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Taxpayer faces spiralling bill for Games as funding dries up
Matthew Beard, Sports News Correspondent30 Jan 2009
THE taxpayer may have to fund every Olympic venue because of the credit crunch, 2012 chiefs admitted today.
John Armitt, chairman of the Olympic Delivery Authority, said there was an increased chance that the £900 million Olympic village may not attract any private funding as planned.
His comments come after public funds were used last week to bail out the 2012 media centre after the private developer pulled out of the project.
Gallery: How the Olympic Park will look
During the 2012 bid, private sector money was pledged for the media centre and the village while all the sports venues were to be built from the £9.3 billion publicly funded budget.
Under original funding plans the Government and developer Lend Lease were to have jointly funded the village. But as credit has dried up the ODA has been forced to raid £326 million from the Olympic contingency fund.
Mr Armitt confirmed that the ODA could not "rule out" a complete failure of private sector funding for the village.
But as the impact of the credit crunch on the Games becomes clear, Mayor Boris Johnson has honoured his pledge to use 2012 to encourage sport participation on a local level by announcing a £15.5 million injection to boost grass roots sport in London.
The Mayor used his statutory power for the first time to direct the London Development Agency to allocate the cash from its budget over three years. At last year's Beijing Olympics he pledged to release the money in an effort to tackle growing obesity levels.
He described the injection as an "entirely appropriate" use of LDA funds.
Meanwhile, the first section of the roof for London's showpiece Olympic Stadium is being fitted this week.
With the first steel section of the roof being lifted into place, the height of the stadium is now almost 37 metres.
A 1,350-tonne crane has been used to lift each 85-tonne section while it is bolted to the roof-support columns.
Reader views (48)
WHAT A LOT OF MOANING MINNIES ITS GONA BE BRILLIANT. FOR GODS SAKE STOP BLOODY MOANING.ITS GONA BE A YEAR LONG PARTY IN LONDON.IM LOOKING FORWARD TO IT.
- c may, tatsfield, 19/01/2011 20:52
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I hope these Olympics Buildings are all well above sea level ready for the global warming,they are a wee bit extravagant just for a few months of track events,I think we will rue the day that this lot was started.
- Davey_Bouy, Chertsey, 16/12/2009 15:08
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There is absolutely no reason, in times of excellent world-wide satellite media coverage, to hold all the Olympic events in just one country. Why not hold each separate event in the country that already has the best facilities for an individual event? For instance, whichever country has the best running facilities should stage those events, which could easily, and surely be less of a drain on one nation's budget, be shown world-wide? This would also cut out the nauseating farce whereby bidding nations spend rather a lot of their taxpayers' money sucking up to the (extremely well-paid and open to corruption) Olympic Committee.
- R. Burnley, Isle of Wight, UK, 16/12/2009 14:08
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Surprise surprise
- Mel Barrows, Tenerife. Canary Islands., 16/12/2009 14:08
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This is getting beyond even a bad joke. More like Alice in Wonderland. Stop it all NOW.
- Gabrielle, London, 16/12/2009 14:08
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I've been saying this since July 05, and will say it again. "How long before council taxpayers in other parts of the UK besides London will have an extra charge placed on their council tax to pay for this glorified junket"?. Not one media group has had the guts to ask Tessa Jowell this question, simply because she would be put on the spot and forced to give a 'Yes' or 'No' answer, which would binding. How would they do it? Firstly, the extra tax would apply to those in the Home Counties immediately bordering London. Then, it would be extended to the whole of England, and then to Wales, and after a political scrap, to Scotland and N. Ireland. If not in the form of extra council tax, then a very crafty stealth tax would sprout up. Am I the only East Londoneer to see this?
- Joannie, London, England, 16/12/2009 14:08
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"drug fuelled "sportspersons" who earn fortunes for running round a track"
So how many of our Olympic winners have been found caught cheating by taking drugs then?
What needs to happen is the events that no-one actually cares about ought to be cut out leaving a few sports people will take note off.
At least this will reduce the need for numbers of stadia and athlete village space so saving costs.
- Mark, Watford, 16/12/2009 14:08
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yes robh , cancel the whole dam thing it's a White elephant in the making, when people are loosing their jobs & houses it's disgusting the endless millions are being spent on this.the only ones that want it are the the pigs with their snouts in the house of commons/lords trough & and a few over exagerated atheletes !!
- graham, carrickfergus,northern ireland, 16/12/2009 14:08
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The games should be cancelled immediately.
- Dee Jay, Fleet UK, 16/12/2009 14:08
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Cancel them now. How is a couple of weeks of sports worth millions going further into debt?
- Roger, Surrey, 16/12/2009 14:08
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We should never have done these in a place like Stretford.
- Jacqueline, Hampstead, London, 16/12/2009 14:08
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Since the people who vote Labour are not the same people who pay most of the taxes, what incentive do Labour have not to waste taxpayers' money?
When we "won" the Olympic bid, the first thing I thought was "remember the Dome fiasco"
- Tim, London, 16/12/2009 14:08
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When we won the bid in July 2005 nobody foresaw the global financial turmoil the world is now in. I think the IOC should give London the dispensation to hold the events in extisting sports arena that already exist in the UK.
I bet those countries that bid and lost 2012 are now thinking they had a lucky escape.
- Pete, London, 16/12/2009 14:08
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No problem. The taxpayer is already funding most of the Banks, public sector pensions, the car industry etc. gordon knows what he's doing - he'll just borrow some more and then look to recover it in hidden taxes later. Always assuming of course that those idiots that voted for Tony (and got Brown - as you were warned) are still daft enough to vote for New Labour again!!
- Malcolm, London, 16/12/2009 14:08
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Scrap them NOW. The French are really happy that we 'won' the games. We have had the Dome,WMD and Iraq,Rover - BMW, to name but a few financial disasters. Uk is bankrupt so why waste more tax payers money on the promise of feel good factor and jobs (not for Brits)?
- Mike, London England, 16/12/2009 14:08
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The 2010 Olympics are going to cost us $1.76 billion, at least that is what they are telling us NOW! By the time they are done? The sky's the limit...
- Unhappy Canadian, Canada, 16/12/2009 14:08
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So what if we have to borrow another few billion for the games. We already owe trillions and then there always ocean finance.
- Chris, Rochester, 16/12/2009 14:08
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People with anything upstairs despaired when we won the right to be fleeced wholesale to pay for the latest Drugs Games. Of course there is a certain perverted logic to our involvement that stems from the continuing recreation of the country under Gordon Clown as the new East Germany complete with a child kidnapping Social Services Stasi, a thought crimes police, and runners-up-and-down created and funded for Drugs Games glory by the state.
However many people seem to forget that when jobs to build the Drugs Games venues are created, paid for by taxes, they are at the expense of real jobs in the real economy providing things that real people actually want to purchase. In short real businesses have to be destroyed through taxation to invent such jobs. It's known as wealth redistribution and ultimately it's the reason why this country has a relatively low standard of living despite the supposed size of its economy.
And of course the final insult is that, when the drug-fuelled running-up-and-down is over, the stadia that sucked up taxpayers billions quietly fall into to ruin and disrepair until after they can be torn down without too much embarrassment.
Naturally there would be no such problem if these antics could be financed on a commercial basis funded at the turnstiles or by television subscription services. There is not the slightest chance of that because, surprise, surprise, people as a whole don't really give a monkey's about the whole wretched, boring, sick, nonsense.
- Martin, Welwyn Garden City England, 16/12/2009 14:08
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LOCOG DONT WANT TO SAVE MONEY,TAKE THE SHOOTING VENUE 42 MILLION AT WOOLWICH THEN PULL IT DOWN AND LEAVE NO LEGACY.THERE IS A VENUE 18 MILES FROM THE SAILING EVENT WHICH IS HOLDING THE OLYMPIC QUALIFIER IN 2010 AND COULD HOLD THE 2012 SHOOTING FOR LESS THAN 15 MILLION BUT LOCOG SAY NO IT IS GOING TO BE IN LONDON, AND WASTE ALL THAT MONEY. I HAVE LETTERS FROM COE STATEING COSTS ARE AN ISSUE, BUT IT WILL BE IN LONDON AT 42 MILLION.
- kevin, dorset, 16/12/2009 14:08
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Have you considered selling the games back to the French? Sure, there'd be some serious humble pie (something the current Government should look up anytime soon) - but think of the BILLIONS we'd save!
- Marianne, SW France, 16/12/2009 14:08
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We were praying Paris would win ...
- Annabelle, london, 16/12/2009 14:08
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Has this country turned into a self serving bureaucracy funded by the Tax Payers for the frivolous self indulgence of Faceless Bureaucrats.
If the likes of Sebastion Coe believe the Tax Payers should fund this venture,why does he not sell his house,plus use his life savings to fund such a frivolous self indulgence
- Barry Deane, Richmond, United Kingdom, 16/12/2009 14:08
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We MUST cut our losses immediately! Either we get assistance from other countries in respect of ALL of the outstanding necessary funding for the 2012 Olympics or they MUST be cancelled! This recession is NOT just affecting London, England and/or Britain . . . It is "global" and could yet develop into a full-blown depression.
Alternatively, the Olympic Authorities should simply put the 2012 Olympics "on hold" and allocate the next post-recession Games to London, as London has the necessary Games infrastructure about halfway in place. It is high time that the Authorities got their feet firmly back on the ground and re-joined the real world, where deep "recessions" - like the one we're currently in - truly affects everyone!!!
- Fraser, Telford Park, 16/12/2009 14:08
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Why don't we all refuse to pay the council tax? Then Lord coe and his rich friends can pay for it.
I don't want the games here, they are corrupt and just an advertising junket for multinationals and drug fuelled "sportspersons" who earn fortunes for running round a track.
- Kerry Trubee, purley, 16/12/2009 14:08
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Please can we stop the madness of Ken and Seb right now ?
I never wanted this political sham in the UK, and certainly don't want to pay even more Taxes for facilities that will be under-used and cost a fortune to maintain.
- Cap, london, 16/12/2009 14:08
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So we need 900 million to fund the sports village, and a few more million for this and that.
Mr Brown is giving BILLIONS and BILLIONS away to people in suits, whats a few million now a days.
- Mrs.Port, London, 16/12/2009 14:08
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So bacially the taxpayer has now had to pay for all the funding of the games. Couldnt the Olympic venues just use some sort of flat pack facilities that could be reused every 4 years?, then all we'd need is a bit of land somehere to reassmble it all and transport costs. Prob get IKEA to do it. Much cheaper in the long run don't you think?.....
- Dc, London, 16/12/2009 14:08
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Martin - I think its a disgrace to keep on call the Olympics the "drugs games"...again I ask how many of our hard working atheltes have actually been found guilty of taking them?
I take more pleasure out of watching our winners in the Olympics than the overpaid footballers who earn millions but win nothing and the thugs that follow the games.
At least our children can inspire to be like the next Chris Hoy or Becky Adlington rather than be the next sour graped cheating Wayne Rooney.
- John, London, 16/12/2009 14:08
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For those saying it should be cancelled; are you going to tell the 10,000 workers on the site they haven't got a job to go to tomorrow?
- Robh, London / Kent, 16/12/2009 14:08
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The games is doing when Ken wanted them to do and that is regenerate this part of East London. Its no good complaining about threats to green belt if we dont make use of old inner city locations and Ken knew the games was a big enough event to kick start this regeneration.
In the long term the added value of the games will be far greater than the cost of the games which is NOT the £9.3 billion figure a sum that was inflated by the government and which includes upgrade works which are not part of the games.
Ken did not want to say this amount publically as he knew it would be used as a gravy train by those bidding for contracts. However, Boris let the cat out of the bag and now we can look forward to a load of fat-cats.
As for the Dome that was a TORY project which was thought up by Michael Hestletine and inherited by Tony Blair when he won the 1997 election. Just goes to show how short memories tory supporters have. Of course it took a Labour Government to turn it into the O2 the most successful entertainment venue in the world!
- Melvyn Windebank, Canvey Island, Essex, 16/12/2009 14:08
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Of course, tax payers may have to fund most of the olympics. No problem. As the tax payers are the majority share-holders in two of our biggest banks, the Lloyds Banking Groups and RBS will be take care of the extra fundings.
- jo, London,UK, 16/12/2009 14:08
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I think the ES have got their wires crossed. The Olympic village and media centre are only two venues that will receive money from the contigency funds to pay for their construction, not 'every' Olympic venue as said in the headline. This contingency fund has also been budgeted for in the £9.3 billion total which was announced two years ago, so the taxpayer is not paying any more to the Olympic project than they were expected to when that budget was announced.
The Olympics is generating thousands of jobs in times of economic decline, surely a good reason to keep its momentum going. Once the land is cleaned up London will be left with a massive new park and reclaimed land for housing, as well as better transport links. Something London desperately needs for its future survival when the good times roll around again.
- Darren, London, 16/12/2009 14:08
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The general problem is clearly the Government have run out of money to actually build and set up for the London 2012 games in the first place.
Lets be honest I enjoy the Olympics but quite frankly I fear we won't actually be ready on time and like the M Dome farce this country will look silly.
Feel a bit sorry for the athletes because the attention should be on them and how they are looking forward to it but all we see are stories ( about how much of a mess its going to be and how the taxpayer is going to be forced to pay for years after the event.
- Mark, Watford, 16/12/2009 14:08
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These extra funds are coming from the already budgeted contingency fund. The vast majority of the 9.3 billion pounds will go back into uk industry creating and securing jobs and businesses. Where's the issue?
- Andrew, London, England, 16/12/2009 14:08
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SURPRISE, SURPRISE
- Mr S.Port, London, 16/12/2009 14:08
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There's no money for the shortfall in maintaining Buckingham Palace - but there's going to be £900m for this, which may even be left to ruin.
- Roz, Chamonix, France, 16/12/2009 14:08
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If it all comes in at under £15bn I'll be surprised. Mind you the Govt. will have to impose a LifeTime (tm) Olympic tax of 5% for everyone except of course Govt. ministers to pay for this mess.
- Marc, Harrow, UK, 16/12/2009 14:08
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It really is no big surprise is it - the costs were vastly understated, deliberatly, during the bidding process in order to secure the games and have spiralled since day one.
There has always been a certain inevitability that it would end up with the taxpayer paying for the whole thing. Businesses only ever want to get involved in these things were there's going to be a big return for their involvement - look at all the railway companies etc - profits up, service down. Only losers - taxpayers!
- John, London, 16/12/2009 14:08
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Got a money problem? No worries! Come to the Taxpayers' Friendly Bank. We have unlimited funds to give away! Absolutely unlimited! No questions asked. No approvals. Lowest interest rates. Don't waste time looking elsewhere. No-one can beat us! Ask and you will receive! Contact us now:
gordonandalistair@westminster.org
- John Problem, Hackney Wick, London, UK, 16/12/2009 14:08
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Surely all the taxes are used up already bailing out the bankers, which might have some kind of advantage for us in the long term. But the Olympics? No. Just cancel it for heavens' sake. It will make us look stupid, but we look stupid anyway.
- Jilly, London, 16/12/2009 14:08
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Suggest Lord Coe could work his way to the top of the peers expenses trough and then donate it towards his personal favourite white elephant. Was his peerage another T.Bliar Christmas present? His time and energy would have been far better put to use in raising funds to provide facilities to train up and coming runners for the future,and less expensive for taxpayers than the second millenium dome. Olympic Village for sale, only used once - mortgaged until 2020.
- Thorrun, Brentwood UK, 16/12/2009 14:08
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Just for once, give the taxpayer what they want. Cancel the Olympic games that no-one wanted in the first place.
Of course, if there are a couple of people who do want it. Let them pay for it.
It's been nothing but trouble and will continue to be for a generation.
- ann, London, 16/12/2009 14:08
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Beware! the roof within six months. The structure NOT the cost.
- Jon Vickers, SC USA, 16/12/2009 14:08
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We're still paying off the 2000 Olympics!
Good luck
- Gara, Sydney, Australia, 16/12/2009 14:08
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will someone please try and make an educated assessment of just how much 'new labour's' obsession with itself and its 'grand' projects have actually cost the British taxpayer...from the Dome (Doom!), to the 'grants' to the private railway companies, to the Olympics (also known as the 'Holelympics'..because of all the money being poured into a big hole), and anything else they can think of.....and all of those even before the inclusion of the ludicrous bail-out of Brown's banking buddies..!!
- Mark H, cambs uk, 16/12/2009 14:08
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I remember thinking on the day we won the Games that we would be paying through the nose for it for years to come. How I would love to have been proved wrong, but alas, Londoners will be funding this farce for decades to come. What a joke - a lot of Londoners never wanted the Games but it was forced upon us, and it just gets worse day by day.
- Shirley, London, 16/12/2009 14:08
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It was clear from the outset that Livingstone, Coe, and the other "hangers on" who were involved in the bid for the games were lying and cheating in order to secure them. Every other person in this country knew we would never be able to deliver within budget. Tessa Jowell should be removed from office for her part in this scandal. AS A TAX PAYER I REFUSE TO FUND THE GAMES. The only people in this country who will benefit from the games will be Coe, Livingstone, Jowell and a few other parasites
- R.F., Yorks, UK, 16/12/2009 14:08
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So if the reports are correct and millions of people are going to be without jobs before 2012 and things are going to be as bad as the 1930's, where are these taxes coming from. I think this country needs to take stock now of all the money wasted, starting with a pointless war that is costing us billions.
- Pamela Mckay, Dagenham, Essex, United Kingdom., 16/12/2009 14:08
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