London Olympic Games and Paralympic Games (Amendment) Bill

Baroness Ford Excerpts

Tuesday 25th October 2011 Grand Committee

[Baroness Ford]

If the Minister will permit me, it may be more appropriate if I try to update the Committee on the current position with the Olympic stadium, on a factual basis, because it is something of a moving feast. I do not expect the Minister's office to be as up-to-date as I am because I seem to receive e-mails on my Blackberry every five minutes, which I endeavour to pass on.

The announcement that was made a fortnight ago to complete this competition was done entirely deliberately. I believe it was a good decision that the Government and the mayor made with us. Sadly, it was done in the teeth of continuing legal action and with references to the European Commission about the decision that was made last February to have West Ham United, Newham and UK Athletics as the preferred tenants of the Olympic park. As noble Lords will know, that was subject to extensive judicial review over the summer, in which the process was entirely vindicated by Mr Justice Davis.

The one outstanding issue was Newham’s financial participation in this deal, which was challenged on the basis that it somehow constituted state aid. The very clear advice that we had the whole way through was that it was not state aid. We expected that position to be completely vindicated at the hearing that was scheduled for 17 October. However, a week before that hearing, an anonymous complaint and reference was formally made to the Commission, which could have taken many months, and potentially years, to resolve. It is rather pathetic to have an anonymous complaint to the Commission. If someone feels aggrieved, they should have the backbone to say who they are and what their grievance is. Nevertheless, it was evident to us that that would have blighted the planning for the transformation of the Olympic stadium potentially for many years. None of us wanted to see the Olympic stadium in darkness in 2015-16. That would have been an absolute travesty.

Therefore, we decided to withdraw from the initial competition and to complete the transformation of the stadium using public money, which is not new money. It is money that was always in the ODA transformation budget for stadium works and it was always in the capital settlement that was granted to the OPLC in the comprehensive spending review for necessary stadium works in the event that the stadium was not sold to the private sector. So there is nothing new about this. The money is there, and the budget is there.

We will now move forward, potentially with Newham council, to undertake those works ourselves. That lets us put in a planning application in good time to ensure that the construction works start, so that we can reopen the stadium for the 2014-15 Diamond League season and potentially for the football and rugby season, should a tenant now come forward in the new competition, which is a lease that will go to the market. We will invite football and, possibly, rugby clubs and a range of people to come in as what my friends in UK Athletics call the winter tenant for the stadium. We are saying that the stadium will be completed, and we will get the planning application in place next year. In the next month or so, a lease will go to the market and we shall invite interested parties to come forward to take that lease. We fully expect this interesting saga to be resolved by the spring of next year.

It was quite clear that we could not be held ransom to anonymous complaints to Europe which would have taken a long time to resolve and which would have blighted the future of the stadium. I think the action that was taken was disappointing. I would love to have been able to sign the original deal, but we have to restructure the deal in a very sensible way. There is no additional call on public money, if that was the point being made by my noble friend Lord Stevenson. The budget has always been there to do that. I hope that helps.

[Baroness Grey-Thompson]

My Lords, I believe that it is really important to keep track of the positive impact of the Games. Looking at these amendments, I agree with the noble Lord, Lord Addington, about subsection (c) and the Olympic park legacy which maybe fits into another area. I am really delighted that finally the world of sport is starting to recognise that legacy is a responsibility of everyone in sport—except LOCOG—and from my experience the talk of legacy is something quite new. One of the challenges we have is that it means something different to everyone. Following on from the noble Baroness, Lady Ford, I strongly support the decision for the athletics stadium. I declare an interest as a board member of UK Athletics. This is a very personal view: I believe that it is a very good decision for the sport of athletics.