Olympics and Paralympics (Funding)

Debate between Lord Foster of Bath and John Whittingdale

Monday 27th February 2012 Commons Chamber

[Mr Whittingdale]

My hon. Friend makes a good point in indicating the benefits to his area. One of the challenges, which we have spent some time considering, is how the benefits of our hosting the games can be felt outside London, as the whole country should gain from it. His example of what is happening in Medway is a good illustration of that.

[Mr Don Foster (Bath) (LD)]

Returning to the point raised by my hon. Friend the Member for Colchester (Sir Bob Russell), does the Chairman of the Select Committee agree that spending roughly £80 million on a total of four major events—two opening and two closing ceremonies—will be seen by 4 billion people around the world as good value for money? Is he aware that Martin Sorrell has said that were we to pay for that sort of advertising, it would cost £5 billion?

[Mr Whittingdale]

I am grateful to the right hon. Gentleman. As I said, although perhaps not as eloquently as he did, that is my view as well. This is a unique opportunity. The alternative—that we put on a poor show that was watched around the entire world—would be so damaging that it is right that we invest in it and make sure that we get it right. I am confident that, under the leadership of Danny Boyle, that is exactly what we will achieve. As I said, the budget for the staging of the games will be tight, but I hope that it can be achieved without cost to the taxpayer. Our initial hopes proved to be rather less accurate as regards the cost of building the facilities. The original candidature file put the cost of preparing for the games at £3.4 billion, of which £2.375 billion was to be spent by the Olympic Delivery Authority. In March 2007, the right hon. Member for Dulwich and West Norwood came to the House and said that the public sector funding package would actually be £9.325 billion.

--- Later in debate ---

[Mr Foster]

rose—

[Mr Whittingdale]

I will give way to my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti) and then to my right hon. Friend the Member for Bath, but I probably should make progress at some point.

[Mr Whittingdale]

My hon. Friend is absolutely right in his aspiration, although he identifies probably the hardest challenge for the Olympics to achieve.

[Mr Foster]

I apologise to the Chairman of the Committee for intervening a second time. Will he ensure that we have very clearly on the record the situation regarding the take from the lottery and good causes? He will recall that the previous Government initially wanted to take around £1.5 billion from the national lottery. There was a lot of concern about that, but they later requested a further £675 million. Many people were concerned about that further request, and it was agreed that that the additional £675 million would be returned. Will he therefore remind the hon. Member for Cities of London and Westminster (Mark Field) that £1.5 billion of lottery money has gone in to help him and will not be repaid?

[Mr Whittingdale]

My right hon. Friend is entirely right and I am grateful to him for spelling out the detail. That is exactly why the £675 million was identified.

It has rightly been said that legacy is the most important issue facing us. In the course of the Committee’s monitoring of preparations, we have visited a number of previous Olympic cities. In the past seven years, we have been to Athens, Barcelona, Seoul, Munich and Beijing, and have talked to the organisers of the Sydney and Los Angeles games. It is fair to say that none has achieved a successful, lasting legacy. Some cities have achieved some aspects, but the challenge for London was always to succeed where other cities had not.

The first challenge, which is obviously of interest to the hon. Member for West Ham (Lyn Brown), is on the facilities in east London. The Secretary of State told the House recently that six of the eight facilities now have identified tenants and uses, which leaves two. They are the two that have proved the most difficult—the stadium and the media centre. I suspect that we cannot yet say any more about how those two facilities should be used, but obviously the stadium is an extraordinarily expensive facility, and it is important that it is not just used for the Olympics and Paralympics and that we find future uses for it. All the members of the Committee who went to Athens and saw the grass growing out of the tarmac in the Olympic stadium came back determined to avoid such a thing here. I hope that the Minister will talk about that.

The other issue, which my hon. Friend the Member for Gillingham and Rainham rightly raised, is the harder task of creating a sporting legacy. Seb Coe, when he originally made the pitch, concentrated on the need to use the Olympics to inspire young people across the country to want to take up sport. The Government have not sustained the 1 million target, but nevertheless I welcome the Places People Play programme and the extra funding given to it. We are most anxious that when young people, watching inspirational sportsmen winning medals in whatever discipline on the television, think, “I’d like to take up that sport”, they should find it easy to do so. It is terribly important that we support local sports clubs, schools and sporting facilities right across the country, so that those facilities are there and we can get that immediate benefit from the inspiration that the games will undoubtedly bring to people.

I will quickly touch on three areas that my hon. Friends the Members for Gainsborough (Mr Leigh) and for Cities of London and Westminster (Mark Field), in particular, have mentioned. As I suggested to my hon. Friend the Member for Gainsborough, ticketing was always going to be difficult. LOCOG could either have pitched ticket prices at such a level that anyone who wanted one would have been likely to get one, in which case it would have been criticised for setting prices too high, or it could have done what it did, which was to set prices at such a level that they were within the reach of most people, but as was entirely predictable, I suppose, demand massively outstripped supply.