Examination of Witnesses (Questions 140
- 159)
TUESDAY 4 DECEMBER 2007
LORD COE,
MR PAUL
DEIGHTON, MR
JOHN ARMITT
AND MR
DAVID HIGGINS
Q140 Paul Farrelly:
It is a very simple question. You have got the programme contingency
on top, the 2.7—the 2.2 plus 500.
Mr Higgins: The 2.2 plus the 500
million that is already put in project.
Q141 Paul Farrelly:
Let us put that to one side. Within your budget previously, adding
up for each individual project (and the break down you say will
come in the near future), what is the total amount that you already
had in?
Mr Higgins: That has never been
set out.
Q142 Paul Farrelly:
I am asking you to set it out for us now?
Mr Higgins: It is impossible to
set that out because each project depends on the level of detail
or design. What we can say is that within the 6.1 billion, which
includes the 500 million, there is an adequate project contingency
that just identifies the project costs.
Q143 Paul Farrelly:
I am asking you what that is in total.
Mr Higgins: That will be released,
the detail of that will be released, but it does include the 500
million allocated.
Q144 Paul Farrelly:
You are refusing to tell us this figure now.
Mr Higgins: No, I am saying it
includes the 500 million allocated by the Government.
Q145 Paul Farrelly:
I want the figure now so we can actually get an accurate—
Mr Higgins: I am confused as to
what figure you are talking about.
Q146 Paul Farrelly:
Within your budgets for each individual project there is an individual
contingency already before you lay the programme contingency on
the top?
Mr Higgins: That is right, yes.
Q147 Paul Farrelly:
I am asking you for that first figure.
Mr Higgins: It is at least 500
million.
Q148 Paul Farrelly:
At least 500 million.
Mr Higgins: That is right.
Q149 Paul Farrelly:
That is not giving me more than we already know, because you are
including 500 million out of the programme.
Mr Higgins: That is right.
Q150 Paul Farrelly:
So you are refusing to give the Committee a figure now?
Mr Higgins: What is released to
Parliament is the 500 million.
Q151 Paul Farrelly:
This is Parliament?
Mr Higgins: That is right. As
I said, the Secretary of State will make an announcement within
two weeks to give further details in the budget, but what I can
say is that it leaves this 500 million as allocated.
Q152 Paul Farrelly:
We would like to go away from this committee meeting hearing from
you as witnesses a total figure that we can have in our mind in
this budget for contingency?
Mr Higgins: Which is the 2.2 unallocated
and the 500 million.
Q153 Paul Farrelly:
And what else you have got in there already, which you are refusing
to give us now.
Mr Higgins: No, what I am setting
out is what has been released by the Secretary of State as set
out in the allocation of contingency.
Q154 Paul Farrelly:
Can you break down the 360 million figure for us that has already
been released to you?
Mr Higgins: The details of that
will come out within two weeks.
Q155 Paul Farrelly:
So again you are refusing to do that now?
Mr Higgins: It is an issue for
the Secretary of State to announce that to Parliament.
Q156 Paul Farrelly:
I would suggest it is an issue for you as well in front of the
Select Committee to tell us.
Mr Higgins: The Secretary of State
and the Olympic Board will go and review our overall plans and
then will make an announcement to Parliament.
Q157 Chairman:
So the Secretary of State will be announcing the budget you expect
in two weeks' time.
Mr Higgins: Within the next two
weeks you will get further details.
Q158 Chairman:
Is it possible for you also to publish your projected cash flows,
in other words a schedule of payments as you expect them to be
made over the course of the next five years?
Mr Higgins: Absolutely. We do
publish a corporate plan and we publish a business plan. The corporate
plan covers five years and the business plan covers the year ahead.
Q159 Chairman:
Will that give a precise break down of what cheques you expect
to write and when?
Mr Higgins: It gives the monthly
cash flow; it does not give the individual cheques.
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