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Mayor denies Olympic cost 'mess' Mayor denies Olympic cost 'mess'
(40 minutes later)
Ken Livingstone has denied the 2012 Olympics finances are in chaos - as he contradicted what Culture Secretary Tessa Jowell told MPs on Tuesday.Ken Livingstone has denied the 2012 Olympics finances are in chaos - as he contradicted what Culture Secretary Tessa Jowell told MPs on Tuesday.
Ms Jowell said the cost of the Olympic Park had risen from £2.4bn to £3.3bn, blaming inflation and the decision to spend £400m on a "delivery partner".Ms Jowell said the cost of the Olympic Park had risen from £2.4bn to £3.3bn, blaming inflation and the decision to spend £400m on a "delivery partner".
But London's Mayor insisted the £2.4bn figure stood, saying any increase was due to other regeneration work.But London's Mayor insisted the £2.4bn figure stood, saying any increase was due to other regeneration work.
"Nothing is a mess, everything is going exactly to plan," he told the BBC. "Nothing is a mess, everything is going exactly according to plan," he said.
He also said the £400m Ms Jowell said would be spent on a delivery partner - a private firm to bring the Games in on time and on budget - would actually be £250m. He also told the BBC the £400m Ms Jowell said would be spent on a delivery partner - a private firm to bring the Games in on time and on budget - would actually be £250m.
Steel pricesSteel prices
Ms Jowell was grilled by MPs on Tuesday after speculation that the total cost of the Olympics was soaring as high as £8bn.Ms Jowell was grilled by MPs on Tuesday after speculation that the total cost of the Olympics was soaring as high as £8bn.
She refused to talk about the overall costs, restricting her comments to the £900m added on to the £2.4bn costs of the Olympic Park itself.She refused to talk about the overall costs, restricting her comments to the £900m added on to the £2.4bn costs of the Olympic Park itself.
She said the rise was the result of a sharp rise in the price of steel, a decision to revise transport costs to take into account the fact there will be inflation in the years to 2012, and a £400m bill for "delivery partner" CLM.She said the rise was the result of a sharp rise in the price of steel, a decision to revise transport costs to take into account the fact there will be inflation in the years to 2012, and a £400m bill for "delivery partner" CLM.
The main extra cost is in creating the long-term legacy afterwards and that will be profit-making Ken Livingstone These games will make a profit Ken Livingstone href="/1/hi/uk_politics/6165980.stm" class="">Q&A: Olympic costs
Ms Jowell was clear to say that these estimates did not include additional bills for regeneration or the cost of running the Games.Ms Jowell was clear to say that these estimates did not include additional bills for regeneration or the cost of running the Games.
Mr Livingstone, asked if the financial plans were now in chaos, told BBC Radio 4's Today that most of the cost increase was attributable to new plans to put an extra 35,000 to 40,000 homes on the site, after 2012. Mr Livingstone, asked if the financial plans were now in chaos, told BBC Radio 4's Today that most of the cost increase was attributable to new plans to put an extra 35,000 homes on the site, after 2012.
He said they wanted to put in all the infrastructure now, so it was not necessary to dig up the site all over again, in the years after the Olympics.He said they wanted to put in all the infrastructure now, so it was not necessary to dig up the site all over again, in the years after the Olympics.
And he said much of the money would be recouped, when it was eventually sold off.And he said much of the money would be recouped, when it was eventually sold off.
"These games will make a profit, we have taken the most run-down and polluted place in southern England and, on the back of the games, we are going to regenerate it - it will be a vibrant new area.""These games will make a profit, we have taken the most run-down and polluted place in southern England and, on the back of the games, we are going to regenerate it - it will be a vibrant new area."
He added: "The main extra cost is in creating the long-term legacy afterwards and that will be profit-making." Contingency row
Another Wembley He dismissed Olympic Delivery Authority (ODA) chairman Jack Lemley's claim he resigned because the project was running late and bedevilled by political disagreements.
He also denied reports he and Ms Jowell had drawn up the original £2.375bn figure in 45 minutes, saying that their offices had worked on the details for months. Mr Livingstone said the American had had major surgery, after which it became clear "it was time for him to go". Mr Lemley denies any such claim.
Ms Jowell had indicated, during the session facing MPs, that earlier agreements had been for any overspends to be met by a combination of London council tax payers and lottery cash. But Mr Livingstone did admit he was at odds with the Treasury, over its demands for a 60% contingency fund - Mr Livingstone thinks it should be nearer 20%.
But Mr Livingstone said he was "detemined" that there would be no increase in the £20 a year for 25 years each London council tax payer will pay. Mr Livingstone said much of the cost would be recouped
And he said that paying a "delivery partner" was important if they were to avoid "another Wembley"- the £757m project currently running a year over schedule. He said he believed that such a large contingency fund would just encourage people to overspend.
'Get a grip' Ms Jowell had indicated, during her session facing MPs, that earlier agreements had been for any overspends to be met by a combination of London council tax payers and lottery cash.
"We've cut out all the people who have got a track record in the past of screwing these things up," he told BBC Radio 4's Today programme. But Mr Livingstone said he was "determined" that there would be no increase in the £20 a year for 25 years each London council tax payer will pay.
"We've brought it on to the private sector. Now you do have to pay them. But it does mean that we can expect that the games will be delivered on time and to budget." And he said that paying a "delivery partner" was important if they were to avoid another Wembley - the £757m project currently running a year over schedule.
"We've brought it on to the private sector. Now you do have to pay them. But it does mean that we can expect that the games will be delivered on time and to budget," he told the BBC.
Meanwhile ODA chief executive David Higgins will say in a speech that critics should remember the regeneration being triggered in east London when looking at the cost of the games.
The Lib Dems have urged the government to "get a grip" on costs and have said any additional regeneration work should be privately funded.The Lib Dems have urged the government to "get a grip" on costs and have said any additional regeneration work should be privately funded.
The Conservatives said the figures are still too vague and the £900m increase was "just a starting point".The Conservatives said the figures are still too vague and the £900m increase was "just a starting point".
The ODA and the government are reviewing the original budget and are expected to announce a revised financial plan in the New Year.The ODA and the government are reviewing the original budget and are expected to announce a revised financial plan in the New Year.