As befitting the arrogant incompetence of those who are mismanaging the London 2012 Olympics, Tessa Jowell (whose husband is facing criminal trial in Italy) broke the news to parliament yesterday that the Olympics costs were overrunning and that the taxpayer would be making up the shortfall.
Tessa Jowell, Secretary for Culture Media and Sport, finally had to come clean to the world that the costs were out of control.
Jowell, like all politicians, does not like being caught out; therefore it was a pleasure for many to see her squirm (one must take one's pleasure when one can).
However, this is small compensation for the fact that the British taxpayer (or rather more accurately the London taxpayer) will have to foot the bill for this unwanted white elephant.
Jowell said that she could not rule out funding the shortfall with a further raid on the National Lottery, or by increasing the contribution made by London's council-tax payers.
The original budget of £2.375bn has now been derided as a "fag packet" calculation, and Jowell conceded that the current figure is more like £3.3bn.
This figure is of course nonsense, as the real costs are likely to exceed £8BN.
Why do the organisers keep trying to hide the truth from people?
Answer: because they are incompetent and venal.
Jack Lemley knew the score when he resigned, he saw very clearly that the costs of clearing the toxic waste from the site selected to hold the Olympics would be astronomical.
Why did the organisers choose a toxic dump to hold the Olympics on?
Did they tell the IOC this when they made the bid?
Anyone care to spill the beans on that?
Jowell did her best to blame everyone and everything else for this shambles; rising costs on construction inflation, the doubling of steel prices and a revised figure for public transport links serving the Games site near Stratford. Rather oddly the the original bid figure did not include the £400M cost of hiring the international project management consortium CLM.
Jowell warned that there were further "potential liabilities"; the costs of Olympic security £1BN, the extent of a contingency fund within the budget and a VAT bill of £250M
None of these were in the original budget.
The fact remains a budget is meant to take into account all of the costs.
The organisers have failed, and should be removed from their positions of responsibility.
Whether that happens or not, it is clear that the taxpayers will be screwed as a result of this shambles.
Wednesday, November 22, 2006
Monday, November 20, 2006
The Olympic Shambles
True to form, the 2012 London Olympics are now budgetarily out of control. The costs of holding this event are now expected to exceed £8BN, the original budget was for £2.4BN (it was then upgraded only last week to £5BN).
I warned of the dangers of spiraling costs last week, but never expected them to rise by over 50% again in less than a week.
To add to the shambles it is reported that Jack Lemley, the ex CEO of the Olympic Delivery Authority, resigned because of his worries over the budget. Specifically he feared that the cost of decontaminating the land, on which the Olympics will be held, will run out of control; he aslo feared that deadlines to decontaminate the land will be missed.
Mr Lemley also has sharply rebuked Mayor Ken Livingstone for alleging that Lemley resigned owing to health reasons, and a "major heart operation".
Mr Lemley stated that the operation was not major, and that he is extremely fit.
The one thing that we can all be sure of is that the costs of the fiasco will keep rising, and that the politicians such as Livingstone and Jowell (Culture Secretary) will do their best to avoid the blame.
Never allow politicians to take charge of major projects.
I warned of the dangers of spiraling costs last week, but never expected them to rise by over 50% again in less than a week.
To add to the shambles it is reported that Jack Lemley, the ex CEO of the Olympic Delivery Authority, resigned because of his worries over the budget. Specifically he feared that the cost of decontaminating the land, on which the Olympics will be held, will run out of control; he aslo feared that deadlines to decontaminate the land will be missed.
Mr Lemley also has sharply rebuked Mayor Ken Livingstone for alleging that Lemley resigned owing to health reasons, and a "major heart operation".
Mr Lemley stated that the operation was not major, and that he is extremely fit.
The one thing that we can all be sure of is that the costs of the fiasco will keep rising, and that the politicians such as Livingstone and Jowell (Culture Secretary) will do their best to avoid the blame.
Never allow politicians to take charge of major projects.
Thursday, November 16, 2006
London Olympics Bill Soars
As predicted on this site, the bill for the London 2012 Olympics is already way out of control.
The bill is now expect to be above £5BN, the original budget of £3.4BN has been thrown away.
Many excuses have been given for this appalling lack of cost control, and poor budgeting; extra security costs, an unforeseen VAT bill and private Treasury predictions of enormous cost overruns.
However, the overriding reason is clear; never, ever trust politicians to prepare accurate budgets or control costs. They are incapable, especially when the costs and budgets relate to an ego boosting extravaganza such as the Olympics.
Ken Livingstone, Mayor of London, claims that council taxpayers in London should not have to contribute more than the £625M already pledged. He would say that, and it should be remembered that he promised faithfully not to increase the congestion charge; a promise he promptly reneged on, once he was re-elected to office.
The lesson?
Don't trust politicians.
A new Olympics cost estimate is being worked out between Olympic project managers, the Treasury and the Department of Culture, Media and Sport. Needless to say this will be reviewed in the fullness of time as well.
The Chancellor's officials are so scared about the prospect of further budgetary disaster, that they are insisting on a contingency fund of 60% of the estimated £1BN building costs.
Hugh Robertson, the Tory spokesman, said:
"This is a story of monumental incompetence."
Jack Lemley, the American engineer who quit as chairman of the Olympic Delivery Authority (ODA), raised the alarm the other week when he cited political interference and cost overruns as the reason for his unexpected departure.
As expected, this will be a shambles.
Sensible countries should do all they can to avoid hosting the Olympics, they are nothing but trouble and a waste time and money.
The bill is now expect to be above £5BN, the original budget of £3.4BN has been thrown away.
Many excuses have been given for this appalling lack of cost control, and poor budgeting; extra security costs, an unforeseen VAT bill and private Treasury predictions of enormous cost overruns.
However, the overriding reason is clear; never, ever trust politicians to prepare accurate budgets or control costs. They are incapable, especially when the costs and budgets relate to an ego boosting extravaganza such as the Olympics.
Ken Livingstone, Mayor of London, claims that council taxpayers in London should not have to contribute more than the £625M already pledged. He would say that, and it should be remembered that he promised faithfully not to increase the congestion charge; a promise he promptly reneged on, once he was re-elected to office.
The lesson?
Don't trust politicians.
A new Olympics cost estimate is being worked out between Olympic project managers, the Treasury and the Department of Culture, Media and Sport. Needless to say this will be reviewed in the fullness of time as well.
The Chancellor's officials are so scared about the prospect of further budgetary disaster, that they are insisting on a contingency fund of 60% of the estimated £1BN building costs.
Hugh Robertson, the Tory spokesman, said:
"This is a story of monumental incompetence."
Jack Lemley, the American engineer who quit as chairman of the Olympic Delivery Authority (ODA), raised the alarm the other week when he cited political interference and cost overruns as the reason for his unexpected departure.
As expected, this will be a shambles.
Sensible countries should do all they can to avoid hosting the Olympics, they are nothing but trouble and a waste time and money.
Wednesday, November 15, 2006
London Struggles
London politicians will meet today, in special session, to debate the financial health of the London 2012 Olympics games.
The special meeting has been arranged as a result of claims from the former chairman of the Olympic Delivery Authority, Jack Lemley, that London will struggle to come in on time and on budget.
Mr Lemley resigned from his Olympics post recently, due to his fears that the Olympics would fail.
The special meeting has been arranged as a result of claims from the former chairman of the Olympic Delivery Authority, Jack Lemley, that London will struggle to come in on time and on budget.
Mr Lemley resigned from his Olympics post recently, due to his fears that the Olympics would fail.
Monday, November 13, 2006
Olympics Bill Soars
The costs of the 2012 Olympics in London are already rising well beyond those originally budgeted for, not helped by the fact that the VAT element had been conveniently "forgotten" by those who put together the original budget.
It is now feared that these rising costs could have a damaging impact on the national lottery's ability to fund good causes.
John Whittingdale, a Tory MP who chairs the culture, media and sport select committee, said:
"The lack of clarity over the Olympic budget is of considerable concern. It is all very murky - the status of the regeneration budget is unclear and the question of VAT on construction work has not been clarified.
The impact on traditional lottery good causes could be horrendous. It is ringing all kinds of alarm bells at every lottery distributor."
Negotiations are taking place between the Treasury and the Department for Culture, Media and Sport to provide new funds for the games.
The long suffering tax payers of London are expected to foot some of the bill, even though they weren't consulted in the first place as to whether they wanted the Olympics.
Additional funding will also come from the national lottery. On the existing budget the lottery has to raise £1.5BN.
Mr Whittingdale said:
"The Olympic lottery games have already top-sliced a lot of money from the main game to the Olympics; if it is top-sliced even more, it will mean further hits to the distribution bodies."
A culture department spokesman said:
"It has always been the case that the lottery would be a major part of the funding package. The Olympics present a fantastic opportunity to get people taking up sport, and [for] regenerating an area."
As ever it will be the tax payer who has to fund the ambitions of politicians.
It is now feared that these rising costs could have a damaging impact on the national lottery's ability to fund good causes.
John Whittingdale, a Tory MP who chairs the culture, media and sport select committee, said:
"The lack of clarity over the Olympic budget is of considerable concern. It is all very murky - the status of the regeneration budget is unclear and the question of VAT on construction work has not been clarified.
The impact on traditional lottery good causes could be horrendous. It is ringing all kinds of alarm bells at every lottery distributor."
Negotiations are taking place between the Treasury and the Department for Culture, Media and Sport to provide new funds for the games.
The long suffering tax payers of London are expected to foot some of the bill, even though they weren't consulted in the first place as to whether they wanted the Olympics.
Additional funding will also come from the national lottery. On the existing budget the lottery has to raise £1.5BN.
Mr Whittingdale said:
"The Olympic lottery games have already top-sliced a lot of money from the main game to the Olympics; if it is top-sliced even more, it will mean further hits to the distribution bodies."
A culture department spokesman said:
"It has always been the case that the lottery would be a major part of the funding package. The Olympics present a fantastic opportunity to get people taking up sport, and [for] regenerating an area."
As ever it will be the tax payer who has to fund the ambitions of politicians.
Tuesday, November 7, 2006
The Olympian Tax Bill
As ever with Olympic projects, never ever trust the original budget submitted by those keen to win public support for hosting the Games.
The 2012 London Olympics are no such exception, as it turns out that some £250M in VAT payments were "forgotten" in the original budget submission.
Tessa Jowell, the culture secretary whose separated husband faces trial in Italy for fraud, came clean to the Commons and said that London's initial budget did not include the 17.5% cost of VAT on the construction of the venues and infrastructure.
The Treasury, never knowingly shortchanged on tax revenue, needless to say offers no hope of reprieve from this humiliation for the Olympic planners; it claims that its hands are tied by European law, and that the Olympic Delivery Authority (ODA) will have to pay the additional tax bill.
However, Hugh Robertson the shadow sports spokesman said that he had been given a personal "cast iron assurance" about six months ago by Ms Jowell in a corridor of the House of Commons that VAT would be waived on building the Olympic facilities.
Never ever trust Olympic budgets!
Ms Jowell claims that London's bid documents did not include VAT on the construction of venues for 2012, because the ODA had not been established and its legal status could not be anticipated.
Ever heard of contingency budgets Tessa?
In true weasel style, so typical of a politician, she then attempted to avoid responsibility by claiming that London's plans had been endorsed by a cross-government group and issues in relation to VAT were not identified as an issue at that point by the Treasury or by departmental accounting officers.
Mr Robertson said:
"The government is the author of its own problems by not being clear and transparent about the costs of the Olympics. The DCMS thought it had an agreement with the Treasury, but Gordon Brown played hardball and it unravelled. I am sure a solution will be found, but only after causing damage to the Olympic games. It is not doing the Olympic process any good."
Don't trust Olympic budgets, or the politicians who put them together.
The 2012 London Olympics are no such exception, as it turns out that some £250M in VAT payments were "forgotten" in the original budget submission.
Tessa Jowell, the culture secretary whose separated husband faces trial in Italy for fraud, came clean to the Commons and said that London's initial budget did not include the 17.5% cost of VAT on the construction of the venues and infrastructure.
The Treasury, never knowingly shortchanged on tax revenue, needless to say offers no hope of reprieve from this humiliation for the Olympic planners; it claims that its hands are tied by European law, and that the Olympic Delivery Authority (ODA) will have to pay the additional tax bill.
However, Hugh Robertson the shadow sports spokesman said that he had been given a personal "cast iron assurance" about six months ago by Ms Jowell in a corridor of the House of Commons that VAT would be waived on building the Olympic facilities.
Never ever trust Olympic budgets!
Ms Jowell claims that London's bid documents did not include VAT on the construction of venues for 2012, because the ODA had not been established and its legal status could not be anticipated.
Ever heard of contingency budgets Tessa?
In true weasel style, so typical of a politician, she then attempted to avoid responsibility by claiming that London's plans had been endorsed by a cross-government group and issues in relation to VAT were not identified as an issue at that point by the Treasury or by departmental accounting officers.
Mr Robertson said:
"The government is the author of its own problems by not being clear and transparent about the costs of the Olympics. The DCMS thought it had an agreement with the Treasury, but Gordon Brown played hardball and it unravelled. I am sure a solution will be found, but only after causing damage to the Olympic games. It is not doing the Olympic process any good."
Don't trust Olympic budgets, or the politicians who put them together.
Monday, October 30, 2006
More Doping Tests
The IOC are increasing their precautions against doping in the forthcoming 2008 Beijing Olympics. Athletes will face more testing for performance enhancing drugs at the 2008 Beijing Olympics, with a 25% increase in the number of tests to be conducted.
The IOC said that the number of tests would be raised to 4,500 in 2008, 25% more than in 2004 Athens Games, "as part of its zero-tolerance approach to fighting doping."
The IOC said that the number of tests would be raised to 4,500 in 2008, 25% more than in 2004 Athens Games, "as part of its zero-tolerance approach to fighting doping."
Thursday, October 26, 2006
Cars and Trucks To Be Banned
Kevan Gosper, Vice-Chairman of the Coordination Commission for the Beijing Olympics, has claimed that Beijing is prepared to stop private cars and trucks from driving and to shut down industry, if that's what is needed to cut pollution during the 2008 Beijing Games.
The joys of a one party state!
When pressed in the interview, on political issues such as Falun Gong, he adopted the ostrich position of head in the sand. As noted the Olympics is about money, not sport.
To read the interview visit ABC.
The joys of a one party state!
When pressed in the interview, on political issues such as Falun Gong, he adopted the ostrich position of head in the sand. As noted the Olympics is about money, not sport.
To read the interview visit ABC.
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