Vince Cable

Vincent Cable has secured a debate on Tuesday on the financing of the Olympic Games with a view to challenging the assumptions which are being made about costs and revenues: "there is a cross-party consensus to support the Olympics but I picked up strong expressions of feeling on the doorsteps during the local elections about the council tax levy - now as high as £40 for high banded property - and fears that it could escalate. Realistically, the levy is a minimum not a maximum".

He pressed the sports minister to do some scenario planning on a range of costs which reflect a realistic rate of construction cost inflation. "It is absurd to assume 3% cost inflation when it is an estimated 7% at present and when the massive construction projects in the Olympic complex are competing for labour and materials with new transport projects, the Thames Gateway bridge and much else. The cost overruns on the Wembley project - and even bigger disasters like the British Library, the Scottish Assembly and the Jubilee line - are a warning. With a fixed date of delivery and with no flexibility contractors could easily assume the whip hand in any negotiation over costs".

"It is not acceptable for London council tax payers to face the risk of open ended costs; nor will the Treasury come to the rescue; nor should it, or the lottery funds be raided further. We need evidence that those planning the Games are being realistic and are concentrating on simple designs with the minimum risk of big cost escalation".

"It will be very easy for the present generation of decision makers in government and London to press ahead knowing that they can dump the cost onto a new generation in six years time. That must not be allowed to happen. That is why I want the focus to be on costs now."

"I think most local people want the games to be a success. But our residents will be paying for cost overruns in council tax and deriving little benefit. We were refused a modest lottery grant for the Hampton Pool but hundreds of millions are being diverted into the games. I want to sound a warning that residents need to see evidence that costs will be kept firmly under control and will not be asked to sign blank cheques".