protect their positions. This is not the ideal environment for a project of the scale and importance of the Olympics.
If, or example, you are waiting payment, does the other party have the means to pay? If so, a well timed adjudication can protect cash flow.
In relation to more complex disputes, parties must consider alternative forms of dispute resolution such as mediation, expert determination or just good old fashioned commercial negotiation to keep the project alive".
The lawyers will at least do very well out of the games!
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
That at least is the view of Charles Tomlinson of Mace & Jones'.
He is quoted on Heating and Ventilating News:
"When London was awarded the Olympics the construction sector was booming. It was a welcome bonus for the sector. Now it will be seen as vital for the survival of many companies at time of unprecedented crisis in the sector.
With margins going through the floor and the commercial sector in freefall, all parties will be looking to protect their positions. This is not the ideal environment for a project of the scale and importance of the Olympics.
If, or example, you are waiting payment, does the other party have the means to pay? If so, a well timed adjudication can protect cash flow.
In relation to more complex disputes, parties must consider alternative forms of dispute resolution such as mediation, expert determination or just good old fashioned commercial negotiation to keep the project alive".
The lawyers will at least do very well out of the games!
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Friday, 30 January 2009
The Olympic Tax Bill
It would seem that the long suffering British taxpayer may end up having to foot the bill for every major venue for the unwanted London 2012 Olympic Games.
For why?
Private finance has dried up.
That at least is the view of John Armitt, the chairman of the Olympic Delivery Authority. He has come clean, and admitted that no private sector money can be found for the £1BN Olympic village (which itself is already over budget by £326M).
Those of you with long memories may well recall that when Britain convinced the IOC that we were capable of putting this together, the total "budget" for the games stood at less than £4BN. Currently it now stands at £12BN (including £2BN running costs), and is likely to continue to rise.
Armitt is quoted in the Independent:
"Clearly, if we finally finished up with no private sector investment in the village, that would require a further contribution from the public sector.
At the moment we're still in negotiation, and we're still optimistic that we'll get to a point where we've got a private sector offer on the table and contribution to the village."
He then added that there may well be a complete failure of private sector funding for the village.
The 2012 London Games will stand as a monument to the folly, arrogance and ego of ZaNuLabour, which foisted them on to an unsuspecting and docile public several years ago.
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
For why?
Private finance has dried up.
That at least is the view of John Armitt, the chairman of the Olympic Delivery Authority. He has come clean, and admitted that no private sector money can be found for the £1BN Olympic village (which itself is already over budget by £326M).
Those of you with long memories may well recall that when Britain convinced the IOC that we were capable of putting this together, the total "budget" for the games stood at less than £4BN. Currently it now stands at £12BN (including £2BN running costs), and is likely to continue to rise.
Armitt is quoted in the Independent:
"Clearly, if we finally finished up with no private sector investment in the village, that would require a further contribution from the public sector.
At the moment we're still in negotiation, and we're still optimistic that we'll get to a point where we've got a private sector offer on the table and contribution to the village."
He then added that there may well be a complete failure of private sector funding for the village.
The 2012 London Games will stand as a monument to the folly, arrogance and ego of ZaNuLabour, which foisted them on to an unsuspecting and docile public several years ago.
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Tuesday, 27 January 2009
"Irresponsible" Pubs To Be Shut
Cllr Colin Barrow, leader of Westminster City Council, has warned that "irresponsible" pubs will be shut in the run up to the 2012 Olympics.
Cllr Barrow has also threatened to find out which venues have served drunks.
Could he define exactly what constitutes "drunk" and "irresponsible"?
In the event the 2012 Olympics actually happens, and London accommodates millions of sports fans, there are a number of more pressing issues that the council and tourism industry need to address eg:
-The trains, buses and tubes work and run beyond midnight
-There are clean and numerous facilties such as toilets in London
-The pubs, clubs and other night spots are open for trade late into the night
-Hotels don't rip people off with extortionate charges and lousy substandard rooms/service
In other words, London has to be made far more welcoming and tourist friendly than it currently is.
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Cllr Barrow has also threatened to find out which venues have served drunks.
Could he define exactly what constitutes "drunk" and "irresponsible"?
In the event the 2012 Olympics actually happens, and London accommodates millions of sports fans, there are a number of more pressing issues that the council and tourism industry need to address eg:
-The trains, buses and tubes work and run beyond midnight
-There are clean and numerous facilties such as toilets in London
-The pubs, clubs and other night spots are open for trade late into the night
-Hotels don't rip people off with extortionate charges and lousy substandard rooms/service
In other words, London has to be made far more welcoming and tourist friendly than it currently is.
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Monday, 26 January 2009
Rogge In Denial
The International Olympic Committee (IOC) president, Jacques Rogge, has rather bizarrely claimed that the London 2012 Olympics has not overshot its budget.
This is rather an "odd" statement given that the original "budget" for the games was £3.4BN, it currently stands at £12BN (including £2BN running costs) and is likely to rise further.
Rogge clearly does not have good grasp of financial matters.
He went on to claim that, despite the recession, the scale of the Games should not be rolled back.
Maybe he will help make up the shortfall out his personal finances?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
This is rather an "odd" statement given that the original "budget" for the games was £3.4BN, it currently stands at £12BN (including £2BN running costs) and is likely to rise further.
Rogge clearly does not have good grasp of financial matters.
He went on to claim that, despite the recession, the scale of the Games should not be rolled back.
Maybe he will help make up the shortfall out his personal finances?
Olympic Medals won during the Beijing 2008 Olympics
Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"
Subscribe to:
Posts (Atom)