There is a black hole in Olympic budget - Doocey

2.05.00pm GMT Tue 15th Jan 2008

Commenting on the funding 'black hole' in the sale of Olympic land, Olympics Spokesperson on the London Assembly Liberal Democrats Dee Doocey said:

"How can the Mayor and the Department of Culture, Media and Sport deny that there is a shortfall in Olympic funding when the sums simply do not add up?

"A minimum of £2.1 billion needs to be generated from the Olympic land sales in order to cover costs that the Mayor has committed to. But I have grave doubts that profits from the sale of Stratford land will cover this. Land prices would need to rise by 16% per annum to cover these costs. To place so much faith in a volatile housing market is ridiculous. There is a black hole in the Olympic budget and the fact that the Mayor has committed money that does not exist is cavalier and irresponsible.

"By dismissing the deficit as 'pessimistic' the Mayor is burying his head in the sand. Londoners must not be made to pay the price for the Mayor's incompetence."

Notes to the Editors:

1. Dee Doocey is Chair of the Economic Development, Culture, Sport and Tourism Committee, the committee responsible for overseeing the 2012 Olympics.

2. In the Memorandum of Understanding 2007 the Government and the Mayor explained what would happen to the profits from the sale of Olympic land after the Games. The profit will pay back £675 million to the Lottery and £1.15 billion to the London Development Agency. The amounts specified in the agreement from the sale of land totalled £1.825 billion. In addition, the Mayor has indicated that the profit from the sale of Olympic land would fund the extra £300 million from London (the LDA), and also the £10 million per year to run the Olympic Park after the 2012 Games. Therefore, £2.1 billion must be generated from the land in order to cover the Mayor's commitments.