LONDON OLYMPICS BUDGET

Before I start to comment on this news item let me set the scene. I have been a lifelong Labour supporter. However, I have become more and more disillusioned even with Labour politicians (always was about the Tories). I now firmly believe that all power corrupts. Once they get their feet in the trough they're all as bad as each other. On to the comment.......

The budget for the 2012 London Olympics has risen to £9.35bn, Culture Secretary Tessa Jowell (Before her election to Parliament in 1992, Tessa had a career in psychiatric social work, social policy and public sector management - (sounds a bit 'Archerish' to me), told MPs. Tessa and husband David Mills were said to be separating. Mr Mills' lawyer said their marriage had been put under "strain" by the controversy over their finances (so they get them wrong too?). Ms Jowell was recently cleared of breaching the ministers' code of conduct - because her husband did not tell her about a £344,000 gift (believe that if you will). Lawyer Mr Mills, 60, has denied taking the money as a bribe from Italy's Prime Minister Silvio Berlusconi. In a statement Mr Mills' solicitor, David Kirk, said Ms Jowell was angry (that anyone found out about it?) and embarrassed by the bribery allegations.)

The revised budget is nearly four times the £2.4bn estimate when London's bid succeeded less than two years ago. Construction is now budgeted at £5.3bn, there is a £2.7bn "contingency fund", and tax and security costs have risen (don't tell me they 'forgot' the dreaded VAT - pretty basic error for a Project Accountant?).

The Tories attacked her decision to "raid" an extra £675m of lottery funds - which means £1 in every £5 of good cause money now going to the Olympics. The budget outlined by Ms Jowell on Thursday largely covers construction costs of the Olympic Park and venues. The contingency fund will ensure the government cannot be "held to ransom" as it aims to hit deadlines, Ms Jowell said (so she's obviously not familiar with the first principles of Project Management). The government's contribution has risen to £6bn, she said, with £2.2bn coming from the National Lottery - including the additional £675m - and the rest from London's council tax payers.

London Mayor Ken Livingstone has pledged to contribute an extra £300m, she said - but the money would not be funded from London's council tax, nor higher transport fares (maybe extended road pricing?). The cost of staging the event itself - currently estimated at £2bn - will be met through selling television rights, (so SKY & Virgin will be at each others throats again?) corporate sponsorship and ticket sales.

The Department for Culture, Media and Sport later said the £2.4bn estimate from two years ago did not include costs for such items as regeneration and infrastructure - which the £9.3bn now does. Responding to criticism of the decision to use more Lottery money, Ms Jowell said that in the "overall scheme of things" its contribution was relatively small. She said the Lottery would benefit from profit sharing based on rises in land values in the Olympic park area. "London 2012 will bring huge financial gain to the whole country (but mainly the South east - well know for being a deprived area)... and it is only fair that the Lottery good causes should share in any such windfall," she told MPs. "I am determined to ensure that this temporary diversion from the existing good causes to the Olympic good cause is done with the least possible disruption" (i.e. "give me the money but don't give me any hassle"). Winning the Olympics had brought an extra £7bn of private sector investment to one of the most deprived areas in Europe (obviously not been to the slums of Portugal then - but she did say 'one of' I suppose?), Ms Jowell said. "The announcement today means it's full steam ahead (Steam - an outmoded means of propulsion - try diesel, or solar or windpower - what about wave power as the venues are quite near the coast?) for 2012," she added.

But for the Conservatives, the shadow Olympics minister Hugh Robertson said: "If you add together all the separate parts, the budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago. "In raiding the Lottery for a further £675m to make up the shortfall the government will penalise precisely the clubs and small organisations, up and down the country, that were supposed to benefit from the Olympics."

Scottish Nationalist Party MP Pete Wishart (see what I meant at the start, they all want to get in on the act. MP's who haven't spoken for years now see a waiting bandwaggon to jump on and improve their visibility (which I suppose is what I'm doing too)) accused the government of using the National Lottery as "their own personal piggy bank" and said Scottish causes would suffer, to pay for London's regeneration. But Big Lottery Fund chairman Sir Clive Booth told the BBC he thought it could have been worse. "When I go back to the beginning of February and the numbers we were looking at in terms of increasing costs and what that could have meant in terms of impact on us, this outcome is much, much better," he said. Tory MP Mark Field suggested that the original budget was "a lot more slack than it might otherwise have been", (Tory speak for "it was crap") because Ms Jowell had not expected London to win the bid. She, in turn, accused the Conservatives of trying to undermine the Olympics and said they would have preferred it if London's bid had failed (now now Tessa - that smacks of peevishness).

Liberal Democrat MP Don Foster said: "Properly managed, (that's a laugh, all the piggies are in-line and they all want to be the boss - I see another Dome coming on) the 2012 Games will bring huge and lasting benefits to all parts of the country (it's going to be really great for The Outer Hebrides!). "But sadly today's statement and the chaos that has surrounded the last 12 months and more, calls into question the government's ability to provide that proper management" (ever thought about using the private sector? There could be many trained and experienced (old) Project Managers out there who would love to be doing the job for no wages. I understand that some have even offered their services but have never heard anything from the organisers (case of - "don't want them" they might get it right or expose our incompetence.")

Of the £5.3bn budget for the Olympic Delivery Authority announced on Thursday, £3.1bn will be allocated to build the Olympic Park and venues and £1.7bn for regeneration and infrastructure. The ODA would also be given a £500m contingency allowance (again, incompetence is starting to show, most project management principles would say that a contingency of 10% is more the norm. Why is this so high? - but the rest of the overall £2.7bn contingency fund would be "locked away", Ms Jowell said. (Who has the key? What is the process for unlocking the vault? Is there a potential for another scaldal here?) . Another £600m had been allocated for "wider security" outside the site, and £390m for other costs including the Paralympics and community sports coaches.