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I should like to spend a few minutes on parts of the legacy envisaged for the devolved Administrations, the nine English regions in general and Wales in particular, on this glorious St David’s Day—although it will disappoint the noble Baroness, Lady Hamwee, that someone is here to talk about it. I remind your Lordships that outside the core athletic activities there is also a cultural Olympiad, which commences at the closing ceremony in August 2008 in Beijing. It is interesting to note that in the history of the modern Olympiad up till 1948, which was the last time when the Games were staged in London, Olympic medals were awarded for sculpture, music, literature and art. This cultural Olympiad will extend for four years.
For successful delivery of the vision of London's bid, it is vital that the core aims of celebration, welcoming the world to our shores and the involvement and inspiration of young people are centre stage. It is understood that no specific funding will be available for the cultural Olympiad and that a large part of the programme will probably be delivered by existing organisations and networks. Some funds may be made available through the Legacy Trust UK, which will be established next year, and could be funded to the tune of £40 million, including £34 million from the National Lottery and £6 million from the Exchequer. That is to be spent over the years up to and including 2012. However, I trust that the Government will heed the words of deep concern expressed by Sir Clive Booth in
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It is essential that nationwide activities are complementary and co-ordinated through the mechanism of the Nations and Regions Group. In Wales the culture group is discussing numerous options, which include securing a short but high-level Welsh presence in the UK’s presentation at the Beijing closing ceremony; seeking to establish an Olympic link to the Artes Mundi festival in 2012; the creating of an opening ceremony for the Olympic football tournament group which is to be staged in Cardiff at the Millennium stadium; featuring the Olympic theme in the Urdd, National and Llangollen International Eisteddfodau; establishing an international arts festival by 2009 to provide an opportunity of leverage for that part of the 2009 Ashes series taking part in south Wales and the all-important Ryder Cup in 2010; and offering, through LOCOG, the opportunity to host an Olympic youth camp in Wales.
As noble Lords can see, the menu is extensive, and I am sure that similar thinking and activity is gathering momentum through other English regions and devolved Administrations. However, there lurks a cynicism about LOCOG's ability to ensure that the cultural Olympiad is not simply a London programme and whether there will eventually be an ability to maintain a commitment to the programme when resources are inevitably drained as pressures escalate. As the cultural programme in Great Britain will rely on a prosperous arts landscape, any cuts in this sector’s funding over the next four years must significantly reduce the ability of that sector to deliver a unique and outstanding cultural Olympiad.
In respect of the core sporting activities and related programmes, it is encouraging to know that the majority of structures being created in the London area will have sustainable use. As important for the legacy, if not more so, are the softer priorities such as tourism, skills and education, volunteering and sports development for young people. Businesses will need to respond and to develop proactively—to develop, adapt and innovate—to meet the opportunity that the event will present. It is important, specifically, that procurement skills be addressed as a matter of priority. Nationally, SMEs must be encouraged and actively supported through existing mechanisms to up their game and be proactive in getting involved in the tendering process. There are, and will be, significant opportunities for tier 1 and tier 2 suppliers.
Volunteering was recognised as one of the most successful aspects of the 2000 Sydney Games; volunteers gave a warm welcome, displaying good cheer and impressive language skills. In the immediate term, development of a pre-volunteer programme—a concept successfully used in the Manchester Commonwealth Games 2002—could be pursued. It consisted of basic-level skills training, targeted at people in communities with high levels of unemployment or economic inactivity. It is also important to take advantage of the interest that has already been stated by the people in this country to ensure the broadest participation.
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It is predicted that tourism will be boosted by some £2 billion, some 40 per cent of which could well go outside London. This is supported by experiences in Barcelona and Sydney. Again, that will happen only if the regions of the devolved Administrations grasp the opportunity now.
My consistent view is that nothing will come to the regions or to the devolved Administrations unless there is substantial proactivity. An official of the 1992 Barcelona Games organising committee recently said:
“I recommend that the lesson for Wales is that you should be proactive, autonomous and as quick to take advantage of opportunities as possible and not simply ask others for resources and for help. It is necessary to establish a realistic and early commitment”.
Another person said that Barcelona was neglected for most of the 20th century and had the chance to invest in six years what would otherwise have taken 50 years to achieve.
Finally, I quote, with permission, from the former premier of New South Wales, the honourable Bob Carr, whom I recently consulted. He is a good friend of Britain and of old Wales. A few weeks after the Games in September 2000 had ended, he wrote:
“It was a new age for Australia, a new way of looking at ourselves and celebrating our unique, diverse, enriching, common purpose. We were, I felt, the happiest people in the world’s most favoured nation at the best time in our history”.
Let us see if we can do the same.
1.23 pm
Lord Addington: My Lords, in trying to sum up a debate such as this, various things keep recurring. Although everybody thinks that the Olympics are a wonderful opportunity—the noble Baroness, Lady Valentine, must be congratulated on giving us the chance to say it—there are pitfalls of expectation surrounding the event. Only my noble friends have actually said this, so let us get it out of the way. Unless there is a degree of coherence about the budget, which requires the involvement of everybody in government, in both Westminster and Whitehall, we could be hanging an albatross around the neck of the Games. We have to be coherent, because if everything is going well, the press have nothing to write about. We have to tell the truth and push it out properly; we must let people know exactly what is going on.
My noble friend Lady Hamwee, not for the first time, encapsulated the argument within government. With a 60 per cent contingency, any contractor worth his salt will say, “I’ll have some of that, if not all of it”. We would all do it if we knew that that budget was available—at least we would try. So we must get some clarity.
When the announcement was made, it was a moment of pure joy that will stay with me for a long time. Even at my advancing age, I jumped in the air, punched the ceiling and cried “Yes!”. True, I wish it had been a few years earlier so that when I landed, my knees did not creak, but the feeling of enthusiasm that only sport can bring was there. Only in sport is that idea of being all together and the exultation in someone else’s effort and triumph.
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We really must support this. That is why it is worth having these arguments and making sure we establish a degree of coherence. If we do not, we will not get there. We must encourage people to get involved. The social benefit that will result and of people being enthusiastic about sport is a huge, positive thing. It gives us a sense of identity and brings us together. That happens in all sports. Not only are we taking part in this, we are creating it. That is a benefit.
Let me give some free advice which can be cheaply ignored. If the Prime Minister wants a legacy, let him look to the Olympics. A successful Olympics will be a positive legacy that nobody will begrudge him. The first thing the Government must do, with help from all the political parties, is establish a degree of coherence about what we must achieve and the framework for it. The one thing that could spoil the Games for the enthusiastic sportsman is the idea that we might squeeze out those benefits by taking all the funding for the event and not leaving enough for the legacy. We will not get the regeneration that is required to turn this enthusiasm into participation in local sports clubs. We will not get people deciding, “I’ll try that sport”. Increasing sports participation will probably happen through the minority rather than the mainstream sports. People will say, “I’ve seen that and I’ll try it”, and, “That looks like a sport I’d like; I’ll find out how it’s done”. This is one of the great educational aspects of any Games. People see something done really well and think, “I’d like to try that”. Olympic success can do that as well as the educational aspect.
Can the Government confirm that there is a certain point beyond which they will not go in drawing in the budget to the Olympic centre? The sporting legacy for the country could very easily be damaged. Indeed, there is already a fear that that will happen, reflected in the briefing we have received. Can the Government take this opportunity to say that we will not allow all the football pitches in south-east England, for example, to be neglected for two years to make sure that the Olympic budget gets everything, and will they repeat it often? They must state that there is a limit and that we will make sure that there is something to pass on. The Government have to ensure that their finances, as well as the finances of the Olympic bid, are well organised. I know there is a line beyond which the Government do not have direct authority, but they are the people who can do it if anybody can; they need to make sure that this is protected. If they do not, a lot of what has been debated here will not transpire, and we will not get the benefits.
With regard to the health benefits that will flow from the Olympics—I thank the noble Lord, Lord Crisp, for referring to a point I raised earlier about sports medicine—the direct aesthetic and health-related benefits of being fit will be a bonus. Taking account of the stories in the press at the moment about zero-size models and super-heavyweight 10 year-olds, this is a point at which we can say that there is a way of giving a positive example of what you can do. In their whole thinking on this topic, the Government must address how the cultural themes, and everything else that has gone behind this, can be worked in. The fact remains that the sporting idea at its centre must be protected and preserved.
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I come to one of the more difficult points that I will raise in the debate about the Olympics and sport generally. It is a criticism, I am afraid, of the Paralympic movement. Many of us on these Benches would see this as an odd thing to start with—especially for somebody who holds the brief for both sports and disability, as I do. I am not against the Paralympics in any way, but there is a major problem at the moment. Those who have a learning disability are no longer included. This is the result of probably one of the most heinous bits of cheating, and of breaking the Olympic spirit, that has ever occurred. The competition in the Paralympics is to be the best inside your own field, where you have the idea of competition and a level playing field. In 2000, a group of Spanish athletes infiltrated the Spanish learning disability basketball team, cheated, and got the gold medal. They damaged the spirit of the Olympics. In my opinion, this is as bad as any drug cheating that has taken place. Indeed, it is possibly worse. By not getting these groups back in, however, you punish the athletes who were not cheating, the people who have only that opportunity to compete at this level. You also remove a whole stream of funding and competition opportunities on the way up.
I do not know whether the Minister had warning that I intended to raise this subject. Does the noble Lord have any idea about what the Government are going to do? How will this be taken forward to the relevant bodies? This decision also takes in those with Down’s syndrome. You can check those with Down’s syndrome very easily. I have a long-standing association with the UK Sports Association for People with Learning Disability. If you meet many of the athletes involved, you do not realise that they have a problem until you have spoken to them for a certain period of time. It is usually physically apparent for those who have Down’s syndrome—you can chromosomally test for this, I believe.
Why are we not encouraging this group back in? I hate to have to leave on this one point, but the Olympics are for everyone. Can the Government please give us an assurance that they will address this matter?
1.33 pm
Lord Howard of Rising: My Lords, I join in congratulating the noble Baroness, Lady Valentine, on securing this debate. As commented, it is timely following the recent flurry of press activity: yesterday’s Evening Standard, and papers last weekend. I am sure the comparison made with the ill fated Millennium Dome, in the Sunday Telegraph, has made many of your Lordships shudder, though not, perhaps, as much as the comments on the Dome made by my noble friend Lord James of Blackheath.
Before continuing, I declare an interest as chairman of the National Playing Fields Association. As your Lordships have highlighted today, the legacy planning for the Olympic and Paralympic Games was more central to our bid than it has been to any previous host city. The Olympic Delivery Agency has gone as far as to suggest that this was,
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The Olympics were won with a bipartisan approach and the Bill discussed last Session had cross-party support. I am sure all in this House would like the 2012 Games to secure a lasting legacy of economic and social benefit, not just for east London, but for the UK as a whole. The question is: will they?
Today’s debate has picked up on four key issues, which are considered the backbone of the 2012 Games legacy: the regeneration of east London; the provision of permanent venues for future use; an increased participation in sport, particularly at school and community level; and a boost to the economy, predominantly via tourism, as mentioned by the noble Lord, Lord Lee of Trafford.
There are positive legacy aspects. The cost-benefit study by Arup shows that, as a direct result of hosting an Olympic Games, there are examples of quantifiable benefits in terms of additional tourism. The job creation aspect of the development, production and regeneration is also very clear.
However, there are worrying aspects. Skills Active has warned that we should not presume that holding the Games will naturally inspire inactive people to change their ways. Indeed, the Central Council of Physical Recreation does not believe that there is any evidence that previous Olympic Games have instilled a long-term legacy of participation; it is a view backed up by other research. The Select Committee on Culture, Media and Sport has expressed concern about the struggle permanent venues may have to maintain commercial success after the Games. The details of the plan to deliver the commercial and residential future development envisaged for the Olympic Park, post-Games, are yet to be finalised.
I understand that the Government’s response to the report of the Select Committee on Culture, Media and Sport is due on 26 March. In advance of that, do Her Majesty’s Government intend to publish a plan, as recommended by the Select Committee, on how they hope to achieve a significant increase in sport and sporting activities in Great Britain at community and grassroots level? The benefits of such an increase in sporting activities have been eloquently expressed by the noble Baroness, Lady Valentine, and the noble Lords, Lord Newby and Lord Addington.
The Chancellor of the Exchequer has made statements in the press about increasing the number of hours of sport that will be available for schoolchildren. It is not clear how this will be achieved. Are Her Majesty’s Government going to comment on this, and indeed on any of the other recommendations?
Funding of the Olympic project has significant ramifications, to put it mildly, for all areas of the potential legacy. Some of your Lordships have spoken on this. In the words of my honourable friend in another place, Hugo Swire, it is a “gross incompetence” on the Government’s part that they failed to include in the initial estimates potential inflation in building costs, VAT, or a realistic contingency fund—let alone the as yet unconfirmed security costs. Are there any other surprises, such as decontamination costs, still to come?
The original budget—which Ministers assured this House and the other place on numerous occasions was robust—was generally supported. But only 19 months
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We all know stories of the building work over-running on both budget and deadlines. What chance is there of being able to avoid this type of problem when there is such a lack of clarity in the first place? I am sure that the Minister will have been grateful and will have welcomed the fine advice of the noble Lord, Lord James—given at no charge. The ever burgeoning bill, coupled with the Secretary of State's failure to make a convincing case that the management exists to ensure that money is put to good use and the silence of the Chancellor of the Exchequer, is jeopardising the project. The London 2012 chairman, the noble Lord, Lord Coe, and chief executive, Paul Deighton, have both highlighted that this increasing uncertainty is making it difficult for them to raise sponsorship from companies to pay for that part of the Games which is to be funded by the private sector.
Today there have been calls for caution regarding the possible serious consequences for the charitable and voluntary sector by any further diversion of funds from the lottery's good causes to the Olympic infrastructure. Even before any further increases—which, after reading the recent press, we are so nervously anticipating—there is a brake on the development of any new programmes for the immediate future. There will also be significant shortfalls for current published programmes. It is ironic that one of these, lottery funding to sport, was reduced from £397 million to £264 million last year. Can the Minister please assure the House that he will look elsewhere for extra funds and that there will be no more demands on the lottery? If there were, it would have a serious effect on the charities and organisations that the lottery was set up to assist.
We on these Benches believe that if this project is to be a success and encourage the legacy which we all support, there must be proper management of the project so that budgets, cost projections and timetables are met. The Secretary of State agreed the original budget and must now deliver the goods. That is what needs to be done if there is to be a lasting legacy of economic and social benefit.
1.43 pm
Lord Davies of Oldham: My Lords, I am grateful to all noble Lords who have spoken in this debate and especially for the constructive tone that has been developed in most cases. I particularly appreciate the success of the noble Baroness, Lady Valentine, in tabling the debate and thank her for her opening contribution, which I think set the tone for the debate.
Of course there are anxieties about the Olympics and all sorts of questions which the Government cannot resolve at this early stage in the development of the project. However, we are making substantial progress. I am grateful to the noble Lord, Lord Howard, for indicating that the bid and subsequent developments on the Bill enjoyed bipartisan support—in fact, support
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Perhaps I may make the obvious point on costs. Of course costs are an important dimension of the Olympics; but the Sydney Olympics, which received considerable praise for how the Games were conducted and for their legacy, did not produce a budget for the Games until two years before they took place. We are under some onslaught from the opposition Benches because we do not have a full budget five years before the Games, despite the fact that the International Olympic Committee has recognised the considerable progress that we have already made. The extent of the progress made will be recognised—I am very grateful to my noble friend Lady Morgan of Huyton, who can comment authoritatively on these matters in view of her participation with the authority—although the site that has been chosen and is being developed and cleared is a monumentally difficult one to address. But that is the strength of the legacy. Into one of the most difficult areas of east London are going the substantial resources necessary to create a significant legacy indeed.
So although I hear what the noble Lord, Lord Howard, says, I say to him that a range of wholly speculative figures have been cited by the media in the past few months and claimed to be the cost of the Games. In fact, one expects one or two newspapers to lob another several hundred thousand pounds almost every week on to the cost they have identified. We are not in a position at this stage to confirm the cost of the Games. A range of speculative figures are being bandied about.
We recognise the importance of getting a budget as soon as we can. Discussions are continuing within government on the cost issues, including wider security, tax and contingency provision. We will make an announcement in due course once these discussions have been concluded. I think that noble Lords opposite ought to restrain their current onslaught against a background where our position on the Games is relatively well advanced in comparison with other hugely successful Games.
I assure the noble Lord, Lord James, that lessons have been learnt from the Dome and developments of that time. He reinforced those lessons today and his speech will be noted with the greatest care. He will recognise that some of the mistakes made on the Dome were previously appreciated and acknowledged. That is leading to a very different approach by government to the Olympic Games.
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