RebelDog
24th February 2007, 04:18
From the BBC;
London Olympics could cost £9bn
By Mihir Bose
BBC sports editor
The cost estimates for London 2012 continue to rise
The cost of the 2012 London Olympics could rise to nearly four times the figure set out in the city's bid for the Games, the BBC has learned.
The Treasury and the Department for Culture, Media and Sport are discussing a price of £9bn - up from the £2.35bn set out in London's bid document.
The government believes construction alone could cost £3.3bn, with an extra £2bn allocated as a contingency fund.
Regeneration costs of £1.8bn and a £1bn VAT bill have also been added.
Security costs have also risen to at least £900m.
In the wake of heavy criticism of the government's handling of the games, Culture Secretary Tessa Jowell admitted to parliament in November that the cost of the Games would rise by £900m - 40% - to £3.3bn.
But critics have continued to express wide-ranging concerns about planning, over everything from transport to the burden on the tax payer and effect on the National Lottery's funding of good causes in order to meet costs.
Decontamination work
The Treasury's insistence on how the budget is drawn up is thought to have considerably added to the costs of the games.
It is understood it now insisting a 60% contingency should be to be added to the construction cost.
But this figure has been resisted both by the Mayor of London Ken Livingstone and also the DCMS.
Both of them would like a much lower contingency, a view that appears to have support from CLM, the Delivery Partners.
A variety of other factors are also at play.
These include rise in commodity prices, adjustments to transport figures to reflect 2012 prices and a revised estimate for inflation on construction costs.
The land in the east end of London chosen for the site also needs decontamination and major remedial work before it can be fit for the games.
The Treasury has also decided that the Olympic Development Authority will have to pay VAT.
While VAT is in effect paid to the Treasury, the cash initially still has to be found before it is reclaimed.
http://news.bbc.co.uk/1/hi/uk_politics/6391075.stm
In the UK the government have spent about £5bn on the conquest of Iraq, are about to spend £75bn replacing the murderous trident nuclear weapons system and now they want to lavish £9bn on the olympics. All this while workers are retiring to poverty. Thousands of OAP's die every year in the UK of the cold, think about it, the cold is a huge killer in the 5th richest country in the world, thats sick. We haven't the money to look after our retired people but when it comes to murder, imperialism and lavish sporting spectacles that benifit the working class to a tiny degree, there is a bottomless pit of money.
New Labour is trying to match the Roman empire for priorites.
London Olympics could cost £9bn
By Mihir Bose
BBC sports editor
The cost estimates for London 2012 continue to rise
The cost of the 2012 London Olympics could rise to nearly four times the figure set out in the city's bid for the Games, the BBC has learned.
The Treasury and the Department for Culture, Media and Sport are discussing a price of £9bn - up from the £2.35bn set out in London's bid document.
The government believes construction alone could cost £3.3bn, with an extra £2bn allocated as a contingency fund.
Regeneration costs of £1.8bn and a £1bn VAT bill have also been added.
Security costs have also risen to at least £900m.
In the wake of heavy criticism of the government's handling of the games, Culture Secretary Tessa Jowell admitted to parliament in November that the cost of the Games would rise by £900m - 40% - to £3.3bn.
But critics have continued to express wide-ranging concerns about planning, over everything from transport to the burden on the tax payer and effect on the National Lottery's funding of good causes in order to meet costs.
Decontamination work
The Treasury's insistence on how the budget is drawn up is thought to have considerably added to the costs of the games.
It is understood it now insisting a 60% contingency should be to be added to the construction cost.
But this figure has been resisted both by the Mayor of London Ken Livingstone and also the DCMS.
Both of them would like a much lower contingency, a view that appears to have support from CLM, the Delivery Partners.
A variety of other factors are also at play.
These include rise in commodity prices, adjustments to transport figures to reflect 2012 prices and a revised estimate for inflation on construction costs.
The land in the east end of London chosen for the site also needs decontamination and major remedial work before it can be fit for the games.
The Treasury has also decided that the Olympic Development Authority will have to pay VAT.
While VAT is in effect paid to the Treasury, the cash initially still has to be found before it is reclaimed.
http://news.bbc.co.uk/1/hi/uk_politics/6391075.stm
In the UK the government have spent about £5bn on the conquest of Iraq, are about to spend £75bn replacing the murderous trident nuclear weapons system and now they want to lavish £9bn on the olympics. All this while workers are retiring to poverty. Thousands of OAP's die every year in the UK of the cold, think about it, the cold is a huge killer in the 5th richest country in the world, thats sick. We haven't the money to look after our retired people but when it comes to murder, imperialism and lavish sporting spectacles that benifit the working class to a tiny degree, there is a bottomless pit of money.
New Labour is trying to match the Roman empire for priorites.