§ Sir Reginald Eyreasked the Secretary of State for the Environment what provision is to be made for the financial security of the 1992 Olympics in the event of Birmingham receiving the nomination to host the games.
§ Mr. Kenneth BakerThe Birmingham Olympic Council, of which the right hon. Member for Birmingham, Small Heath (Mr. Howell) is president, has declared its intention that the Games should be entirely privately financed. I welcome this approach. Nevertheless, the Government recognise that if preparations for the Games were well advanced and they were subsequently to be cancelled as a result of circumstances entirely beyond Birmingham's control, the city might be left with a large financial liability. The Government therefore propose to seek legislation providing for an indemnity to the city council in such circumstances. The indemnity would only apply to net losses in excess of £100 million incurred as a direct consequence of its preparations to stage the Games. The Government will expect the organising committee and the city of Birmingham to use their best endeavours to minimise the risk of loss and the potential call on public funds.
If Birmingham receives the nomination to host the 1992 Olympics I shall seek an early opportunity to introduce the relevant legislation for the indemnity.
I have written today to the leader of Birmingham city council to this effect and I have placed a copy of my letter in the Library.