Supplementary Memorandum submitted by
Sport England
1. How did the sports distributors arrive
at the figure of £340 million, between 2005 and 2009, as
a direct contribution to the staging of a London Olympic Games?
—What consultation took place between
Sport England, UK Sport, Sport Scotland, the Sports Council for
Wales and the Sports Council for Northern Ireland regarding (a)
the total figure of £340 million, (b) the division of the
burden between the distributors, and (c) what the £340 million
is for (eg facilities, elite development or both)?
—What consultation took place between
the Department for Culture, Media and Sport and Sport England
(and/or the other sports distributors) in relation to identifying
the required sum?
The decision that the Sports distributors contribute
£340 million of sports lottery funding (in the period 2004
to 2012) towards the Olympics was taken by Government.
Sport England wholeheartedly backs London's
bid to stage the Olympics in 2012. The bid presents a unique national
opportunity and offers great opportunity for the Country to move
significantly closer to achieving the two primary aims Sport England
has set itself, in line with the Government objectives in Game
Plan:
— Increasing the number of individuals
engaged in sport and physical activity.
— Achieving success in the international
sporting arena.
Sport England has directly earmarked some £157.85
million of its lottery resources for bid and games preparation
between 2004-05 and 2008-09, the end of the current licence period—including
£40 million towards the development of a multi-sport centre
in East London, which will incorporate the Olympic aquatics facilities.
We will firm up our proposals for expenditure
in the period from 2009 through to the staging of the Games once
we have clarified with Government and the other Sports Distributors
the final respective contributions each distributor will make
towards the £340 million total.
As we explained when we gave evidence on 27
January, there is a huge demand for investment in sport across
the Country. We need to make sure that as well as supporting the
Olympics, we continue to invest in community sport across the
Country.
Our commitment to the Olympics will come at
a time when we estimate our lottery income will fall in real terms
by 63% over 11 years, from 1998, reflecting both falling ticket
sales generally and the estimated "cannibalisation"
of the existing games by the proposed Lottery games.
During this same period, core Exchequer funding
will also be estimated to have fallen by 12% in real terms and
at £38 million, currently stands at just 1/10th of the amount
received by the Arts Council.
Any further reductions in Sport England funding
post 2009, over and above its contribution to the £340 million
(the Bill gives the Secretary of State power to amend the Good
Causes allocations) would deprive sport in general (and both the
Regional Sports Boards and the National Governing Bodies in particular)
of the critical financial support needed to sustain improvements
in participation and achievement both in the run up to 2012 and
in the period thereafter.
2. How will the £340 million be
distributed in the event that London wins the bid? Will it be
drawn down following successive applications from the national
organising committee?
3. How will the delivery of sustainable
legacies for sport be ensured arising out of the allocation of
both the £340 million (sports distributors) and the £750
million (Olympic Lottery distributors)? What lessons are there
to be learned from the development and implementation of plans
for the Manchester 2002 Commonwealth Games (or any other national
projects)?
In considering applications for funding we will
apply the same criteria as we apply to any application for Lottery
funding, in order to maximise the return on investment whilst
providing the appropriate level of custodianship of public funds.
Amongst other things we will review:
— Impact on sporting participation.
— Robustness of business planning.
— Evidence of effective partnership.
As the Select Committee noted in its own report,
the Commonwealth Games were a great success—this was partly
Sport England's success in terms of viable projects, legacy, grant
management and event delivery. We believe it is the most successful
outcome of any major lottery project that carried such inevitable
high risk.
Our number one focus and determination was to
ensure that there was a long lasting legacy. As well as the Games
themselves being a tremendous success, we are extremely proud
of the benefits, in terms of sports facilities and regeneration,
which will continue to be reaped for many years to come by the
local community. Sport England is very proud of the role we played
in this.
We believe that one of the important lessons
from Manchester is to ensure that the funding of facilities is
provided by a strategic body that has as a key part of its remit
the need to secure a lasting legacy from the lottery money that
is spent.
In Manchester, Sport England played this role
and was able to ensure that the aspirations and requirements of
the key agencies could be managed effectively, including the City
Council and the relevant National Governing Bodies for sport.
All of the equipment used during the Games is
being used at Sport City or has been re-distributed to other sites
around the country. This includes, for example, the actual track
used for the athletics events, which is now being used in athletics
centres in Wakefield and Nottingham. The warm up stadium for the
Games has been upgraded and will host the Olympic Trials this
year as well providing a training base for Sales Harriers, schools
athletics and elite athletes. The swimming pool used for the Games
has proved to be very successful in meeting the community and
elite swimming needs of Manchester and the surrounding areas.
Manchester City's usage of the City of Manchester
Stadium as part of the deal struck by Sport England subsidises
the rest of Sportscity and will do so for many years to come,
ensuring the facilities are accessible to all of the Community.
We will continue this approach for the Olympics,
establishing stakeholder groups to establish effective consultation
on prospective projects. For example, we have already established
a stakeholder group for the multi-sports centre and Olympic aquatics
facilities, including the London Development Agency, Lee Valley
Regional Park, Newham Local Authority, the Amateur Swimming Association,
DCMS and London 2012.
Without a robust strategy to deliver on sports
development legacy, and to ensure that the facilities fit within
a wider sustainable/viable strategic plan, the legacy gains even
from the Olympic Games will not be realised.
Sport England is concerned that the present
arrangements for the provision of lottery funding to the Olympic
Games will create unnecessary duplication and inefficient use
of scarce resources through the establishment of a specific Olympic
Lottery Distribution Fund. At present this new distributor is
not even required to consult with Sport England.
This is in contrast to the structure that worked
well with the Commonwealth Games. It also creates yet another
sports body when what we actually need is sporting governance
is greater rationalisation and clarity of purpose.
We also remind the Committee that the Government
contributed £30 million to the Games, but this was not passed
through a "Commonwealth Games Distributor". It was passed
through Sport England, joined together with Sport England's investment
into a single funding agreement with Manchester City Council.
We believe that expertise and efficiency go
hand in hand. Sport England has significant expertise in this
area gained from a number of major sporting projects, including:
— Manchester Commonwealth Games
(£165 million).
— Wembley (£120 million).
— English Institute of Sport (£120
million).
— Nottingham Ice Centre (£22
million).
— Sheffield Ice Rink (£13
million)
With a total investment in these projects alone
of £440 million, we have developed partnerships with credible
sponsors, created long-term viability and secured ongoing sporting
legacy.
Sport England can be an effective and efficient
distributor to the sports aspects of the Olympics. Crucially,
Sport England would deliver a better sporting legacy, for both
the local community and for the nation, in terms of a high quality
and sustainable sporting infrastructure than a body whose sole
remit is to think only of the Olympic Games. This legacy would
cover:
— The location of facilities close
to communities but accessible for major events.
— The design of infrastructure
on a scale appropriate to post-Olympic use.
— Raising the profile of sport
and in particular the strengthening of links with health, education,
crime reduction and other areas of socio-economic policy.
— The opportunity to develop and
maintain true multi-agency working relationships.
By focusing the work though Sport England we
would create a knowledge bank that would last long beyond the
closing ceremony, creating a lasting resource of expertise and
experience for future major events and other projects.
11 February 2004
| 
