Oral Answers to Questions

Valerie Vaz Excerpts

Thursday 9th February 2012 Commons Chamber

[John Penrose]

I agree with the right hon. Lady that it is vital that we have properly accessible attractions and accommodation. Indeed, a great deal of work has been done to make sure that the important legal obligations, as well as commercial opportunities, in respect of making accommodation available to people with disabilities are well understood and the opportunity is grasped. However, it has always been the case that prices alter during the season, as is entirely natural. What has happened in London is that the LOCOG block booking—she will be aware of it, as it was part of the original Olympics deal—meant there was a restriction in supply. That has now been eased as a result of the additional rooms that LOCOG has just released.

[Valerie Vaz (Walsall South) (Lab)]

8. What progress his Department has made on his plans to merge Sport England and UK Sport; and if he will make a statement.

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

The project board set up at the request of UK Sport and Sport England, which is chaired by Sir Keith Mills, has identified four key benefits: shared resources to reduce costs, co-location, increased commercial income and enhanced strategic co-ordination. We will discuss the future governance arrangements after the 2012 games.

[Valerie Vaz]

I thank the Minister for his response. These two organisations have different articles of association and different objectives. It is almost like one of them services a Lotus and the other encourages Ford Fiestas to become Lotuses. Other than sharing back-office functions, can he say what the cost savings are?

[Hugh Robertson]

Yes. The cost savings are considerable. The bodies both have entirely separate back-office operations, and they both live in central London offices for which they signed leases at the height of the market without any break clauses at £57 a square foot and £35 a square foot, I think. There is no co-ordination of commercial strategy to drive success at the elite end alongside the mass market and their strategies operate in completely different spheres. There are many different savings and a lot of possible synergies.