Select Committee on Scottish Affairs Minutes of Evidence


Memorandum submitted to the Scottish Affairs Committee by the London Organising Committee for the Olympic Games

1.  INTRODUCTION

  1.1  This is a submission by the London Organising Committee for the Olympic Games (LOCOG).

  1.2  LOCOG is responsible for planning, organising and staging the 2012 Olympic Games and Paralympic Games and is the successor of London 2012 Ltd, the organisation which led London's successful bid for the 2012 Olympic Games and Paralympic Games.

  1.3  LOCOG is committed to the delivery of an outstanding Olympic Games and Paralympic Games in London in 2012. This commitment extends to an unprecedented strategy to engage the whole of the United Kingdom in the Games, and to ensuring that, in whatever way possible, we open up the opportunities that hosting the Games bring to all sports, communities, businesses throughout the UK. We believe that the broader representation and involvement of the UK in the Games will not only directly contribute to the Games themselves, but will allow for those benefits to be maximised by all.

2.  DELIVERING THE LONDON 2012 GAMES—ROLES AND RESPONSIBILITIES

  2.1  LOCOG is responsible for planning, organising and staging the 2012 Games. It will be almost entirely privately financed with an operating budget of £1.5 billion at 2004 prices, drawn from a combination of IOC broadcast rights and The Olympic Partner (TOP) programme, tickets sales, and LOCOG sponsors and licensing. LOCOG will specify the requirements for staging the London Games and will be the central point of contact with the IOC.

  2.2  The Olympic Delivery Authority (ODA) will be created by the London Olympics Bill and will be responsible for ensuring delivery of the venues and infrastructure for the Games. The ODA's Olympic specific works will be financed from a public funding package of £2.375 billion at out-turn prices and is separate and distinct from the LOCOG budget.

  2.3  The Olympic Board will comprise the Olympic Minister, the Mayor of London and the Chairmen of the British Olympic Association and LOCOG. The Board will coordinate the work of LOCOG, Government and the ODA.

3.  BACKGROUND

  3.1  It was an early priority for London 2012 to establish a framework to engage the whole of the UK and to deliver the highest levels of public support for the Bid. This needed to be established quickly and with reference to existing structures, without seeking to create a new network from scratch.

  3.2  The Nations and Regions Group (NRG) was implemented by the London 2012 bid team as the best vehicle to achieve this. Charles Allen, vice-chairman of London 2012 and CEO of ITV, agreed to act as Chairman. Scottish representation was sought via a request to the First Minister for nominations to serve on the NRG.

  3.3  The NRG contributed significantly to raising public awareness and support for the bid across the UK. LOCOG has consulted on the future of this group, and it is clear that there is a commitment to see it continue and evolve into a Group that works together to secure the maximum UK-wide benefits related to 2012 such as preparation camps, tourism, and contracting opportunities.

  3.4  The work of the NRG was supported by a wider programme of communications initiatives by London 2012, including media campaigns, visits by London 2012 leadership and ambassadors, the development of education materials for use in schools, and more specific initiatives led by the NRG—the hosting of a UK Opportunities Conference and publication of a brochure highlighting the strength of offer the whole UK could make to the Olympic Family.

  3.5  LOCOG would like to express gratitude for the support and contribution to date of the First Minister; Minister for Tourism, Culture and Sport; the Scottish Executive and delivery agencies, including through the establishing of a dedicated, high-level working group.

4.  BENEFITS/OPPORTUNITIES

  Winning the 2012 Olympic Games and Paralympic Games would provide an unparalleled opportunity to contribute to the UK's sporting, cultural, economic, social and environmental objectives. These benefits and opportunities include:

  4.1  Boosting sport—The Games will encourage the acceleration of the delivery of a new world-class sports infrastructure for the UK. As a direct consequence, four arenas and five swimming pools used during the Games will be relocated to other parts of the UK, and all sports equipment used will be given to sports clubs and charities across the UK. The Games is likely to generate unprecedented levels of interest from business and local authorities across the UK that could open up further channels of funding for sport at all levels, and the lead up to the Games could be used by those involved in sport to inspire a new generation.

  4.2  Business Opportunities—The Sydney experience showed that New South Wales business won the equivalent of £400 million in contracts, of which over £115 million was for regional companies with 55,000 people receiving employment related training. Companies of all sizes and in a huge range of sectors will be able to seek contracts, and those companies that win business will be well placed to bid for future Olympic and other major event contracts. Estimates suggest 7,000 full-time equivalent jobs will be created in the construction industry and provide opportunities for an enhanced training and skills development programme.

  4.3  Tourism—Australia recorded an additional 1.6 million visitors spending over £2 billion between 1997 and 2001 and the Sydney convention and exhibition sector saw a 78% increase in international visitors. Through significant exposure to a global TV audience of 4 billion, the UK tourism industry will receive a significant boost—before, during and after 2012. A Working Group to develop a strategy to make the most of these opportunities will be established by stakeholders working with LOCOG.

  4.4  Preparation Camps—The Australian experience shows that Queensland—1,000 kilometres from Sydney—hosted 179 teams from 48 countries, including Team GB who spent around £1 million. Around 125 teams from 39 countries undertook pre-Games training across New South Wales injecting the equivalent of £26 million into the State's economy. If a similar programme of preparation camps could be delivered they could be significant investment in local communities across the UK. A Working Group to develop a strategy to make the most of these opportunities for the whole of the United Kingdom has been established by LOCOG with other stakeholders.

  4.5  Volunteering—Approximately 70,000 volunteers drawn from across the UK and beyond would be required providing a unique boost both to sport specific, and general, volunteering in the UK. A full Volunteer Strategy is being put in place.

  4.6  Arts, culture and education—The Cultural Programme will begin with Liverpool City of Culture 2008 and will be a major aspect of the Games. A UK-wide Olympic Torch Relay in 2012 is likely to last several months and involve every major city and town in the UK. There will be an educational and youth programme for all of the UK's children in the years leading up to 2012. Initiatives will include an Athlete Ambassador programme for schools and community groups to personify the values for the Olympic ideal; development of a range of educational material based upon Olympic values to support the National Curriculum; a young Ambassador's programme focused on the most deprived areas in the UK to help young people develop language skills and equip participants to act as volunteers.

  4.7  Environmental legacy—The Games would set new standards for sustainable production, consumption and recycling of natural resources that would provide a benchmark for projects throughout the United Kingdom.

5.  INVOLVEMENT OF SCOTLAND IN THE BID

  5.1  Business—Scottish business made a significant contribution to our Bid, with Edinburgh-based company Navy Blue securing the contract to design and produce the Candidate File submitted to the IOC and worth in excess of £700,000. This was one of the biggest contracts placed by London 2012. A further significant contract to produce London 2012 branded material, in particular flags and banners, was secured by another Scottish firm, Hi-Fli. Assistance on public relations, in Scotland as well as other parts of the UK was provided by Pagoda PR on a consultancy basis. This involvement gives Navy Blue, Hi-Fli and Pagoda not just a platform to market themselves internationally, but means that they have direct experience of and insight into the process of bidding for major events, further strengthening their ability to secure further work.

  5.2  Political support—the Bid team received strong support from the main political parties in the UK, and in particular from the First Minister in Scotland, along with the Scottish Executive who provided a strategic lead through the working group established at the First Minister. The working group engaged Scottish agencies including the Executive, sportscotland, Visit Scotland, Event Scotland, Scottish Enterprise and others. Representatives from this group sat on the London 2012 Nations & Regions Group, providing clear links between the Bid and Scotland.

  5.3  Public support—It was critical to be able to demonstrate high levels of support for the Games throughout the UK to the IOC. We were able to do this by showing that at the time of the IOC's own polling, popular support in Scotland was over 70%—a figure higher than that in London at the same time. Scottish agencies assisted the Bid team to generate, coordinate and conduct support activity. Another crucial aspect of this work was the generous endorsement and support we received for the Bid from many Scottish athletes. Shirley Robertson, Chris Hoy and Rhona Martin were amongst many whose backing was vital.

  5.4  Venues—In order to meet with the expectations of the IOC in terms of delivering a compact Games, the London 2012 bid developed a blueprint that, where possible, accommodated as many of the events and related venues as close to the proposed Olympic Park in the East End of London. This is the reason why the opportunity to take events around the rest of the UK proved limited. The exception to this is the association football tournament. The parameters for football meant that we were able to distribute venues across the UK, and we are delighted that Hampden Park, as a world-class venue, will be part of the Games.

6.  NEXT STEPS

  6.1  LOCOG is committed to developing the opportunity the Games present to build interest and participation in sport across the UK. The Nations & Regions Group will meet in its new format for the first time in November 2005 under the chairmanship of Charles Allen. New terms of reference and a project plan will be discussed at the first meeting. Membership will include direct representation from Scotland, along with Wales, Northern Ireland and the English Regions. Scotland will agree its own representative, creating a link from the Scottish Working Group on the Games established at the discretion, ultimately, of the First Minister. LOCOG, through the NRG, will offer a suggested approach to the operation of the Scottish Working Group, however its composition and remit will, appropriately, remain a matter for the Executive and partners in Scotland.

  6.2  The NRG will link into appropriate structures that will lead on the various "themes" emerging, including tourism, business opportunities and preparation camps. There will be direct representation within these structures from both LOCOG and NRG, which will provide co-ordinated, strategic guidance.

  6.3  The Scottish Working Group will appoint its own membership and agree its own plan for ensuring Scotland gains benefit from the Games. LOCOG, through the NRG will provide the coordinated framework for developing these opportunities; however the responsibility for the broader commercial benefits to Scotland will remain dependent on the extent to which Scottish agencies and Scottish companies are prepared to take advantage of them. As outlined above, they would include preparation camps, tourism, Scottish companies winning business, and delivery on volunteering and cultural agendas. However Scottish companies and agencies have already showed that they are ahead of the game by winning work with the Bid.

  6.4  One key area of cooperation will be Glasgow's bid for the Commonwealth Games in 2014. A meeting between the Minister for Tourism, Culture and Sport, Patricia Ferguson MSP and relevant LOCOG personnel has already been set up to discuss how London's bid can be of direct benefit in a range of ways to Glasgow.

5 October 2005





 
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