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2012 Features

Ken Livingstone in Singapore

Ken Livingstone hits back over rising Olympic costs

By Political Editor Tim Donovan
Ken Livingstone has launched an attack on two of the most senior figures in the Labour government - chancellor Gordon Brown and environment secretary David Miliband. BBC LONDON's Politcal Editor Tim Donovan heard what he had to say at City Hall

Tim Donovan

Ken Livingstone has launched an attack on two of the most senior figures in the Labour government - chancellor Gordon Brown and environment secretary David Miliband.

Already in disagreement with the Treasury over the rising Olympic costs, the mayor threatened to campaign against the government in the mayoral election in two years time if it didn't go ahead with the trans-London rail link Crossrail.

And he described Mr Miliband as an 'acute disappointment' for failing to give him sufficient powers to dictate waste disposal in the capital.

Gordon Brown

At his weekly press conference at City Hall he said:
"There is a serious effort to get the costs of Crossrail down to a size which the Treasury can manage.
"If a Labour government failed to press ahead…..it should make for an interesting election campaign if they expect me to be their Labour candidate because it is not a decision I could defend."

Clearly frustrated that the chancellor has not yet given the greenlight over funding for the project, he denied he would be prepared to leave Labour and stand as an independent candidate over the issue, but added:

" I am not a Labour government's candidate for mayor. I am a London Labour candidate for mayor and I am standing on the basis that I support Crossrail and if the government does not then I shall disagree with them."

Tessa Jowell

Livingstone also attacked the Treasury for suggesting that a realistic budget for the Olympic -currently being reviewed - should include 'contingency funds' of 60 percent.
He said the Treasury had had a bad record over the years on big spending projects like defence procurement contracts, but it wouldn't be the case with the Olympics.

Just an hour before Culture Secretary Tessa Jowell revealed to MPs that the costs of creating the Olympic park had risen by £900 million, Livingstone was telling journalists he 'stood by' the original £2.4 billion budget.

The mayor launched his tirade against David Miliband - tipped by some as a future Labour leader and possibly its next deputy-leader - as he commented on plans by Southwark Council to increase the amount of rubbish it sends for incineration.
The Environment Secretary recently approved the building of a new incinerator in Belvedere in south east London -despite opposition from the mayor.

David Miliband MP

"The government is fundamentally wrong on this and David Miliband has turned out to be an acute disappointment.

"Not only is he fundamentally flawed and damaging to London's environment but he has been particularly short-sighted in deciding on the most polluting and wasteful form of the two options for incineration.

The mayor claims Miliband 'rolled back' from giving him powers over a new waste authority for the capital because his officials favoured incineration over recycling.

London's record on incineration and its poor recycling rates were, he said, a 'disgrace'.


In response, regarding Crossrail a Treasury spokesman said:

"Crossrail is important for London’s future – that’s why the Government is progressing a hybrid bill which provides the powers needed for construction.  Decisions are still to be taken on how it will be paid for. As we have said, there will need to be a contribution from all of the project’s beneficiaries"

Background
Funding and financing issues will need to be considered in the context of Sir Michael Lyons’s Review of Local Government Finance, which will inform the 2007 Comprehensive Spending Review.

In the meantime, the Government’s current priority for Crossrail is:

securing successful passage of the Bill;

ensuring the scheme’s costs and scope stay manageable; and

getting a better definition of the project, including its costs.

On olympics:

Treaury spokesman said:
'DCMS are currently reviewing the costs of the Olympic bid. The Treasury along with London government and the ODA are working closely with them on this. We are not going to give a running commentary on these discussions.'


Your views

I listened to the interview with The London Mayor, when he said that each Londoner will pay 38 pence per week in contribution to the London Olympics costs… but he went on saying that the Government will make profit, and that is, among other things, through selling the thousands of houses – which we, the Londoners – contributed to building on the Olympics site. So we contribute to the costs and the Government takes the profit. I think it will only be fair enough if each Londoner receives their share of those profits.

Manal

This latest sham over the price of the Olympic Area in East London should be the final straw.
Not only for the Project, but for the bunglers in high office running the project. We all know that this latest estimate will probably quadruple anyway, just like the Millennium dome. Despite the claims No one wanted the Olympics' anyway apart from money men. Survey the public to name a few British Athletes, it is unlikely that many could.
                                                                            
Merv

If the government were to scrap some of the unnecessary QUANGOs that they've created they would free up several billion pounds every year that could be used to pay for the Olympics. Whatever the final solution, Londoners should NOT pay anymore than originally agreed.

Rebecca, Croydon

Tessa Jowell says that London council taxpayers will "be asked" to fund the overspend. That's OK if we are asked AND have the right to say no. I live in south-west London and can see no benefit to me for the money I'm already paying (which no-one asked me about) and object to paying more. I suspect that in the end I will have no say in the matter.

Gary Boyes
Morden

This £900m overspend is a gross incompetence and should be a sacking offence.

Ann

last updated: 22/11/06
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