Lend Lease have made it clear that raising the money is ultimately the government’s problem and it is now highly likely that taxpayers will have to bail out the project”.

Mr Bacon added:

“The Department for Culture, Media and Sport wants British athletes to come at least fourth and second in the 2012 Olympic and Paralympic Games respectively.  The Department aims to raise £100 million from the private sector to help British athletes win medals in 2012”. 

“However, the Department has nothing to offer would-be donors and has no fundraising experience.  There are no guarantees that the private sector is prepared to cough up £100 million, especially at a time of economic uncertainty”. 

“Instead, the Department seems to have a Micawberish belief that ‘something will turn up’.  It needs to be crystal clear about how it is going to find this money”. 

Mr Bacon was speaking as the Commons public accounts select committee published two reports into the preparations for the 2012 London Olympic and Paralympic games today (Thursday 24 July 2008).  The report into the delivery of the 2012 London Games finds that the global credit squeeze has particularly affected the ability of Australian firm Lend Lease to raise its £450 million share of the Olympic Village investment.   

In June 2008, a report on Olympic preparedness for the Mayor of London said that the Olympic Delivery Authority (ODA) is exploring other options for the financing of the Olympic Village, but that all scenarios for the successful completion of the project are likely to require significant additional funds from the taxpayer.

On 21 June 2008, a Lend Lease spokeswoman told the Times newspaper that: “Getting funding is essentially the ODA’s problem. If all the parameters can’t be met, we won't do it as a developer”. 

The committee’s separate report into the preparations for sporting success in 2012 finds that the Department for Culture, Media and Sport and UK Sport have set goals for the Great Britain teams to finish fourth and second in the 2012 Olympic and Paralympic medal tables respectively.  To support these goals, the Department is required to raise £100 million from the private sector and plans to start its fundraising after the Beijing 2008 Games.  The Department is optimistic that it can attract private sector donors and confident it can raise the £100 million. 

However, the report finds that the Department for Culture, Media and Sport has no experience of raising such funding, could not say what it had to offer potential donors and could not guarantee that the private sector would be willing to contribute as much as £100 million in funding.

24 July 2008
 

See also:
PAC REPORT: Preparations for the 2012 Olympic Games
PAC REPORT: Preparations for sporting success in 2012
PARLIAMENT: Olympic security ‘non-negotiable’, says MP
PARLIAMENT: Olympic budget ‘smoke and mirrors’, says MP
PARLIAMENT: Over-optimism on funding could cost medals
PARLIAMENT: Olympics budget worthy of ‘Del Boy’ says MP
PARLIAMENT: Olympic Civil Servants should stay put
PARLIAMENT: Chancellor 'dragging his heels' over Olympics - MP