Memorandum submitted by the Greater London
Authority and LDA
KEY ISSUES
Achievements so far
1. The Mayor has directed the LDA and Transport
for London to begin the early work on the infrastructure that
will make the Games possible.
2. Key appointments have already been made
to the interim Olympic Delivery Authority.
3. J Murphy & Sons Ltd have been awarded
the contract to carry out tunnelling work before power lines in
the Lower Lea Valley can be buried underground—a contract
worth £70 million.
Transport
4. Significant progress is already being
made by TfL and other transport providers in delivering both the
new projects and improvements to existing public transport that
will be needed to meet the requirements of the 2012 Games.
5. East London Line—extended
to Dalston and Crystal Palace, running eight trains per hour connecting
South, East and North London from 2010.
6. DLR—extensions and a three
car upgrade of the existing network will deliver a 50% increase
in the DLR's capacity by 2011; the City Airport extension will
open in December 2005.
7. London Underground—by 2012
over £4 billion will have been spent on the modernisation
and renewal of the network.
8. Buses—in 2012 a 9,000 strong
fully accessible fleet will provide real time passenger information
on board buses as well as at stops.
Governance of the Olympic project
9. The Olympic Board is responsible for
co-ordinating the overall Olympic project, including the work
of the two main delivery bodies (LOCOG and the ODA). The Board
must formally approve the delivery bodies' budgets and business
plans every year. The Olympic Board consists of: the Mayor of
London, the Secretary of State, the Chairman of the British Olympic
Association and the Chair of LOCOG. The inclusion of the Mayor
and Secretary of State ensure democratic accountability for the
delivery of the Olympic project.
10. The lessons from previous Games show
that there are massive benefits to be derived from the Games.
LOCOG has worked with Government to establish the Nations and
Regions group. As part of this group, there will be a specific
grouping of bodies with an interest in London. This won't just
be looking at the sporting legacy, but will address the benefits
we foresee in terms of housing, employment and training, volunteering
and culture. It will also be responsible for the engagement and
consultation with London's communities that must underpin this
process. In London, the LDA will be taking a leading role in realising
and maximising the benefits.
Funding and Council Tax
11. The agreement on funding is a good and
fair deal. The contributions to the public sector funding package
(PSFP) from the National Lottery, London council tax and the London
Development Agency reflect the extent to which the benefits of
the Games will be felt nationally, but with a particular focus
in London.
12. No Stakeholder has seen the need to
renegotiate the agreement on how shortfall in the Olympic budgets
would be met. Since London's election on 6 July, the other Olympic
Stakeholders have focused on essential and time-critical elements
of the Olympic project such as the approval for the LDA and TfL
to begin work on key elements of the project including the Olympic
Park development.
13. The agreed budgets for the London 2012
Games are robust: they have been approved by all the Stakeholders
and the IOC and are fully met by the investment agreed through
the Memorandum of Understanding between the Mayor and Government.
The IOC Evaluation Commission described London's budgeting process
as very detailed and meticulous" and stated that its
"assumptions are well supported and documented".
14. It is not appropriate to cap the contribution
of London council taxpayers, so that it does not exceed the maximum
£625 million already agreed. Work to date, and ongoing, is
focused on delivering the regeneration, infrastructure and facilities
required for the Games on time and in line with the prudent budgets
already agreed. In the event of over-run, the Stakeholders will
consider all the options available to them; it would not be prudent
arbitrarily to close off any options at this stage.
15. It is expected that the GLA will grant
money raised through council tax to the ODA for investment in
the Olympic project, subject to the funding agreement that normally
applies in such cases. As with any grant, the GLA chief finance
officer will account for the grant funding; this will involve
ensuring that the grant is being spent on the functions for which
it was granted and in turn reporting to the Mayor and Assembly.
The Interim Olympic Delivery Authority: Role of
TfL and the LDA
16. The Mayor directed TfL and the LDA to
act as the interim Olympic Delivery Authority simply because he
was keen that there be no ambiguity about the role of TfL and
the LDA, and that publicly available documents would set out exactly
what was planned and expected. Through the Mayor's direction,
the work of the interim ODA is directly traceable to the Olympic
Board, just as the work of the permanent ODA will be.
17. The LDA is committed to assisting businesses
and assessing their needs. The LDA has been working closely with
the various groups, including the businesses that would need to
be relocated to make way for the Olympic Park, on a case by case
basis for nearly two years. They have also given firm assurances
about the support that businesses will receive. Businesses will
be compensated and supported as generously as possible, within
the legal framework in which the LDA operates. In fact the LDA
has gone well beyond its obligations by offering appropriate relocation
options and agreeing to pay for their legal and surveying advice
ahead of the bid decision. Work to identify appropriate relocation
options are well underway and detailed negotiations are progressing
with many of the businesses.
18. It is clear that preparing for the Games
presents a massive opportunity for companies of every size in
London and across the whole of the UK to compete for new contracts.
For the next few years, initial opportunities will be focused
on infrastructure. However, the Games will also provide potential
for businesses in a range of different industries including construction,
professional services, tourism/hospitality, leisure, transport,
retail, food and the creative and cultural sectors.
19. In order to increase the chances of
winning contracts, small and medium size enterprises (SMEs) need
to be in a position where they can compete effectively—or
be "fit to supply". London already has a number of excellent
programmes in place to help SMEs develop this knowledge. A good
example is the LDA's pan-London initiative, "Supply London",
which works with SMEs and helps provide the support necessary
to become fit to supply. Other recommended services in London
are provided by Manufacturing Advisory Service, Jobnet (run by
London Riverside) and Fit to Supply. Outside of London, SMEs need
to be talking to their local Regional Development Agencies (RDAs)
who already assist in co-ordinating extensive support for business.
20. In addition to existing services, there
will be a need to develop more tailored support initiatives, such
as Olympic business clubs and market intelligence networks that
are specially geared for the needs of the Games. The stakeholders
(Department for Culture, Media and Sport, the Mayor and the British
Olympic Association) for the Games are now looking closely at
building on previous successful models, like those used in Sydney
for example, and discussions are taking place now about the best
way to set these up. Any business initiatives for the Games will
be up and running and integrated within regional support provision
well ahead of major construction milestones.
Community and borough engagement
21. Engagement with London's communities
will be underpinned by the Local Community Involvement Framework
which must be agreed as a pre-commencement condition for the Olympic
Park planning consent. This framework will build on already established
links with key agencies representing the health, education, children
and young people, disability, voluntary and community sectors
and ethnic and faith communities.
22. LOCOG is appointing a Community Liaison
officer to co-ordinate this work, working closely with the GLA
Stakeholders team and the other Olympic Stakeholders including—when
it is established—the ODA. It is our expectation that the
London 2012 Forum, established during London's bid, will also
continue and develop throughout the delivery phase.
23. We have already begun working with the
ALG to ensure open communication with London boroughs, and to
set up a system that will allow elected members and officers from
all London boroughs to stay involved and make a valuable contribution
throughout the life of the project. The five Olympic boroughs
in East London have already established a co-ordinator to work
across the five boroughs, reflecting their specific interests
in the project.
24. London's security arrangements for the
Games are already robust. Policing and security services in London
and the UK are among the most experienced in the world in dealing
with the terrorist threat; this is reflected in the fact that
officers from the Metropolitan Police had a leading role in the
international team responsible for security at the Athens Olympics.
The International Olympic Committee recognises the UK's expertise
in this field, and has expressed its complete confidence in our
ability to make the Games safe and secure.
25. The Olympic Security Committee, chaired
by the Home Secretary, is the best way to co-ordinate all the
police, intelligence and response services that will work together
to make the London Games safe and secure. The Home Office and
the Met Police were both closely involved in the development of
our security plans, as set out in Theme 12 of the Candidate File,
and are committed to close collaboration from the earliest.stages
of the Olympic project, where security considerations will be
incorporated into design work for the Olympic facilities.
Legacy and wider benefits
26. The Olympic Stakeholders are leading
work to identify the best long-term owners and/or managers for
legacy venues, and for the maintenance of the Olympic Park after
the Games. This work is ongoing, and no firm decisions have yet
been made.
27. We remain committed to the "no
white elephants" policy for the Games. No permanent venue
will begin construction until we have agreed a sustainable long-term
business plan for that venue.
28. The Stakeholders—GLA, Government
and British Olympic Association—all have an interest in
a sustainable legacy for British sport and in a broader positive
impact of the Games in London and the UK. But the legacy picture
involves more than just the stakeholders: we will continue the
partnership approach to legacy that characterised discussions
during the period of the bid. As well as sporting bodies, this
will include those organisations and groups involved in housing,
employment and skills, open space and much more.
29. The London Olympics Bill clearly obliges
the Olympic Delivery Authority to put legacy considerations at
the heart of its work. The GLA has the same responsibility when
exercising its new "Olympic power".
October 2005
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