Select Committee on Culture, Media and Sport Minutes of Evidence

Supplementary memorandum submitted by Manchester City Council and Manchester 2002 Ltd


  Organisers of the Manchester 2002 Commonwealth Games continue to make excellent progress in the planning and preparations for the largest multi-sport event ever to take place in this country.

  Recent positive developments have given organisers a genuine boost:

    —  We have recruited most of the key staff who will help to deliver the Games, all of whom have the experience, expertise and commitment to make the Games successful;

    —  The new facilities which will be used during the Games are either complete or on schedule for completion by Games time;

    —  Further sponsorship deals will be announced shortly covering important categories;

    —  We look forward to a very productive relationship with Australia's major sports channel following the recent sale of the Australian TV rights to Channel 7;

    —  Representatives who went to Sydney have now had time to ingest what they observed at the Olympics and have fed the key lessons back to colleagues. There is a genuine feeling that the Commonwealth Games can do for Manchester what the Olympics did for Sydney.

  Manchester is feeling positive and confident that the XVII Commonwealth Games will be a huge success.


What was the rationale for the recent organisational changes for the management of the Games?

  In February 2000, Charles Allen was appointed Chairman of the Organising Committee following an announcement by Robert Hough of his intention to retire from that position. We are delighted that Robert Hough continues as a member of the Organising Committee and as Vice President of the XVII Commonwealth Games.

  Roger Pannone took up the post of Deputy Chairman in place of Sir Rodney Walker who continues to serve on the Board of M2002 Ltd. In January 2001, Sir Rodney resigned from the Board of M2002 Ltd due to his new responsibilities in relation to Wembley Stadium. It is anticipated that he will be replaced by a highly respected figure from the Sporting World in the near future.


What progress has been made in the transport strategy for the Games, including discussions with private transport operators and policy on car transport and parking? What is the estimate for the use of different modes of transport to major venues on major event days?

  Potentially up to one million people will visit Manchester to watch the Games. Many others will want to come to share in the experience and to visit the associated Cultural Festival. M2002's current working hypothesis based on experience elsewhere is that 80 per cent of visitors will be day visitors and that these people will come from an area which is within two hour's travelling time of the City. Work is currently underway by specialist transportation planners to assist in the identification and evaluation of trip patterns which would be generated, and the options that people will then have for getting to and around Manchester. This includes the preparation of forecasts of the modal split both for people coming to and travelling within Manchester between different venues by session.

  For all trips, both Manchester City Council and M2002 would wish as far as possible to encourage as many people as possible to visit the Games on public transport as this will reduce the demands on the local road network. As far as travel to Manchester is concerned, Manchester lies at the hub of an extensive inter-regional rail network that provides frequent links with all the major conurbations and M2002 intends to work with all operators to develop attractive ticketing packages for the Games. M2002 will also be working with coach and tour operators to facilitate travel to Manchester for the Games. As far as travel between venues is concerned, M2002 is already in discussion with the private bus operators who operate in Manchester about the possibility of introducing special ticketing arrangements at the time of the Games, the aim of which is to try to ensure that a Games ticket will also include access to local public transport. A key requirement will be the need to provide for the large numbers of people moving between the City Centre and Sportcity and the provision of a shuttle bus service on a dedicated route by making use of the eventual Metrolink alignment and bringing forward infrastructure which will ultimately be required for Metrolink has already been the subject of discussions with DETR. A key factor in encouraging people to use public transport to get to Manchester will be the availability of late evening services to get people home and this is equally true for people making relatively short journeys to the City. Apart from Metrolink, which provides a frequent service until after midnight, most local bus and rail services operate at much reduced frequencies in the evenings. Discussions are therefore taking place with the bus operators to ensure that suitable public transport is available late in the evening to take people home after evening sessions and similar discussions will be had with local rail operators once the outcome of the current tendering exercise for local rail services is known.

  Whilst every effort will be made to encourage people to come to Manchester by public transport, many people will undoubtedly want to use the car to get to the city. The work which is currently underway will provide more information about the nature of the demands that are likely to have to be met in relation to car parking and on the identification of potential temporary car parking provision during the games. The objective will be to ensure that even when cars are used to get to Manchester they are not used to travel between venues. Both M2002 and the City Council recognise the importance of ensuring that car parking arrangements at venues are sensitive to local areas and needs.

  The key to a successful Games will be to harness all the resources that normally meet these needs in a way which will meet the requirements of the people who visit the City for the Games and which also facilitates the smooth operation of all the other activity in the City, including the Cultural Festival. Given the legislative framework within which public transport is provided in the City this has to be achieved by negotiation and with the goodwill of all the operators and discussions are underway to deliver this outcome.


What is the timetable for completion of sponsorship agreements? And what is the current position with regard to sponsorships?

  M2002 Ltd has announced over £18 million of commercial income including four official sponsors and two official partners (each investment between £1 million and £8 million). Further sponsorship announcements are expected in February.

  The focus to date has been on securing agreements with companies whose products/services make up an essential element of Games implementation, where the sponsors' early engagement has assisted M2002 to either reduce costs, reduce risk or enhance the product.

  M2002 would anticipate formalising major sponsorship deals throughout 2001 and well into 2002—non-operationally critical sponsorships can be signed right up to the month of competition (and past experience of major events demonstrates that they often are).


Will the company provide the Committee with separate budgets for capital and running costs for the Games?

Have there been any changes in the estimated outturn for any facilities being developed for the Games and, if so, what is the reason for any revision of estimated outturn?


  Manchester City Council is responsible for procuring the new facilities within Manchester which will be required for use during the 2002 Commonwealth Games period.

  The Manchester Aquatics Centre is a partnership between the City Council, Sport England, the ASA and the three Manchester Universities. The Centre was officially opened by HM The Queen on 12 October 2000, and was delivered on budget for £32.7 million. The centre will accommodate the swimming, synchronised swimming and diving events.

  The International Convention Centre is now nearing practical completion and is a joint venture between the Council, English Partnerships, G-Mex Ltd. It incorporates funding contributions from a range of public agencies including the European Union. This facility will also be delivered on budget (£23.3 million) and will accommodate the Weightlifting event during the Games. Gymnastics, Judo and Wrestling will also be held in the adjacent G-Mex Centre.

  The Belle Vue Leisure Centre will be the location for Hockey. This is a partnership between the City Council, Sport England and the English Hockey Association. Two water-based hockey pitches will be provided together with overlay facilities. A planning application has been made which will be determined shortly. Tender documentation is now being prepared. A contractor will be appointed in March allowing for a 22 week construction period with practical completion of the new facility being achieved in September 2001. The majority funding for this facility is being provided by Sport England. The present estimate is of the order of £3 million.

  The English Institute of Sport represents the several sports facilities to be provided at Eastlands as part of Sportcity, in partnership with Sport England and Governing Bodies. It will accommodate Squash and Table Tennis for the Games. The scheme was granted planning permission in September 2000, and a contractor was appointed on 15 December 2000. Site construction works commenced in January 2001. Practical completion is scheduled by the end of February 2002. The construction contract has been let in full accordance with the budget of £16.7 million which remains the outturn target.

  The City of Manchester Stadium itself remains on programme. The Council has now let 86 per cent of the works packages and substantial completion will be achieved by the end of this year when access for fit-out will be available. Most of the frame is now complete and roof steelworks operations commenced in November 2000. Practical completion of the Stadium in Games mode (including fit-out) will be in March 2002. The current projected costs (excluding land and internal project management) for this Phase of the Stadium and advanced work and fees for Phase 2 (conversion of the Games Stadium for subsequent occupation by Manchester City Football Club (MCFC) in 2003) are £87.5 million—the current approved budget for Phase 1 and 2 of the Stadium is £94 million. A report will be submitted to the City Council in June 2001 when the fixed costs of Phase 2 should be clearer. The Council is working with English Partnerships and the North West Development Agency on a strategy for implementing a high quality public realm for the Eastlands site which will link the Sportcity development with the Ashton Canal corridor. It is also working with GMPTE on the integration of Metrolink works on the site and with AMEC who are responsible for delivering the associated commercial development.

  The operation and functionality of the Stadium in Games "mode" takes into account all current M2002 requirements, including fit-out for which agreement has been reached with MCFC (the ultimate occupiers) on procurement details. A specialist operator for the stadium will be appointed shortly following competition. For the visit of the Select Committee to Manchester a technical paper will be provided showing the detailed specification of the stadium in Games "mode".

  The other Games development within Manchester is at Heaton Park which will host the Lawn Bowls events. These costs of £1 million are funded entirely by the City Council. The project remains on target for pre-event play to be possible in August of this year. Green construction and turf production is well advanced, with the turf being laid in early spring. A contractor has been appointed for the main pavilion.

  Outside Manchester, two venues require development/enhancement. The new indoor Arena at Bolton (which will be used for Badminton during the Games) is well advanced and will be completed shortly. The budget for the Arena is £16 million and is being funded by Sport England, the Lawn Tennis Association, Bolton Council and the Foundation for Sports and the Arts. The National Shooting Centre at Bisley will be redeveloped at a cost of £6.7 million and this development is being overseen by Sport England. This too is being procured in accordance with programmes.

  All facilities for the Games are either complete, or on programme for successful completion in time for the Games. Sport England's contribution to facilities within Manchester is currently fixed at £119.4 million (including £77 million for the Stadium). The City Council's capital contribution to date for all facilities which will be used for the Games is presently at £40.75 million (including land and other costs such as project management).

5.2  Revenue Budget

  The Revenue Budget for M2002 Limited is in the process of being reviewed as operational plans are becoming more clearly defined. The budget prior to any revisions which may arise from this process is as follows:

£ million
£ million
Sponsorship and TV incomeTicket sales
Property insurance, office equipment and other corporate services
Merchandise and licensing
Venue hire, fitout and management
Sports, medical and athletes' travel
Marketing and publications
CGF/CGA obligations
Volunteers and ceremonies

  In addition to the budget above, the Government has committed in principle to provide funding of £10.5 million to enhance the quality of the Opening and Closing ceremonies above the amount included within the £62 million.

  The cost of human resources is also excluded from the £62 million budget as these costs are being met by Manchester City Council through a combination of secondments of its own staff and the payment of salaries of staff recruited externally. The present budgeted cost to the City Council of this support is £10.5 million.


What progress has been made on a code of practice on ethical trading for the Games and, if this code of practice has been finalised, can a copy be supplied.

  Please refer to attached "Sustainability Strategy" which has now been adopted by the Company.[2]


What criticisms of the preparations for the Games were made in the recent independent audit and what is the company's response to those criticisms.

  The report from the CGF detailing the results of the recent independent evaluation visit will be forwarded to the Select Committee when it has been finalised. It is anticipated that the report will be available in early February.


What is the timetable for negotiations on the sale of overseas television rights?

  The BBC was appointed as host broadcaster and domestic rights holder for the Commonwealth Games in February 2000. Since then, Manchester 2002 has been working closely with its TV advisors to sell the TV rights overseas.

  The major Commonwealth markets are Australia, New Zealand, Canada, South Africa, Asia and the Indian sub-continent.

  The Australian rights have been sold to Channel Seven which was announced on 19 January 2001. In respect of other markets, discussions with broadcasters are ongoing and it is intended that Heads of Terms should be agreed by Spring 2001.


What lessons were learnt by organisers from observation of the Sydney Olympics?

  A report giving an overview of the key lessons learnt by the organisers is attached.*


  A successful Games is crucial in the national interest. We must as a Nation consistently attract world class sporting events to this country.

  History has shown us that hosting a major sporting event which merely creates significant amounts of civic pride and feelings of goodwill is no longer enough. Responsibility to address social exclusion, disadvantaged communities and to bring about regeneration in run down areas is now recognised as an essential part of hosting major events.

  Across the world, nations and cities are competing in bids for major events in order to secure the positive legacy benefits they can deliver to their host communities. The Games offer a UK potential to secure direct and indirect benefits in economic, tourism, social and sporting terms.

  The impact of the Games will be felt long after the event closes on 4 August 2002. Manchester will have new world class sporting venues which will be used by the community, elite athletes and provide a compelling attraction when bidding for future international sporting events.

Sporting Benefits

  Sporting facilities are the most tangible legacy for Manchester and the North West region which are designed for maximum usage post-2002 by elite athletes and community. Sport England will ensure sport development initiatives are in place and through the Spirit of Friendship Festival will deliver a programme of events aimed at stimulating grass roots sport and curriculum to promote sport in schools.

  Sportcity in East Manchester is one of the biggest investments in sporting facilities this country has ever seen where the City of Manchester Stadium will be the focal point for the Games. There will be seating for 38,000 during the Games and this will be increased by 10,000 after the Games when the Stadium is handed over to MCFC. This will be joined by a range of facilities for elite athletes and the community. Major commercial investment is also now committed subject only to planning.

  The Manchester Aquatics Centre, the first new venue for the Games, completed two years ahead of the Games, is the only complex in the country with two fifty metre pools. Improvements to other sporting facilities such as Belle Vue where the hockey will be located, at Heaton Park's new lawn bowling greens, a new sports facility is being built in Bolton for the badminton event and a £4 million upgrade to shooting facilities in Bisley, Surrey.

  The Government is committed to providing more sporting opportunities to more people, working with Sport England. The Sport Strategy which the Government has implemented pulls together a wide range of initiatives actively encouraging sport in the community. A number of initiatives are in place to make sure that happens including the appointment of 600 schools sports co-ordinators to work at grass root levels.

  The Games will be an inspiration to youngsters all over the country. With such exposure we anticipate more young people will come through to take part in sport.

Economic Benefits

  The Games and associated facilities are predicted to produce significant economic benefits at a local and regional level.

    —  4,494 total direct permanent and 10 year equivalent jobs;

    —  998 net additional permanent and 10 year equivalent jobs;

    —  40 hectares of land reclaimed;

    —  51,223 square metres of new floorspace for related retail and leisure development;

    —  £110 million increase in Gross Value Added.

  At the regional level a further 1,187 total direct permanent and 10 year jobs are expected.

  The economic and social regeneration of East Manchester is now gaining increasing momentum. A partnership involving the City Council, the community, English Partnerships and the NWDA is driving forward overall regeneration plans which place Sportcity at their heart.

  The XVII Commonwealth Games Volunteer Programme will be the largest single recruitment training and placement exercise of this nature to have taken place in the UK in peacetime. 15,000 volunteers will be recruited and the Games will set new standards in volunteering. Particular emphasis is being made to link the volunteer programme with local people throughout Manchester and the NorthWest.

Tourism Benefits

  In terms of tourism the combination of physical improvements, the cultural festival and the Games themselves will present a vibrant and attractive image to visitors and will have a positive impact on future visitor numbers to the region.

  Major sporting events play a key role in marketing the region and UK overseas. The Games lie at the heart of both the British Tourist Association's Sport Tourism Strategy and the North West Tourist Board drive to attract more tourists to the region.

Social Benefits

  There are benefits to be gained from NW partnerships. There will be educational and employment initiatives, sports development and healthy living activities which will impact upon the health education and lifestyle of people in the region. These are being reinforced through a Single Regeneration Budget programme which is related to the Commonwealth Games.

  The 2002 Commonwealth Games represents a unique and unprecedented opportunity for Manchester and the whole region to promote itself on a worldwide stage and to create a long-term legacy at a national, regional and local level. The combination of the biggest multi-sport event ever held in this country with Her Majesty The Queen's Golden Jubilee makes the overall event and the festival one of national significance.

  The XVII Commonwealth Games will be good for Manchester, the North West and the country—it will be a once in a lifetime experience. Everyone should Count Themselves In!


  Plans for the 2002 Games are on target and on course for success. Organisers look forward to welcoming the Select Committee to Manchester in March.

  We are confident that we will rise to the challenge of setting a new benchmark in the hosting of major international events through the delivery of the 2002 Commonwealth Games.

January 2001

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