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Taxpayers could foot whole bill for £1bn Olympic Village
Matthew Beard, Sports News Correspondent08.10.08
Games chiefs today admitted they may be forced to nationalise the £1 billion Olympic village amid the current economic turmoil.
The Olympic Delivery Authority said their search for private funding for the village had "deteriorated" and taxpayers may have to foot the entire bill.
The ODA has budgeted £250 million for the complex in Stratford but a complete bail-out would require another £750 million from public funds.
The authority today released images of how the village would look after the 2012 Games - when the Government hopes to recoup the cost of the project through a sell-off of its 2,800 flats.
Village developer Lendlease has struggled to raise capital and Olympics chiefs are expected to ask for a first tranche of contingency funds next week.
Games officials are trying to put together a rescue package of public funds with help from the Government's Homes and Communities Agency.
ODA chairman John Armitt today told the London Assembly he would hold out for a few more months in the hope that credit would be easier to come by.
Asked about nationalisation, Mr Armitt said: "That would be an extreme situation but it's not one we are working towards. We are trying to avoid it arising. It's important we don't rush in to strike an agreement today when it's not the right time to do that." However, he added: "Nobody knows what the worstcase scenario will be. We are still in negotiations with banks and Lendlease but attitudes change day by day. You would have to say in the last few weeks that the situation has not improved.
"I think the important thing is that we don't feel we have to rush into something which doesn't necessarily give us the best value we can achieve, then we look back in three months' time and realise we could have done a better deal with less public sector contribution."
The ODA say they have cut village capacity by 500 flats by mothballing plans for four 30-storey high-rise blocks. Instead they have retained low-rise buildings better suited to athletes' needs. Mr Armitt insisted the village had changed only in scope. "We are not in the situation where it would be wise to change the design," he said.
Some media facilities may move to the new Stratford City development. The ODA is looking to reduce the £380 million cost of the media centre in the village after the developer struggledto raise its £160 million share. The authority's chief executive David Higgins said: "We are looking at all options and in this market we are looking at driving down costs. More of the studios will be temporary than in a different market because it's no use having a building there when values have deteriorated."
Reader views (17)
Here's a sample of the latest views published.
Bit harsh as they aren't all on drugs for sure but still wasted money anyway.
- Mark, Watford
And all this waste of money for 2 weeks of drug running.
- Alan, Chigwell. UK.
Is anyone surprised? If so Londoners must be truely ostritches or powerless.
- James, Leicester
The ODA says flats will be better suited for the athletes needs! Excuse me but the athletes are housed for a few weeks, yet they are being pampered like demi gods, Londoners will have to live in them for years after the games are gone, these flats should be built "better suited for Londoners needs. By the way ..who won the mens 200m? exactly.
- David, London
Looks like the Banks are being nationalised so why not the Olympic Village. What next? The Power Companies?
- Mick, London, England
Ever since the games were awarded Londoners have had an extra amount put on their council tax although all the London Boroughs will not benefit from it (the borough I live in wont), and still we are going to have to pay more.
Steve from London, it is attitudes like yours that leads to National Pride being lost.
- E Sullivan, London
More pockets get lined and we get left with the bill. We don't care for the olympic games in London, put some of that money into our schools and into sports facilities for our schools instead of selling off school playing fields to property investors. How many potential olympic golds and wimbledon winners are in Britain but will never be discovered. Our country has become a joke! I'm going to buy land on the moon!!!
- W Joseph, London, England
Isn't it strange that amongst all the jingoistic ballyhoo when the games were awarded to London rather than to Madrid or, God forbid, Paris; there was not much mention of or concern about the possible cost.
I must agree with Andy of London that if 2,800 flats can be built in a relatively short space of time for such a small cost without a need for a return of significant profit on investment then ,perhaps, governtments should never have stopped doing it. Maybe society would then not now be as fragmented as some say it is.
- Teifion, ibiza spain
Is there really a good reason to continue the "olympics" In recent years it has become a venue of political discourse and posturing, not to mention the threat of terrorist action. I am also sure we do not want to have to pay almost 2BN pounds and the projected costs will surely rise!
- John (Brit Exp Pat), Phoenix USA
Er, I thought it was Parliament that chose whether to nationalise stuff or not, not a bunch of unelected bureaucrats. Since it's such a spiffing scheme, why don't Coe and Co just set up a development company and issue shares, and watch the profits roll in?
- Mdj, Leyton, e10 london
Yes you are right Andy and they will all go to the immigrant residue left over from the "games" Once these third world atheletes get into these houses do you think they'll ever leave - except to sign up of course.
- Frank, England.
how many holidays and bungs are to be funded by the taxpayer? boris should look into this unless he has a holiday planned
- Rob Stead, belgium
John, its £20Bn. Take my word for it.
- Jimbob, Kensington
Is there anything the taxpayer is not going to be forking out for these days?
It seems like the Government has money to burn, because the taxpayers are a bottomless pit of reserves.
- Smb, London, UK
If we can't afford it then pull out.Don't worry about our national pride.We lost that years ago.
What a laughing stock.I love it.
- Steve, London
If the properties are 'nationalised' this must mean that the properties belong to the state and means that there will be a large number of new council properties/social housing available once the athletes have left which will replace the stock that was sold off under the Tories.
- Andy, London
Is it not odd that nobody seems able to tell us how much he games are going to cost but as soon as there is a glitch they can immediately come up with another precise amount for their begging bowl.
- John J, Edinburgh, Scotland
