PAC report puts Olympics budget over previously estimated value – London Olympics 2012
Conflict has arisen recently between the officials at the Department for Culture, Media and Sport and the ministers in the United Kingdom about the budget of the upcoming London 2012 Olympic Games that are set to take place in the capital of England on July
27.
The dispute between the two parties has come to light after a report was published by the Public Accounts Committee in the week gone by. The report claimed that the Olympic Games budget would not be able to remain within the set amount and could most likely
experience an increase of a total of £1.7billion. In the event that occurs, the total cost of the Olympic budget that is backed by the public sector funding may reach a figure of £11 billion.
This would be more than what was promised by the London Organizing Committee of the Olympic Games and agreed upon by the ministers of the country that would be playing host to the international sporting event for the third time in its history.
Jonathan Stephens, who is the senior civil servant at DCMS, shared his views on the matter of the PAC report in the following manner, “The report claims that only £100million of contingency remains. In fact, as I explained at the hearing without challenge
from the NAO, more than £500 million of unallocated contingency remains. Second, the report claims the Games will cost £11billion. In fact, the public sector funding package remains at £9.3 billion. The end result of the PAC’s report has been to create a false
perception that the Department for Culture, Media and Sport Olympic budget is overspent. This was foreseeable, and is untrue.”
The report has been criticised for needlessly highlighting the prospect of the increased cost of the Olympic Games and creating a sense of unease among the stakeholders of the London 2012 Olympic Games.
The capital of England will see the Olympic Games commence from July 27 and last till August 12. The hosting of the Games this year will make the city of London the first ever in the world to have welcomed the Games thrice.
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