£2.4bn...Are You On Crack?

Not my usual style...but none the less...topical and I’m sure it will spark debate...in fact...I’d love to hear your side... I am but 1 opinion... normal positive service will be resumed tomorrow so stick with me..

I totally get why so many people would want to have the Olympics in Britain... the atmosphere, the parties, the feel good factor, the memories, the history... I’m sold on all of those things...but at what price do they come?

So much has been made about London 2012... so many promises made... and broken when
it comes to budgets and other things.  So I ask you...do you think it will all be worthwhile in the end?

When the London Committee submitted their proposal, they set the budget to £2.4bn and was soon after, revised to £3.3bn.  It then jumped to £9.3bn with a contingency budget of £2.7bn... so now we’re at £12bn... but... Jack Lemley, the former 2012 chief ‘insists’ the true cost will be more like £20bn...nearly ten times the original estimate. WOW!!! 

When Athens won the right to host the 2004 games in 1997, its budget was $1.6 billion. The final public cost is estimated to be around $16 billion — 10 times the original budget! Meanwhile, most of the Athens’ Olympics facilities are reportedly underutilized. Maintenance costs on the facilities in 2005 came in around $124 million and...allegedly...there is little use of the two Olympic soccer stadiums.

Let’s park the cost conversation for now...let’s look at who is going to benefit from the games financially? 

There is no doubting that it will be a great money making opportunity...but for who?  Me...you...local businesses?  I’d argue it’s just another opportunity for the rich with big houses to rent out and hotel rooms to fill to make even more money (the only variable that increase during a host city Olympic year across travel, restaurants and flights was hotel rates... BUT...most of this money went to headquarters of hotels chains located in other cities!).  What of other local retailers...they have the cheek to charge us, the local residents, more for the things we buy on a daily basis, knowing the travelling Olympic fans will pay the higher prices because they have to.  In fact it’s actually common for local residents to go out of town whilst the games are on to avoid this... which has a negative impact on business. And do you honestly see them reducing the prices after the games?  Of course not...their revenues and profits are up and they see a ton of people prepared to pay the higher prices...so we get stung in the long run.

So what happens to bigger retail businesses such as department stores?  Well, again, statistics prove that they  are actually harmed when a city holds the games because the general public don’t visit the stores, knowing the city is crowded... and the Olympic fans don’t spend their time in John Lewis... the spend their time watching the games, drinking and eating.

What of other businesses unconnected to the games (i.e. they don’t sell merchandise, hotel rooms, travel services, etc)?  How will they be affected by it?  What you will find is that in a lot of areas, there will be road closures and increased congestion due to dedicated ‘Olympic Lanes’ to transport the Olympic VIP’s to and from the games...thus effectively... completely screwing up what is already a gridlocked city, meaning those businesses are hugely affected...they can’t get products in or out to their customers and their customers certainly can’t get to them. 

Granted, I speak about the impacts on London mainly, but the games are spread out over other cities so most of these challenges and effects, are relevant to all of the cities involved.

What of cities where the games are not taking place?  What do the residents there gain from the UK hosting the games?  Not a whole lot... apart from the bill... unless anyone out there can contribute to this blog to the contrary?

Beijing saw basic infrastructure improvements as a result of the games... which was long over due... ask any commuter in London today and they would tell you the same... yet we aren’t getting those improvements.  The bottom line is that the network of tunnels in London cannot be expanded... there’s no room down there.  We can’t use larger carriages because they won’t fit in the tunnels...we can’t use longer trains because they won’t fit on the platforms... So perhaps the platforms could be extended?  Has anyone thought of this?  I think most people would probably settle for a more reliable service, less ‘signal failures’... and some god damn air conditioning.   Not too much to ask in this day and age.  If we are made to squeeze into small carriages full of people already, at least make it as comfortable as possible.

So I ask you...in severe economic times such as we are win...I for one believe we could have used this money more wisely.  Clearly they have the ability to raise it otherwise the stadiums and parks would not have been built..so the tax payer has once again footed the bill... as we have for the financial crisis...sounds like the Olympic committee have had their own financial crisis... yet Lord Coe insists “Jack's view is not shared by anyone working on the project. The Chairman believes the project can be delivered within budget.'...are you on crack mate?   You said it was going to be £2.4bn... and now we are at £12bn...sounds like our Jack was right.

Try explaining these figures to government funded projects that have had their funding taken away and are now facing closures, schemes designed to improve the lives of many of our poorest or sick.  I have to be honest... I know where I would want my tax money to go... and it isn’t on a new flash stadium that won’t get used again.

So...phew...I know... quite a rant...I know there will be a vast number of positives to come out of the games.  The moral of the country for one.  We’ve seen just what a great nation we are recently with the Royal Wedding...I organised a street party that around 80-90 people attended from all walks of life.  We all had a fantastic time and built friendships that I hope will last a life time... so let’s show the world how we can party!

But it has to be Inspiration that is the biggest winner here surely?  Our children will get to witness such an amazing event in their lifetime that will have a profound effect on them.  Inspiring youngsters is a big passion of mine so anything that provides that gets my vote... so I say watch the games with your children, let them see just what can be achieved if they try hard, if they want something enough...let it be them on the podium in 8, 12, 16 years time... let it be you, the proud parent, pushing them to achieve...so a bit like my ‘Harry’ post... let them try as many sports as you can... let them find what it is they are good at... then encourage, support and guide them as best you can...so one day...just maybe...they’ll bring home a medal!