London Olympics 'need iron hand'
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http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/6284772.stm Version 0 of 1. The London Olympics project must be managed with an "iron hand" if it is to meet its deadline, MPs have warned. Concerns that "strong arrangements" for keeping track of progress, and limiting risk are not yet in place, were voiced by the public accounts committee. MPs said the Games' cost had at first been underestimated and private sector funding "seriously overestimated". Olympics Minister Tessa Jowell said preparations were "on track" and she would keep an "iron grip" on finances. The committee said progress had been made "on a number of areas" particularly on the crucial project to relocate power lines underground on the Olympic Park site. And the Olympic Delivery Authority had appointed a "delivery partner" to make sure the Games came in on time and on budget, it noted. Immovable deadline But it said "strong progress and risk management arrangements are essential, but are not yet in place". The report pointed out a "plethora of bodies" were involved and said the Department of Culture, Media and Sport needed an agreed plan "of what needs to be decided, when and by whom". And it warned that the "immovable deadline" of 27 July 2012, left organisers vulnerable - as they may end up having to pay contractors more, or accepting lower standards, to get the job finished. It is worrying...that strong arrangements for monitoring progress and managing risk are so far not in place Edward LeighCommittee chairman It recommended "incentive arrangements" with contractors to deliver quickly, to cost and to the right quality. The report also criticised the omission of tax, contingency fund and security from the original estimates for the budget - which stood at £2.4bn in 2005 but is now put at £9.35bn. A further report is expected from the National Audit Office on the budget. The government had been "far too optimistic" about private sector funding, says the committee's Tory chairman Edward Leigh. 2012 legacy The committee also criticised a "lack of clarity" about how five venues will be used after the Games, saying plans should be finalised. It is a major concern that proper monitoring and risk management are still not in place Don Foster Mr Leigh said: "If the London Olympic and Paralympic Games are to be the great success we all want them to be, then the risks to delivery will have to be managed with an iron hand. "The Department for Culture, Media and Sport is ultimately responsible for coordinating the array of bodies involved. It is worrying, therefore, that strong arrangements for monitoring progress and managing risk are so far not in place. " For the Lib Dems, Don Foster said: "This report highlights a number of serious problems, such as the failure by the government to get its figures right to start with. He added: "It is a major concern that proper monitoring and risk management are still not in place." Preparations 'on track' But Olympics Minister Tessa Jowell said "much progress" had been made since the committee's inquiry, including a re-appraisal of costs and an outside expert appointed to head up the Olympic Executive with "decades of experience in controlling costs". In June the chairman of the International Olympic Committee praised the 2012 preparations as "on time and on track" and said they would prove to be a model for future host cities. Ms Jowell added: "I will continue to keep an iron grip on the budget and will not hesitate to intervene to keep costs down." She added organisers had put in place "the most rigorous procedures" and asked the National Audit Office to help monitor costs. |