Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by the Department for Culture, Media and Sport

Question 67 (Mr Richard Bacon): Revisionary interest on land purchased by the LDA

  The London Development Agency (LDA) have reviewed the transactions that have facilitated the land assembly of the Olympic Park from the point of view of reversionary interests, which might require additional payments to be made out of capital receipts received.

  Two transactions, which both pre-date London winning the bid, have been identified. The first relates to land which has a potential overage payment due on sales of land up to October 2007. This provision has now expired. The second relates to a small plot which has potential for an overage payment but this will expire on July 2010 (ie: before any disposal of the land).

  On the basis of this, I can confirm that there are no "reversionary" interests in relation to land purchased by the LDA in the Olympic Park, that would bear on the capital receipts from land sales.

Questions 77-79 (Mr Richard Bacon): Costing of commitments in the bid book

  The commitments that were made in the candidate file submitted to the IOC in 2004 will be delivered under the four Olympic programme objectives (and their sub-objectives) that were developed and announced in 2006. Beneath those objectives, more specific and up-to-date plans have now been developed, and budgeted for, by each of the Olympic delivery bodies. It is therefore not possible, three years on, to provide a summary of costs directly against the original, relatively broad formulation of commitments in the bid.

  Costs attached to delivery of the first two Olympic objectives—building and staging the Games—are contained in:

    —  The funding package of £9.325 billion that was announced to Parliament in March 2007. The Minister for the Olympics will be providing a progress up-date on the ODA baseline budget, which falls within this package, in a statement to Parliament on the 10 December; and

    —  LOCOG's £2 billion budget for staging the Games will be raised from private sector sources including sponsorship, broadcasting rights and selling merchandise, with the exception of £66 million contribution from the Government towards the staging of the Paralympic Games,

  The other two Olympic objectives relate to the legacy of the Games—for London and the UK—and for sport, and these have been taken into account in the Comprehensive Spending Review.

  In some cases, legacy commitments or staging requirements are matters of Government policy rather than direct additional cost—for example the measures we have taken to protect the Olympics against ambush marketing. Any significant policy change will be accompanied by the necessary consultation and impact assessment (as was the case for the 2006 London Olympics and Paralympics Act).

  Early next year, the Government will publish a Legacy Action Plan that will set out in more detail how legacy commitments will be delivered and how we will measure our progress.

Question 102 (Mr Ian Davidson): Training and apprenticeships

  Out of a workforce of 1,715 (end of October 2007), 23 were recorded as being trainees or apprentices ie 1.3% of the total workforce (there is no further information on training programmes or specific apprenticeships).

  The ODA in conjunction with its partners, the Learning and Skills Council, Construction Skills, and the London Development Agency, is currently developing additional training, apprenticeships and measures to increase participation in the industry for Londoners. As a minimum the ODA will endeavour to achieve 2,000 trainee, apprenticeship and work placements over the period of the development.

  Older workers or those Londoners wishing to enter the industry will be supported through a combination of programme level and specific measures targeted at recruitment, pre-employment training and post placement support.

Questions 105-106 (Mr Davidson): Lottery funds in Scotland, Wales and Northern Ireland

  The below table shows the Lottery contributions by Scotland, Wales and Northern Ireland to the proposed transfer of funds from the National Lottery Distribution Fund to the Olympic Lottery Distribution Fund to fund the 2012 Games. These figures include their contribution to the £410 million included in the original public sector funding package, as well as the additional £675 million announced on 15 March 2007 (detailed in the shaded columns). The table also sets out how much Scotland, Wales and Northern Ireland are still likely to receive in income from the Lottery between 2008-09 and 2012-13, the period of the proposed Olympic transfer.
Total proposed contribution
(£ Million)1
Proposed contribution
to £410 million element of transfer
Proposed contribution
to £675 million
element of transfer
Total projected Lottery income between 2008-09
and 2012-13
(£ Million)
based on current Lottery income projections2
Scotland114.4 42.4 72518.1
Wales 65 24.3 40.7291.4
Northern Ireland 42.1 15.626.5186
Notes:

It is not possible to say how much of the UK Film Council's total contribution of £21.8 million to the Olympic transfer might have been awarded to projects in Scotland, Wales and Northern Ireland. Also, the projected Lottery income figures exclude UK Sport and the UK Film Council as it is not possible to estimate how much might be awarded in Scotland, Wales and Northern Ireland by those bodies.

1 The figures in this column also include the likely contributions from the relevant UK-wide distributors, based on the percentages traditionally used to split funding between the countries of the UK (but please note that this is entirely for the bodies themselves to decide)

2 The figures in this column also include the proportion of funds which the relevant UK-wide distributors might be expected to award in Scotland, Wales & Northern Ireland based on the percentages traditionally used by those distributors to split funding between the countries of the UK.





 
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