Scottish firms miss out on Olympic contracts

Questions have been raised over why Scottish, Welsh and Irish firms have not benefited more from lucrative Olympic construction contracts after a parliamentary question revealed Scottish firms were missing out on millions.
A parliamentary question by SNP Olympics spokesperson, Pete Wishart MP, reveals that Scottish firms had been awarded just £22million worth of contracts, Northern Irish firms £17m, Welsh firms £570,000 and overseas companies £12m while English-based companies were awarded over £5 billion – more than 98% of the contracts.
Mr Wishart said the figures raised serious questions over whether contracts had been marketed fairly across the UK to deliver benefits for all.
Mr Wishart said:
“The Olympic’s were supposed to bring opportunities for businesses all over the country, but it seems Scottish, Welsh and Irish firms have been an afterthought when lucrative contracts were awarded. The mammoth imbalance in where these contracts are going raises real questions on whether they are being marketed fairly across the UK to deliver benefits for all.
“It is a double whammy for Scotland because we are already missing out on any consequentials from the massive spending regenerating London's East End for the Olympics whilst Downing Street denies the same funding to the Scottish Government for Glasgow which will host the Commonwealth Games.
“Spending by the UK Government on regeneration around the London Olympics should generate £165m - £33m per annum over the five years to 2012-13 - for Scotland under the Barnett formula. The expenditure is on areas such as regeneration and there is a strong case argued by all three devolved administrations that this spending should rightly be subject to the Barnett formula in the normal way.
“The UK Government has failed to honour assurances that companies across the country will benefit from the London Olympics. With hundreds of millions still to be spent, UK Ministers must make up for the Scottish short-fall in spending and make sure Scottish firms now benefit from this.”
Note:
Mr Wishart’s parliamentary question is detailed below:
Pete Wishart: To ask the Secretary of State for Culture, Olympics, Media and Sport (1) what Olympic construction contracts of what monetary value have been awarded to companies based (a) in Scotland,
(b) in Wales, (c) in Northern Ireland, (d) in England and (e) outside the UK; [8680]
(2) what recent estimate the Olympic Delivery Authority has made of the number of new contracts remaining to be let in respect of the London 2012 Olympics; and what estimate has been made of the monetary value of those contracts. [8681] Hugh Robertson: The aggregate value of contracts directly awarded by the ODA to businesses as at July 2010 is as follows:
Scotland: £22,200,816 (0.43%)
Wales: £573,678 (0.01%)
Northern Ireland: £17,094,646 (0.33%)
England: £5,073,551,658 (98.9%)
Outside the UK: £12,039,243. (0.23%)
Total value of all contracts: £5,125,460,041
The location of each business is determined by its registered address.
These figures represent the sums that the ODA has committed up to the 14 July 2010. These values represent the sums that the ODA has spent to date, rather than the end contract value, as the end contract value in many cases will not yet be known.
The figures given only account for the contracts awarded to the top tier of contractors (tier one contractors). The figures do not include the values of contracts further down the supply chain, in tiers two, three and so on, which are awarded by the tier one contractors rather than by the ODA. The ODA estimates that the total value of supply chain contracts to the regions runs into millions of pounds, but these are not public procurements and so the full value of contracts won across the UK is not captured by the figures provided. The ODA estimates that overall up to 50,000 contracts will be generated throughout its supply chains. Examples of businesses from across the UK that are supplying the ODA's contractors is available in the business section of the London 2012 website under the heading ODA Suppliers, where you will be able to find suppliers listed by venue and sector:
http://www.london2012.com/business
The ODA estimates that it has approximately 140 remaining contracts to let, covering remaining requirements on the Olympic Park, transport, and ODA corporate requirements. The estimated value of the remaining contracts is approximately £275 million. The remainder of the ODA's budget is allocated to transport projects being delivered with other partners, security and ODA operational costs.
http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm100719/text/100719w0001.htm#10071914001641
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