Quarterly economic report (UK journalists) - June 2012


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This presentation was given to UK journalists by Olympics minister Hugh Robertson, Dennis Hone of the Olympic Delivery Authority and David Goldstone, director of finance at the Government Olympic Executive, on June 13, 2012

It explains the background behind the publication of the government's final quarterly economic report on London 2012.

Published in: News & Politics, Business
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  • Quarterly economic report (UK journalists) - June 2012

    1. 1. GOE QUARTERLY REPORT– June 2012Jeremy Hunt MPSecretary of State for Culture, Olympics, Media & SportHugh Robertson MPMinister for Sport & OlympicsDennis HoneChief Executive, Olympic Delivery AuthorityDavid GoldstoneDirector of Finance, Government Olympic Executive13 June 2012 UNCLASSIFIED
    2. 2. JUNE 201244 days to Olympic Games OpeningCeremony Construction virtually complete £476m of uncommitted contingency Successful test events A great Jubilee weekend Country embracing Torch RelayIn a strong position but no complacency aschallenges remain UNCLASSIFIED
    3. 3. OVERALL 2012 BUDGET POSITION (All figures to nearest £m) 31 Dec 31 Mar 31 May 2011 (£m) 2012 (£m) 2012 (£m)ODA programme 102 88 88contingencyPSFP contingency 425 403 388and other savingsUncommitted 527 491 476contingency UNCLASSIFIED
    4. 4. OVERALL 2012 BUDGET POSITION (All figures to nearest £m)PSFP programme 31 Dec 2011 31 May 2012 Variance from 31 Dec 2011 to forecast (£m) forecast (£m) 31 May 2012 forecast (£m)ODA, incl. 6,777 6,761 -16 ODA programme contingency 102 88 -14Park transformation 294 296 +2Policing and wider security 475 475 0Elite and community sports 290 290 0Venue security 553 553 0Paralympic Games 95 95 0LOCOG Park Operations 67 68 +1Funding available to LOCOG 154 183 +29Operational provisions 95 117 +22‘Look’ of London & wider UK 33 33 0City operations 23 23 0Domestic & international tourism campaigns 4 4 0GLA Olympic & Paralympic programmes 13 13 0PSFP contingency & other savings remaining 425 388 -37TOTAL 9,298 UNCLASSIFIED 9,298 0
    5. 5. ODA ANTICIPATED FINAL COST Current AFC is £6,761bn, a reduction of£16m in the quarter Construction virtually complete £88m of ODA programme contingencyremaining UNCLASSIFIED
    6. 6. MOVEMENTS IN ODA AFC  £14m reduction in programme contingency required to meet risk, reflecting completion and handover of venues  £8m reduction in programme delivery costs due to savings achieved  £8m reduction in non Olympic Park venues due to transfer to LOCOG of training venue works and other savings  £12m increase on Structures, Bridges and Highways due to close out process and additional scope or reconfiguration of existing works  £11m increase on Olympic Village construction costs due to commercial contract close out process and increase in retrofit costs  £8m increase on other transport operating expenditure  Other small increases/reductions across the programme, incl. a £3m saving on Stadium and £2m saving on Aquatics CentreUNCLASSIFIED
    7. 7. LOCOG (full breakdown in report)  Government funding to LOCOG under Paralympic and Security guarantees. Almost all rest where LOCOG takes on extra scope (including transfers from ODA)  Funding available to LOCOG has increased by £29m in quarter to £183m, as a result of transfers from ODA and additional infrastructure works  £9m of transfer of scope and budget from ODA to LOCOG for: - Works to finalise Games-time training venues (£5m) - Pre-Games operational security (£4m)  £20m for extra venues and infrastructure works: - Finalisation of Olympic Park venues and infrastructure (£9m) - Structural resilience of venues (£5m ) - Stadium concession pods and other facilities (£8m) - Saving on pre-Games perimeter security (-£2m )UNCLASSIFIED
    8. 8. OPERATIONAL PROVISIONS(full breakdown in report) Increase of £22m in period to 31 May 2012 Additional funding of £19m released forcrowd management in Central London and inLast Mile between transport nodes andGames venues Increase of £3m to provide free publictransport for Games Maker volunteers andother essential work force during Games time UNCLASSIFIED
    9. 9. THE CHALLENGE  Olympic Park – Largest construction project in Europe  Equivalent to building Heathrow Terminal 5 twice over in half the time  World-class engineering, design, construction and project management  Delivered on time and within budgetUNCLASSIFIED
    10. 10. UK PLC SUCCESSOn time and within budget plus Innovative design Cutting edge green technology Exemplary health and safety Jobs and contracts up anddown the country UNCLASSIFIED
    11. 11. CONCLUSION With less than 50 days to go, theproject is on time and within budget- £476m of contingency uncommitted Massive boost to the globalreputation of UK PLC No complacency as the UK isgetting ready to welcome the worldUNCLASSIFIED