Olympics and Paralympics (Funding)

Lyn Brown Excerpts

Monday 27th February 2012 Commons Chamber

[Mr Whittingdale]

Yes, I basically do agree with my hon. Friend, but the financing of the Olympics seemed to me a legitimate use of lottery funding, because it is a sporting event and that was one of the four good causes that the lottery was originally established to fund.

[Lyn Brown (West Ham) (Lab)]

Does the hon. Gentleman accept that the area of east London that the money in question is helping to regenerate was in desperate need, and that if we had not had the Olympics, the regeneration of that area may have taken decades more? Does he agree that the economic development of an area that was quite blighted is a wider and possibly more important issue than reimbursing the lottery?

[Mr Whittingdale]

I completely accept the hon. Lady’s point. Indeed, that was one of the principal motivations for making the bid in the first place, and the Olympics will plainly have a dramatic effect on the area. A number of members of the Culture, Media and Sport Committee visited the Olympic park in January, and it is absolutely extraordinary. The sporting facilities are world class, and I hope that they will have a lasting benefit and bring up the whole area in the way that she describes.

--- Later in debate ---

[Mr Whittingdale]

I may come to regret giving that guarantee.

I understand that this issue is a cause for concern, but LOCOG has done as much as it can to ensure that everybody who really wants to attend the games will have the opportunity to do so.

I do not want to spend a great deal more time speaking. I shall merely note the two big challenges, which have already been raised. The first is security, which we have talked about at some length. Obviously the climate has changed since the original budget was set, but the issue will always be a matter of some concern, and I am sure that the Minister will want to say something about it. The second challenge is transport, which I know has occupied the attention of the Government; indeed, it has also caused some concern to the Committee. Even if we achieve the target of reducing journeys on the part of commuters and businesses by 20% on the busiest days—asking people to change their habits to that extent is quite a demanding target—that will still, we are told, lead to half-hour delays in getting on tube trains at certain stations. That is a measure of the difficulty that the issue has caused. Indeed, if there is one issue that is causing the most anxiety to those responsible for preparing for the games, it is transport, so I am sure that the Minister will want to say a bit more about it.

[Lyn Brown]

rose—

[Mr Whittingdale]

I will give way for the last time.

[Lyn Brown]

I should say that I am off to a European Committee shortly, so I am grateful to the hon. Gentleman for the opportunity to get in quickly on the issue of transport. One of the biggest issues—which we are yet to resolve—for the community living around the stadium is which roads will be open and what special arrangements will be made for that community. Resolution of this issue is now desperately needed, and I hope that this afternoon’s debate might shed some light on that.

[Mr Whittingdale]

I am sure that the Minister has heard the hon. Lady’s point and will attempt to shed some light on it, if possible.

--- Later in debate ---

[The Minister for Sport and the Olympics (Hugh Robertson)]

Today, there are 151 days to go and the good news for the whole House is that the construction is now 96% complete and we are on track to deliver within the much-discussed £9.3 billion funding package. Of the original £9.3 billion, more than £500 million remains as uncommitted contingency, with the ODA holding just over £100 million and the Government about £400 million. The details will be released to the public, as they always are, tomorrow morning.

I thought the best way to wind up the debate would be to go through the various contributions made, the first of which was from the Chairman of the Culture, Media and Sport Committee, my hon. Friend the Member for Maldon (Mr Whittingdale). As we have come to expect from him, he made a typically sensible, informed and balanced speech and, I am delighted to say, he acted as a lightning conductor for all the early questions, thereby saving me some trouble.

My hon. Friend was right to point out that when the budget was moved from the bid budget to the delivery budget, it contained considerable contingency funding. It is a fair point that, as a result, we have been able to absorb the lack of private sector investment in both the village and the international broadcast centre/main press centre.

My hon. Friend rightly praised the ODA. I believe that the ODA has recalibrated Britain’s reputation abroad, as we saw clearly during the world athletics championship bid at the end of last year. Put simply, we are now trusted to deliver what we promise. That is the real achievement of the ODA. He rightly pointed out that the LOCOG operating budget is finely balanced. Set against that, it has done extraordinarily well both in ticketing revenue—for all that that has given rise to one or two other issues—and in gaining private sponsorship.

My hon. Friend rightly drew attention to the repayment of the national lottery, in fulfilment of an undertaking given by the right hon. Member for Dulwich and West Norwood (Tessa Jowell) at the time the new budget was set in March 2007. It will be reimbursed by land receipts. It is also worth pointing out that the national lottery is doing much better now than it was in 2005, and the amount of money that sport receives from it is due to increase from £1.3 billion in 2010 to £1.8 billion by 2016-17. In part, that is because of the change in the shares and the Olympic levy dropping out, but it is also because lottery ticket sales are rising. I believe that when people see lottery cash being spent on projects to which they can relate, they buy more tickets. The Olympic project has a part to play in all that.

I am sorry that the hon. Member for Perth and North Perthshire (Pete Wishart) is no longer here. He attacked the Scottish position, but as many in his party do, he forgot that the increase in lottery shares and in cash going to sport, the arts and heritage benefits organisations in Scotland just as it does organisations south of the border. Sport in Scotland will benefit precisely when he wants it to—around the time of the Commonwealth games.

I cannot say much about the legacy of the stadium, because we are in a contractual moment. There were 16 expressions of interest in the stadium, which is rather more than we expected, and the process is continuing. We will know at the end of March how that has gone.

My hon. Friend the Member for Maldon said that two challenges remain. In a sense, for Government there are three main challenges relating to the Olympics: security and transport, which he mentioned, and legacy, which everyone who has spoken in the debate referred to. If we get those things right, everybody will concentrate on the sport and forget about us, which is probably the ideal situation.

[Lyn Brown]

The Minister will know that I wrote to him earlier this month about local transport issues in the area and the need to let local people and local businesses, particularly my small and medium-sized businesses, know about our plans. Will he address that matter with some urgency?

[Hugh Robertson]

Yes, I will do so. That is the simplest answer to the hon. Lady’s question.