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| Version 1 | Version 2 |
|---|---|
| Warning over 2012 Olympic budget | Warning over 2012 Olympic budget |
| (about 9 hours later) | |
| Organisers of the London Olympics have been warned they still face "formidable challenges" which could see costs rise. | Organisers of the London Olympics have been warned they still face "formidable challenges" which could see costs rise. |
| Unsigned construction contracts, the legacy of the games and security could all affect the £9.3bn budget, the National Audit Office (NAO) said. | |
| The Olympic Delivery Authority (ODA) was urged to maintain a "firm stance" on costs as plans developed. | The Olympic Delivery Authority (ODA) was urged to maintain a "firm stance" on costs as plans developed. |
| The Department for Culture, Media and Sport said the budget had not increased "and will not be allowed to increase". | |
| Similarly an ODA spokesman said any further public investment would be "within the existing £9.3bn budget". | |
| The NAO's warning came as similar concerns were highlighted in a review of preparations for the games, commissioned by mayor Boris Johnson. | |
| In the latest report the head of the NAO, Tim Burr, noted: "The preparations for the games are well under way." | In the latest report the head of the NAO, Tim Burr, noted: "The preparations for the games are well under way." |
| READ THE REPORT IN FULL Preparations for London 2012 Olympics and Paralympic Games [815KB] Most computers will open these documents automatically, but you may need Adobe Reader Download the reader here | READ THE REPORT IN FULL Preparations for London 2012 Olympics and Paralympic Games [815KB] Most computers will open these documents automatically, but you may need Adobe Reader Download the reader here |
| But he said: "Important challenges remain which will become more formidable as the spotlight turns to London after the Beijing Games." | But he said: "Important challenges remain which will become more formidable as the spotlight turns to London after the Beijing Games." |
| It highlighted the lack of a deal for construction of the Olympic village in east London, which is expected to cost more than £1bn. | It highlighted the lack of a deal for construction of the Olympic village in east London, which is expected to cost more than £1bn. |
| Also noted was that plans for individual venues, including the main stadium, after 2012, were yet to be finalised. | Also noted was that plans for individual venues, including the main stadium, after 2012, were yet to be finalised. |
| The NAO said there was no "firm basis" for security arrangements and costed plans from the government were not anticipated until the end of the year. | The NAO said there was no "firm basis" for security arrangements and costed plans from the government were not anticipated until the end of the year. |
| All these factors, the report said, "may add cost, or compromise the preparations for a successful games". | All these factors, the report said, "may add cost, or compromise the preparations for a successful games". |
| The report warned: "There will be a risk of cost overruns and loss of time unless a firm line is adopted on subsequent calls for changes in the designs for the venues and infrastructure." | The report warned: "There will be a risk of cost overruns and loss of time unless a firm line is adopted on subsequent calls for changes in the designs for the venues and infrastructure." |
| It is incorrect to say that taxpayers would pay more Olympic Delivery Authority | |
| An ODA spokesman said the level of public investment in the Olympic village would be finalised later this year. | |
| "It is possible, given the economic situation, that more public investment may be needed," he added. | |
| "However, this would be within the existing £9.3bn budget for the games so it is incorrect to say that taxpayers would pay more." | |
| A spokesman for the Department for Culture, Media and Sport said it was "inevitable" in "a project of this complexity" that estimated costs would both rise and fall. | |
| "Some, for infrastructure, are currently lower than expected, but we are working to reduce any that may be rising at this time," he added. "Individual venue budgets remain unaltered." |