London Olympics Bill

Given today’s security situation, I cannot see how London can be kept entirely secure within that budget. Thirdly, the Mayor has been commendably honest about the fact that his key aim is to regenerate the east end of London. That is not entirely compatible with the Government’s priority of delivering the 2012 Olympics on time and to budget as the best games ever. Those conflicting priorities will inevitably put pressure on the budget. Fourthly, the cost of acquiring land in the lower Lea valley, and therefore of site assembly, has risen substantially since we won the bid on 6 July. Finally, as scrutiny of the financial markets shows, inflation in the construction sector is running at about 7 per cent. as a result of rising energy prices and the increased cost of raw materials. Natural disasters in the USA and Asia, allied to high demand in China, have rendered the original 3 per cent. prediction unworkable. All Members know of the concern already felt by many of their constituents about rising council tax bills. They affect everyone, but particularly the elderly—who have no way of increasing their income to cope—and the vulnerable. We were happy to accept the original £625 million figure, although we had some worries about the lack of accountability. Since the plans were drawn up, however, the five factors that I have listed have led us to believe that Londoners should not be left with an open-ended commitment. Accordingly, I believe that the time has come to introduce a formal mechanism to ensure that Londoners receive a measure of protection. Let me end with two pleas. First, I ask all London Members to consider a new clause that simply gives a statutory basis to the Government’s own estimate of the cost of the games to council tax payers, and to support it. If they do not do so, they will risk inflicting a considerable extra bill on their constituents.