APPENDIX 5
Memorandum submitted by the London Development
Agency
1. The London Development Agency is London's economic
development body, promoting economic renewal and development.
Working for the Mayor and in partnership with business and others,
it benefits all Londoners by delivering sustainable regeneration
of London's economy. The LDA was set up in 2000 and is one of
nine governmentfunded Regional Development Agencies in England.
2. We welcome the Committee's Inquiry into a potential
London Bid for the Olympics as an important contribution to this
debate. We very much welcome the opportunity to give evidence
and look forward to hearing the Committee's recommendations.
BACKGROUND
3. The Mayor of London, Ken Livingstone agreed to
meet the British Olympic Association two years ago. The British
Olympic Association took the view that for Britain to mount a
successful Olympic Bid it would have to be centred in London.
In response the Mayor agreed to support a bid providing it satisfied
the following criteria
- The bid should be centred in East London
- The bid should recognise the diversity of London
- The Government should underwrite the cost of
the bid and the games
4. It was agreed that a committee would be formed,
chaired by the British Olympic Association which would look into
the efficacy and feasibility of bidding for the Olympic Games
in 2012. The Mayor nominated three representatives to sit on that
committee to represent London's interests. The Committee was set
up and in addition to the mayoral nominees, included representatives
from HM Treasury, PIU, Government Office for London, UK Sport,
Sport England, DCMS and the British Olympic Association as a core
membership.
5. Key issues raised at the first meeting of the
Committee were Britain's credibility in relation to international
sporting events. It was agreed by the Committee that a thorough
piece of prefeasibility work needed to be carried out in
order to look in detail at the costs and benefits of taking forward
any Olympic bid. The London Development Agency on behalf of the
Committee jointly commissioned with DCMS and the British Olympic
Association, an independent report to assess the feasibility of
bidding for the Olympic Games. A rigorous procurement process
was carried out which complied with European Procurement Regulations,
a budget was agreed and Arup Associates were selected and formally
appointed to undertake this piece of work.
6. The LDA believes that the Report provides an important
first step in assessing the benefits associated with a bid. The
process of assessing the feasibility has been professional, considered,
cautious and realistic. It has been based on all the facts available
and has drawn on the experience of experts from this country and
abroad involved in similar projects. If the bid is going to progress,
clearly more feasibility work will need to be undertaken to build
on this important initial piece of work.
7. Arup's findings were presented to the Committee
in June 2002 and subsequently were circulated more widely to interested
parties. The East London boroughs affected by any Olympic bid
were also consulted throughout the process.
8. The considerable benefit highlighted by the Arup
Report, added to the success of the Commonwealth Games in Manchester
and the resolution of the Wembley Stadium project add positive
factors to the case for bidding.
COMMENTS
AND
RECOMMENDATIONS
9. Based on Arup's findings and an assessment of
experiences in the UK and abroad, the LDA believes that an Olympic
Games would have a positive impact on the economic and social
development of London. The LDA would therefore support a bid.
10. The LDA believes that a bid would only have a
chance of success with the Government's unequivocal backing. The
LDA urges the Government to give a bid a clear commitment.
11. The LDA shares the Culture, Media and Sport Committee's
own recommendation that the Government appoints a dedicated Minister
to sponsor a bid, providing clear leadership and focus.
12. The LDA believes that a bid for the Games would
create greater focus for the regeneration of one of the most deprived
areas in the country, in East London. This area has already been
identified by the Government and the LDA as a major priority for
economic development, as much of it is derelict, underused and
faces a number of other social and economic problems including
social exclusion. A bid would provide focus and enable comprehensive
development of this area.
13. Bid proposals are being developed in line with
the objectives of the draft London Plan and the LDA's Corporate
and Economic Development Strategy. Proposals will also be linked
to local regeneration strategies promoted by the local authorities.
The LDA will continue to liaise with the relevant local authorities,
local regeneration agencies and major landowners in the area.
A significant proportion of land required to construct the facilities
is already in public ownership and a number of existing facilities
in the Capital are likely to be utilised.
14. The LDA has been working closely with other parts
of the GLA group in developing the proposals, most notably with
Transport for London on transport issues and Metropolitan Police
on security.
15. Since the publication of the Arup Report, the
LDA has followed up some of the work identified, especially related
to land ownership and assembly issues. Chartered Surveyors Insignia
Richard Ellis and Solicitors Eversheds have undertaken further
work on these issues, including exit strategies if London's bid
is unsuccessful.
13 January 2003
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