APPENDIX 3
Memorandum submitted by British Olympic
Association
INTRODUCTION
1. Since 1997 the British Olympic Association (BOA)
has been engaged in preparatory work assessing the requirements,
strategic planning and viability of a future Olympic Games bid
for London.
2. This culminated in a 395 page report which was
delivered to officials in the Department for Culture, Media and
Sport (DCMS) in December 2000. This report was subsequently presented
to the then Secretary of State for Culture Media and Sport, Minister
for Sport, Mayor of London, Greater London Authority (GLA), Opposition
frontbench spokespersons, Sport England and UK Sport.
3. It has been the BOA's approach to this project
to be thorough and methodical and to benefit from early preparation.
This is to create an environment where decisions can be taken
by all key stakeholders with a clear understanding of the issues
involved, the requirements needed, the costimplications
and the potential benefits to all sections of the community in
both sporting and social terms.
4. What is clear is that to have any chance of success,
there must be unanimous, unambiguous and unequivocal support from
all the key stakeholders in the process. The BOA believes that
London can mount a bid that is technically viable when assessed
against IOC criteria, and will be attractive internationally when
put in a competitive bidding environment against other world cities.
KEY
STAKEHOLDERS
GROUP
5. The Key Stakeholders Group is comprised of representatives
from BOA, GLA and Government and was convened in June 2001. The
Olympic Charter states that the BOA is the only body with the
remit to put forward a candidate city from the UK for consideration
by the IOC.
6. The elected representatives of the bidding city
must also be signatories to any proposed candidature. In addition
both central and local government must provide guarantees in relation
to a wide range of issues from planning legislation, customs and
immigration, legal issues, security and financial arrangements.
ROLE
OF
NATIONAL
OLYMPIC
COMMITTEES
IN
THE
BID
PROCESS
7. Following the recommendations of the IOC 2000
Reform Commission, the role of the NOC has been strengthened within
the bid process. The NOC is now required to be involved in any
Olympic candidature as a full partner with the bid committee.
8. The IOC has stipulated that the NOC must take
full responsibility for its Olympic bid
(a) as the sole official
entity authorised by the IOC to submit an application to bid;
(b) to ensure that an
application meets IOC requirements;
(c) for the actions of
the bid committee during the bid application and candidature processes.
WHY
LONDON?
9. Following Manchester's bid for the 2000 Olympic
Games, the views of the IOC and International Federations were
sought as they comprise the voting constituency. This is a process
constantly updated by those people within the BOA who operate
regularly within the international Olympic environment.
10. The conclusion is that from an international
perspective only London would have the status to be competitive
against other leading world cities bidding for the Olympic Games.
A bid based around any other British city would therefore be unlikely
to succeed.
2012 OR
2016?
11. The costbenefit report makes it clear that
to delay a bid for 2016 would raise the serious threat of blighting
much needed regeneration in East London making it 'politically
unattractive'. The conclusion is that no other area in London
has the necessary transport capability nor land availability to
be able to be a viable alternative for a delayed bid.
12. The international desire for continental rotation
means that if a European city were to win the nomination for 2012,
it would be extremely doubtful whether the Games would return
to this continent before 2024 at the earliest.
COST
BENEFIT
ANALYSIS
13. Recent reports have questioned the grounding
of the Arup financial analysis which formed the basis of the independent
costbenefit analysis. The model used by Arup was one which
was requested by Treasury, and which is the standard model used
for investment appraisals of projects of this size. The figures
quoted are 2002 Net Present Value figures discounted at the Treasury
rate of six per cent. This form of Treasury model does not allow
for the inclusion of inflation of figures.
14. Government is currently carrying out an exercise
which aims to budget for a 'bad case' scenario with significantly
reduced revenues and contingency monies associated with poor planning
and execution of the Games. The figures related to this are using
a model based upon overall outturn figures and including inflation
representing 'money of the day' values. The two economic
models are different and any comparison of figures is inaccurate
as it will not be an assessment of likewithlike. It
should be noted that Government's inflated figures will also be
reflected in revenues as well as costs.
SPECIMEN
PROPOSAL
15. The Arup proposal is based around a specimen
Olympic Games proposal with Village and venues located in the
heart of East London. This is currently an area experiencing high
levels of deprivation (for example the Borough of Hackney has
an unemployment rate of nearly 17 per cent).
16. Much of the targeted area currently has Objective
2 regeneration status, although the potential positive impact
of European Union funding was not included in the analysis. A
point to note is that Greece was recently awarded 1.4 billion
euros from the EU for Olympic related transport projects from
the Structural Fund.
TRANSPORT
17. The report shows that London's airports will
'easily' have sufficient capacity to cater for overseas visitors.
The call for an Olympic transport agency with powers to manage
the transport network for the duration of the Games is in keeping
with the arrangements for all host cities.
18. Sydney implemented a wellpublicised scheme
to get people to take public transport to competition venues.
In effect no public carparking was provided and spectators
made the journey via rail, bus or ferry. The long term impact
has been that the Games are now credited with changing many preconceptions
about travel by public transport.
19. Arup concluded that "projected flows can
be accommodated without delays and without unacceptable disruption
to normal travel in London".
ACCOMMODATION
20. The level of available accommodation in London
will be comfortably able to cope with projections of visitor arrivals.
This is even considering that the overseas ticket projections
used in the costbenefit model are greater than any other
modern Games.
21. Accommodation in previous and future Games has
been under scrutiny. The London region's stock of accommodation
by 2012 will be at least 200,000 rooms comparing very favourably
with any other international city.
SECURITY
22. Security is now a concern at all major events,
sporting or otherwise. The Metropolitan Police were extensively
consulted as part of this report dovetailing with their work chairing
the advisory group in Athens.
23. The Arup Report concludes that aside from US
cities "no other bidding city will be able to offer the same
level of security expertise without calling upon outside assistance".
THE
KEY
BENEFITS
OF
HOSTING
THE
OLYMPIC
GAMES
24. British sport. There is a tremendous feel
good factor associated with the staging of an Olympics. Korea,
Spain and Australia all achieved their highest medal tallies on
home soil. The associated investment would also act as a catalyst
for development of other Olympic sports which the UK has traditionally
not fielded teams eg basketball and volleyball. The inspiration
will drive many of our youngsters to take part in sport and pursue
dreams of becoming an Olympian.
25. Health, crime and education. Increased
participation in sport will in turn lead to a healthier society.
Anecdotally, participation in sport has led to downturns in youth
crime and is a stimulus for education. It is the BOA's view that
staging an Olympic Games can be the driving force and stimulus
for nationwide programmes to encourage wider participation from
which these society benefits can accrue.
26. Volunteers. Both Sydney and Manchester
showed the benefits of having a dedicated and enthusiastic pool
of volunteers. The experience of Sydney has shown that this culture
of volunteerism has been continued, with people becoming auxiliary
police officers, community workers, teaching assistants or carers
for the elderly.
27. Social inclusion. The Olympics would be
a driving force for breaking down divisions whether they be age,
gender, race, disability or religion. The Games should celebrate
local communities and ensure that the socially excluded have every
opportunity to engage with the event. The aim is that after the
Olympics, a legacy in terms of improved community leadership,
enhanced cultural networks and a close engagement with the education
sector will remain. This diversity would be celebrated through
the staging of the Olympic and Paralympic Games.
28. Regeneration and new housing. Improved
infrastructure including the provision of 4,000 new and muchneeded
homes in East London will be delivered. It will also stimulate
and bring forward the comprehensive upgrade of the East End environment
by developing contaminated and underused land. An environmental
legacy both through the sustainable design of facilities, but
more importantly through changing perceptions of sustainability—
in its widest sense—can be a tangible lasting legacy for
London of hosting the Olympic Games.
29. Employment. The costbenefit analysis
stated that staging a Games in London would create around 9,000
new fulltime jobs, of which 3,000 would be in the local
East End economy. Businesses would be encouraged to relocate to
the area through improved technological and transport links.
30. Legacy. The Olympic Games will provide
facilities for both élite and grass root sports with defined
legacies. Up to 100 training venues will be required in the form
of refurbished school and community facilities.
31. Tourism. An independent study has shown
that there was over £2 billion in inbound tourism spending
in Australia attributable to the staging of the Olympics in 2000.
The Games give a country a unique opportunity to showcase itself
to a huge global audience. The Sydney Games were the most watched
event in history with an estimated 3.7 billion people tuning in
at some point during the 16 days.
32. UK investment. The expertise and the raised
profile of staging the Games would have a beneficial impact on
UK exports. Hosting the Sydney Games has allowed Australian companies
to win 10 per cent of the capital projects in Beijing bringing
in £1.1 billion.
33. Convention industry. Staging the Games
would provide a significant boost to the convention industry.
The Premier of New South Wales reported that the Sydney Games
created bookings for £233 million worth of international
business conferences. Such opportunities will not be limited to
London alone.
34. Feel good factor. The Commonwealth Games
showed the level of interest that there is in attending major
sporting events in this country. The effects of home support on
improved performances from British competitors cannot be underestimated.
As Manchester showed the feel good factor derives not only from
improved performances, but also from the national and civic pride
that comes from staging a major world event.
35. British cities. It is not only London
that can gain, other British cities and regions would gain through
the preparation and training camps for overseas teams and through
the staging of the football and sailing competitions. An example
of this is the Team GB camp which was set up on the Gold Coast
of Australia in the run up to Sydney. This contributed over £1
million to the local economy over a 12 month period. Given that
there are 199 international NOCs there is considerable
scope for all large towns and cities to attract this lucrative
preGames business.
CONCLUSION
36. The independent costbenefit report has
identified that staging the Olympic Games in London is technically
viable. The financial appraisal attributed to the specimen proposal
indicates that many of the costs can be offset through guaranteed
income much of which will flow via the TV rights and worldwide
sponsorships negotiated by the IOC.
37. The outlook of the Arup Report is upbeat when
assessing the financial situation "in our view it
should be possible to develop the specimen proposal so that the
quantified benefits exceed the costs".
38. The key to the development of this project lies
with the Key Stakeholders Group which must be unequivocal and
unambiguous in its commitment to bring the world's greatest sporting
prize back to the United Kingdom. The costbenefit analysis
concludes that "if all levels of government and other agencies
are committed to a common proposal, the potential advantages of
a 2012 Games centred on the Lower Lee Valley can be developed
into a worldbeating bid".
39. The BOA endorses this view. Given the public
enthusiasm that was engendered by the successful hosting of the
Commonwealth Games, the BOA believes that hosting the Olympic
Games can make a major contribution to the development of sport
and society in the UK.
40. To be successful, the Games bid will need wholehearted
support from all political institutions; the backing of the nation's
media; and a groundswell of support from a sportloving public.
There are many challenges to overcome in mounting a bid for an
event of this scale and there are no guarantees of success. But
the Olympic Games would provide an opportunity for London to reinforce
itself as a world city fit for the 21st Century
at the heart of a confident, competitive and prosperous nation.
TIMETABLE OF BOA PROCESS TO DATE
| Sep 1993 | Manchester fails to secure nomination for 2000 Olympic Games in Monte Carlo. This represents the third consecutive unsuccessful bid from the UK (Birmingham 1992, Manchester 1996, Manchester 2000).
|
| 1994 | Review of IOC members indicates that London is the only British city likely to attract enough votes to win a bid. These views are constantly monitored and updated through BOA and governing bodies.
|
| 1995 | National Olympic Committee of BOA (representatives of the 35 Governing Bodies of Olympic Sports) decides that next bid will be from UK's capital.
|
| Feb 1997 | Work begins on a potential London bid with a review of 2004 bidding cities and IOC requirements for staging a Games.
|
| Aug 1997 | Olympic Village, Transport and Facilities working groups set up to address key issues related to bid work.
|
| Jun 1998 | Environment working group set up to underpin work of other groups. The group evolves into the Sustainability working group.
|
| Dec 2000 | BOA deliver 395 page report on a potential London Olympic Bid to officials in the Department for Culture, Media and Sport.
|
| Feb 2001 | Presentation to Secretary of State and Minister for Sport at DCMS.
|
| Mar 2001 | Presentation to Mayor of London.
|
| Apr 2001 | Presentation to Conservative frontbench spokesmen.
|
| May 2001 | Presentation to Mayor's advisory cabinet.
|
| Jun 2001 | Key Stakeholders Group (Government, GLA, BOA) is created.
|
| Jul 2001 | Presentation to Liberal Democrat frontbench spokesman
|
| Nov 2001 | Production of Insignia Richard Ellis report into land availability for Olympic Games.
|
| May 2002 | Arup complete costbenefit analysis study.
|
| Nov 2002 | Publication of summary of costbenefit analysis. Mayor and BOA hold joint press conference to respond to conclusions of report. Mayor confirms his support for a London bid. BOA present Olympic bid work to National Governing Bodies of 35 Olympic sports and receive unanimous support. Athletes' Commission gives enthusiastic backing to proposed bid. Liberal Democrats and Conservative parties back viable London bid. Local boroughs supportive or unopposed to Olympic bid.
|
| Dec 2002 | British Paralympic Association unanimously backs proposed bid. Briefings in the House for Members of Commons and Lords. London First, London CBI and London Chamber of Commerce and Industry jointly sign a letter to the Prime Minister supporting bid proposals.
|
| Jan 2003 | Government to decide by end of month whether to support London bid.
|
| July 2003 | Last date for formal nominations of potential host cities by NOCs to IOC.
|
| Jan 2004 | Applicant City questionnaire to be completed.
|
| JanJun 2004 | IOC/experts to examine replies.
|
| Jun 2004 | IOC Executive Board to decide on acceptance of Candidate Cities.
|
| Aug 2004 | Athens Olympic Games
|
| Nov 2004 | Candidature files to be received by the IOC.
|
| FebApr 2005 | Evaluation Commission visits.
|
| May 2005 | Evaluation Commission report.
|
| Jul 2005 | Election of Host City for 2012 at IOC Session in Singapore.
|
10 January 2003
| 
