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Watchdog warning over Games costs | Watchdog warning over Games costs |
(about 2 hours later) | |
"Significant uncertainties" over the London 2012 Olympics could drive the cost of the Games higher, the government's spending watchdog warns. | |
The National Audit Office (NAO) said the £9.3bn budget announced in March was "sufficient to cover the estimated costs of the Games" as plans stood. | The National Audit Office (NAO) said the £9.3bn budget announced in March was "sufficient to cover the estimated costs of the Games" as plans stood. |
But the NAO report warned it was true only if "the assumptions on which the budget is based hold good". | But the NAO report warned it was true only if "the assumptions on which the budget is based hold good". |
It identified a number of areas where uncertainties remained over cost. | It identified a number of areas where uncertainties remained over cost. |
Caution urged | Caution urged |
Venue design, construction price inflation and private-sector funding of the Olympic Park were named as areas where prices could rise. | Venue design, construction price inflation and private-sector funding of the Olympic Park were named as areas where prices could rise. |
Auditor General Sir John Bourn, who delivered the report into the escalating bill for the Olympics, said the process of setting the budget had been "thorough". | Auditor General Sir John Bourn, who delivered the report into the escalating bill for the Olympics, said the process of setting the budget had been "thorough". |
The Olympic Games is now on a firmer financial footing thanks to the budget announced in March 2007 Sir John Bourn, Auditor General | The Olympic Games is now on a firmer financial footing thanks to the budget announced in March 2007 Sir John Bourn, Auditor General |
However he did note that the level of public funding had "increased greatly" from the original estimate £3.4bn when London won the bid in 2005. | However he did note that the level of public funding had "increased greatly" from the original estimate £3.4bn when London won the bid in 2005. |
The Department of Culture, Media and Sport was urged to keep a rein on spending so that as little as possible of the £2.7bn allowance for contingencies was used. | The Department of Culture, Media and Sport was urged to keep a rein on spending so that as little as possible of the £2.7bn allowance for contingencies was used. |
Sir John said: "The Olympic Games is now on a firmer financial footing thanks to the budget announced in March 2007. | Sir John said: "The Olympic Games is now on a firmer financial footing thanks to the budget announced in March 2007. |
"This should help all those involved in delivering the Games to move forward with greater confidence. However a budget is just that - a budget, not a target." | "This should help all those involved in delivering the Games to move forward with greater confidence. However a budget is just that - a budget, not a target." |
Iron grip | Iron grip |
He said the government needed to carry out "clear and quick decision-making on funding, effective commercial arrangements with suppliers, and finalisation of designs and legacy plans". | He said the government needed to carry out "clear and quick decision-making on funding, effective commercial arrangements with suppliers, and finalisation of designs and legacy plans". |
Welcoming the report, Olympics Minister Tessa Jowell said: "We are determined to keep an iron grip on costs. | Welcoming the report, Olympics Minister Tessa Jowell said: "We are determined to keep an iron grip on costs. |
"With a robust funding package in place and world-class team at the Olympic Delivery Authority, we are now in an excellent position as we move into the next phase of the project," she said. | "With a robust funding package in place and world-class team at the Olympic Delivery Authority, we are now in an excellent position as we move into the next phase of the project," she said. |
Conservative Olympics spokesman Hugh Robertson said: "It is... difficult to understand how a minister in one department with her civil servants and budget-holder in another can provide the clear lines of accountability necessary to keep this complex project within budget." | Conservative Olympics spokesman Hugh Robertson said: "It is... difficult to understand how a minister in one department with her civil servants and budget-holder in another can provide the clear lines of accountability necessary to keep this complex project within budget." |
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