Select Committee on Culture, Media and Sport Third Report


III BACKGROUND

Development of a London bid for the Olympics

· The timetable of key events and decisions relating to bidding for the 2012 Olympics is summarised in the table set out below.

DateEvent/action Comment
Sept 1993Sydney awarded the 2000 Olympic and Paralympic Games. Manchester fails for a second time, having bid also for the 1996 Games. Third loss for a British bid (Birmingham beaten by Barcelona for 1992). The Olympics have been held in the UK in London in 1908 and 1948 (when the Stoke Mandeville Games began which grew into the Paralympics).
1995National Olympic Committee of the BOA (representing 35 sports governing bodies) decided that the next bid would be from London. A review of IOC members in 1994 indicated London as the only British city able to attract enough votes to win a bid.
1997Manifesto commitment by the Labour Party to bring the Olympics to the UK. The BOA decided to focus on 2012 as the next possible date for a bid. BOA felt that a European host for 2004 and a strong Beijing candidacy did not augur well for the UK in 2008.
1997 - 2000Feasibility study of a London Olympic bid conducted by the BOA and London International Sport: village, transport, facilities and sustainability examined. Report delayed by withdrawal of athletics in 1999 from proposals for a new Wembley national stadium.
  Largely in parallel, proposals for a new national stadium at Wembley emerge and develop. Progress of the design and financial arrangements, including a £120 million Lottery grant, was and remains the subject of controversy. Originally designed for dual use (field sports and athletics). The Funding Agreement includes obligations for the stadium to be available for major athletics events including the Olympics.
1999The IOC responded to allegations of corruption with an inquiry by a special IOC Commission. The Commission recommended reform and punishment of offenders: there were four resignations, six expulsions and ten official warnings. Reform centred on the bid process, transparency of financial matters and changes to the constitution of the IOC: 115 members (under the age of 70)—15 active Olympic athletes elected by their peers, 15 from the national Olympic committees, 15 from international sports federations and 70 individual members. Other particular measures included:
abolition of visits by IOC members to Candidate Cities;
a reduced term of office for IOC president;
establishment of an IOC Ethics Commission;
publication of reports on sources and use of the Olympic Movement's income;
IOC Session opened to the media for the first time.
15 Dec 2000Confidential report submitted to the Government by the BOA on options for a London Olympics. East and West London options were assessed (but not an East/West village/stadium mix).
Feb - May 2001Presentations of the BOA report to a range of stakeholders and other parties. These include, in March, one to the new Mayor of London.
Nov 2001Confidential report by surveyors Insignia Richard Ellis to a "Stakeholders Group" (Government, GLA/LDA and BOA) on land availability for a London Olympics. The report identified 4 main sites all in East London (on the basis of IOC criteria and study of previous Olympic bids).
Jan 2002Arup commissioned by the Stakeholders Group to estimate the costs and benefits of a London Olympic and Paralympic Games in 2012. The Government began its analysis. Arup was asked to assess the implications of a Games staged in the Lower Lee Valley, East London.
May 2002Submission of Arup's conclusions to the Stakeholders Group
May 2002 - Jan 2003Government seeks to clarify its position, assessing:
- the costs and revenues identified by Arup as a basis for long-term public expenditure planning (involving a critical appraisal of risks and contingencies, a probability analysis, and benchmarking against the Sydney 2000 Games);
- the possible diversion of funds from other schemes and projects;
- the most effective delivery vehicle for the Games (including the role for Government);
- transport arrangements based on existing infrastructure and traffic management (and costings where possible);
- the potential for a football club to take on the new main stadium;
- legacies in former Olympic host cities;
- potential legacies in the UK for élite and grassroots sport;
- the impact of the Games on the current Thames Gateway Regeneration plan for the Stratford area;
- the economic impact for the UK of staging the Games;
- the likelihood of London winning the bid; and
- public opinion
Sept 2002Submission of "winnability" study by UK Sport to Government. Government's other key tests are: cost, delivery and legacy.
26 Sept 2002Wembley National Stadium project achieved financial close and work commenced to clear the site for construction. Original multi-sport design, and contractual obligations regarding athletics, remain in place.
1 Nov 2002 Publication of Arup study summary Limited detailed information.
28 Nov 2002Interim report to IOC Session from its Olympic Games Study Commission (remit: the means by which the costs, complexity and size of the Games can be controlled). The report recommended amending the Olympic Charter to emphasise the importance of the Games legacy in host cities.

Transparency

1. Both the Secretary of State and the Minister for Sport suggested that the Government had followed the Committee's process as recommended in previous Reports.[7] We do not altogether agree. A key factor in the recommendations of the previous Committee was the timely publication of the relevant material for the purposes of clarity in public debate. The previous Committee recommended that, in advance of any decision to bid for a London Olympic Games, the Government should:

  • seek and publish the views of Sport England and UK Sport on the BOA's Olympic Games feasibility study of December 2000;

  • set out its overall rationale, the objectives of staging the Games and the strategy to ensure enduring economic, social and regenerative benefits;

  • publicise its views on where in London an Olympic bid should be concentrated and be explicit about how to preserve the opportunity to use the identified sites, while not jeopardising regenerative development there;

  • publish an assessment of the facilities for a London Olympics, specifying for each facility the likely sources of funding;

  • set out its proposals for a main stadium including specifics about the site, funding arrangements for both stadium and surrounding infrastructure, proposed design concept and long­term use and viability;

  • publish an assessment of the transport and wider infrastructure changes required, clearly distinguishing between investment that would be justified on other grounds and costs specific to the Games; and

  • commission and publish independent analysis of the likely total cost of a London Olympic Games, accompanied by a statement from the Government about the extent of the Exchequer commitment both to meet these costs and to underwrite the Games.[8]

2. At the time the Government welcomed the Committee's views on what should inform the decision on whether to bid for the Olympics as helpful and timely. It noted the Committee's decision not to make definitive recommendations at that stage and appreciated the range of relevant issues identified. The Government stated that it would "assess the viability of any BOA bid before giving support and ... work closely with the Government Office for London, the Mayor of London, the GLA, and the BOA" in doing so.[9] So far the process followed by Government has produced in public no more than an anaemic 12 page summary of a 250 page document containing only impenetrable, estimated, aggregate costs. We were grateful to receive confidential copies of the full report containing financial estimates for a "specimen" Games. However, this was of limited use for the purposes of accountability and none whatsoever with regard to public debate. At our request the Department submitted, for publication, a supplementary memorandum on its own further analysis of Arup's high level cost estimates (and this material is discussed below).[10]

The timetable to 2012

3. The timetable of IOC deadlines, planned developments in London and other relevant events from now, in 2003, until 2012 is set out below (entries relating to the IOC schedule for the 2012 bidding process are in italics).

Date
Action/event
30 January 2003Cabinet deadline for a Government decision on whether to support a bid. If Government decides to back a bid, work will need to start immediately to meet the November 2004 deadline for submission of the required file.
May 2003Invitation to National Olympic Committees to nominate Applicant Cities.
15 July 2003Deadline for nomination of Applicant Cities.
15 January 2004Deadline for submission of response to Applicant Questionnaire
(end of phase one process).
May/June 2004Selection of Candidate Cities by the IOC Executive Board
(start of phase two process).
13-29 August 2004Athens Olympic & Paralympic Games.
15 November 2004Deadline for submission of full bid (Candidate File).
February-March 2005IOC Evaluation Commission visits Candidate Cities.
May 2005Evaluation Commission report to IOC.
July 2005Election of Host City for 2012 by IOC.
5-14 August 2005World Athletics Championships, Paris.
2006(i) Planned opening of Wembley National Stadium.
(ii) Central Line upgrade to deliver increased peak services.
(iii) Possible date for completion of upgrade to Stratford regional station (subject to availability of funds).
11 June 2006Last possible sitting day, under statute, of the 2001Parliament.
2007Planned date completion of the Channel Tunnel Rail Link, St Pancras to Stratford International.
25 July -10 August 2008Beijing Olympic & Paralympic Games.
2008Planned date for completion of the extension of the DLR to Stratford (subject to availability of funds).
2009 Planned date for completion of the Jubilee Line upgrade (including replacement of the signalling system) leading to 45 per cent increase in capacity.
May 2012Planned date for commencement of Crossrail Line 1 train service assuming a November 2003 start to the programme (Line 2 planned to be operational in 2014).
August 2012Summer Olympic & Paralympic Games of the XXX Olympiad.






7  
QQ 162 and 152 Back

8   Third Report, 2000-01, Staging International Sporting Events, HC 286, see pages xlixff Back

9   Government Response to the Third Report from the Committee, Session 2000-2001, Cm 5288 Back

10   See Ev 60ff and, below, paragraph 20 Back


 
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Prepared 23 January 2003