Questions over Olympic contracts

Questions have been raised over why Scottish, Welsh and Irish firms have not benefited more from London Olympic contracts after a parliamentary question revealed just 17 Scottish firms had received Olympic Delivery Authority (ODA) contracts – in contrast to 1022 English firms. Wales received 4 contracts and Northern Ireland 3, while as many contracts went overseas as came to Scotland.

SNP spokesperson on the Olympics, Pete Wishart MP, said the figures raised serious questions over whether contracts had been marketed fairly across the UK to deliver benefits for all.

Mr Wishart said:

“It seems clear from these disappointing figures that Scottish companies are an afterthought when lucrative Olympic contracts are being awarded. The 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 deny the same funding to the Scottish Government for Glasgow which will host the Commonwealth Games.  The Scottish Government are funding 80% of the Games’ costs, with Glasgow Council funding 20%.

“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 is clearly failing to honour assurances that companies across the country will benefit from the London Olympics, and in the process, Labour Ministers are failing Scottish businesses.”

Note: 

Mr Wishart’s parliamentary question is detailed below:

Pete Wishart: To ask the Minister for the Olympics how many Olympic construction contracts have been awarded to firms based (a) in Scotland, (b) in Wales, (c) in Northern Ireland, (d) in England and (e) elsewhere. [289486]

Tessa Jowell: The Olympic Delivery Authority (ODA) is responsible for developing and building the venues and infrastructure for the London 2012 Games. To date in total 1,063 businesses, including those involved in construction, have won £5 billion of work directly supplying the ODA and hundreds more have won work in the supply chains.


The numbers of the ODA's direct suppliers by nation (according to their registered address) are as follows:

(a) Scotland: 17

(b) Wales: 4

(c) Northern Ireland: 3

(d) England: 1,022

(e) Outside UK: 17.

The ODA estimates that there is over £1 billion worth of direct procurement to be completed. This may be in the form of new contracts or amendments to existing contracts. These direct procurements will generate thousands of business opportunities in the supply chains. The ODA is currently conducting research in its supply chains with initial results due later this autumn, this will show the names of companies across the UK that are already 

http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm091029/text/91029w0008.htm#09102942001416