§ Lord Jopling
asked Her Majesty's Government:
What authority the London Development Agency would need to provide the additional £250 million to meet the shortfall in the £2.375 billion required to stage the 2012 Olympic Games in the event of a successful bid; and what would happen if the agency declined to contribute the supplement. [HL2307]27WA
§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)
The London Development Agency (LDA) funding is one of a number of potential tranches which would go to make up the £2.375 billion public funding package if required. The memorandum of understanding between the Government and the Mayor of London, presented to Parliament in June 2003 as Command Paper CM 5867, states that, "Should the shortfall between Olympic costs and revenues exceed £1.825 billion … up to £250 million from the LDA would be made available in keeping with their corporate plan". The LDA would not need any additional authority if, as is expected, its contribution were in accordance with its existing widely drawn economic and regeneration powers. If the agency declined to contribute any supplement that might be necessary, this would need to be addressed at that time. The Mayor of London does, however, have powers of direction and the Government are able to attach conditions to their annual grant to the LDA.