HL Deb 17 July 2003 vol 651 cc968-70

11.15 a.m.

Lord Moynihan asked Her Majesty's Government:

What progress is being made to secure a successful bid to host the 2012 Olympic Games in London.

The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)

My Lords, Barbara Cassani has been selected as the leader for the London bid and is actively recruiting a high quality team. Work is well advanced on the preparation of a development strategy for the Olympics zone in the Lower Lea Valley that will also meet local regeneration aspirations and be of lasting value to the community. Work is also under way on the development of a robust transport solution for the games. Government, the Mayor and the British Olympic Association are fully committed to supporting the London hid team in the preparation of a top-class winning bid.

Lord Moynihan

My Lords, we warmly welcome the Government's strong support for the London bid, which we share. I was pleased to note that the Prime Minister is on record as saying that he will, back the bid to the hilt", which of course means that it is inconceivable that we will lose. So why are the Government, alone among all the competing bids, to preside over cuts in the world-class performance programmes to support our young elite sportsmen and women on whom our hopes of medal success depend? And why, when the Government are introducing a welcome Olympics lottery game, are they considering taxing the proceeds and not reinvesting the tax take into the Olympics bid?

Lord McIntosh of Haringey

My Lords, as to the noble Lord's first point, there are two aspects to encouraging sport. First, there is the aspect of elite sport, which concerns those who will be competing soon. We have allocated £58 million to elite sport in the past financial year. Secondly, and perhaps more importantly in the longer term, there is the money spent on sport in schools and clubs and on coaching and so on. On this aspect we have allocated £1.2 billion for the period 2002–06.

As to funding and lottery money, it is estimated by Ove Arup that the total cost of holding the games would be £3.6 billion, of which £2.5 billion would be met from revenue, with the remainder coming from a funding package from the Government and the Mayor including £1.5 billion. As the funding package amounts to £2.4 billion, it can be seen that there is ample provision for any revenue shortfall.

Lord Faulkner of Worcester

My Lords, does my noble friend agree that the case for the bid would be immeasurably strengthened if Crossrail could be completed by 2012? This would undoubtedly represent an important part of the robust transport solution to which he referred in his Answer. Why is it not possible for the hybrid legislation to be brought forward and introduced in April so that the necessary planning can be undertaken for the line to be up and running by the time the games start?

Lord McIntosh of Haringey

My Lords, the bid is being prepared on the basis that Crossrail will not be available by 2012. Indeed, Transport for London, the Mayor's organisation, has stated that it does not expect it to be available until 2013–14. That is why the bid has to be prepared without Crossrail. However, the Olympics zone in the Lower Lea Valley is served by no fewer than six rail lines, in addition to the motorway-standard part of the A12.

Lord Addington

My Lords, does the Minister agree that the development of grass roots sports will be of absolutely no use to the Olympics bid if those athletes are not prepared properly for international competition? We must make sure that the connection between the two is seamless. Can the Minister assure the House that the Paralympics are seen as a partner in the process and not simply as a tag-on? Even if they are a junior partner, they should be seen to be integrated from the very beginning.

Lord McIntosh of Haringey

My Lords, I entirely agree with the noble Lord as regards his first question. That is why, in my response to the noble Lord, Lord Moynihan, I referred to both elite sports and grass roots sports. As to the Paralympics, the International Olympic Committee sees the Olympics and the Paralympics together. No bid which devalues the Paralympics will have any hope of success, and we recognise that in the way in which we are preparing our bid.

Lord Elton

My Lords, in declaring an interest as a resident in Greater London, may I ask the Minister how much of the cost of staging the Olympics here will fall on the council tax payers of London and how long it will take to be discharged?

Lord McIntosh of Haringey

My Lords, sharing that interest, I understand that the Mayor proposes that there should be an addition to the council tax, which would start only if and when the bid is successful, roughly for a period of 10 years. It would be approximately £20 on band D of the council tax for each of those years.

Lord Burnham

My Lords, if the bid were to be unsuccessful, what would he the cost?

Lord McIntosh of Haringey

My Lords, £17 million.