The Mayor’s speech in response to the David Ross report on Olympics funding

18 June 2008

You will have been waiting with bated breath for David Ross’s report which I have circulated this morning to members. I am of course immensely grateful to David and his team.

Like me, he believes that the games will be a huge success and a wonderful thing for this city and this country and he finds much to praise.

He joins the IOC in giving full marks to the ODA for their site preparation and enabling works as well as to the excellent planning and preparatory work being carried out by LOCOG.

Anybody who has been down to the site will confirm the fantastic speed with which the programme is being carried out.

The stadium is two months ahead of schedule and the lift shaft of the new John Lewis shop can already be seen.

David Ross does enter some reservations. He finds that security planning has not kept pace and that it is vital for us to catch up if we are not to have cost increases and disruption and I will be discussing this urgently with ministers and with the Commissioner.

It is clear also that on cost forecasts and funding we need to have greater transparency and openness.

The ODA’s final cost estimates already anticipate that at least a billion pounds of the contingency provided within the budget will be spent. That has been clear since at least last November and should have been made clear to the public much earlier.

His report makes clear that the procurement of the big ticket items is now so far advanced that any big changes or respecfications would risk delay and therefore increases in cost but I am determined to apply sustained pressure on the ODA and through them on their consultants and contractors to contain cost pressures and to reduce as far as possible further calls on the contingency and Londoners will want to know that on David’s recommendation.

I am making clear to the government that London's Ł300m additional contribution to the funding of the games - which was agreed last year - is supporting programme contingency and if some of the contingency is not required, London's contribution should be reduced accordingly.

And I want to reaffirm this morning that Londoners will not a penny more council tax to pay for the Games – no matter what the circumstances.

David’s review confirms that the credit crunch is affecting the plans for the village and he thinks that whatever happens some additional public sector funding is likely to be required.

If that is the case we should remember that this village offers the hope of new homes for many thousands of people.

We cannot put that at risk by reducing the quality of these homes and indeed I want to see this village as a model for new housing sought after by people of all incomes a mixed community with excellent schools and facilities with as much shared ownership as possible to give people a ladder to home ownership and I am committed to making that vision a reality and ensuring that we get the best possible deal and finally it is David Ross’s view, and mine, that we must now get a move on and agree a clear and defined vision for the future of the Olympic park after the Games including the future of the stadium, the aquatic centre, the media and broadcast centre.

I agree with him that we need a full and open examination of all options and that we should now establish a separate vehicle responsible for delivering a legacy for London.

So I have asked him to work with me to establish rapidly a Legacy Board of Advisers to advise me exclusively on the Olympic Park legacy after 2012.

As David Ross says, “Whether the billions of public money now being invested in the Olympic projects are seen as value for money stands or falls on the legacy that London as a city inherits” and I think you’ll agree with me that the right moment to be asking those questions is now and not in four years’ time.

Boris Johnson
Mayor of London