2014 Commonwealth Games ‘must not be another Holyrood’

19 Nov 09
Scotland’s public sector watchdog has told the organisers of the 2014 Commonwealth Games, to be staged in Glasgow, that they must ensure costs are kept under control and risks are managed
By David Scott

20 November 2009

Scotland’s public sector watchdog has told the organisers of the 2014 Commonwealth Games, to be staged in Glasgow, that they must ensure costs are kept under control and risks are managed.

Audit Scotland’s advice, in a report published on November 19, followed the disclosure earlier in the week that extra funding was going to be provided to plug the Games’ budget black hole of more than £80m.

The bulk of the extra cash will come from the Scottish Government, which has pledged £59m, including £20m for a reserve fund. A further £9m will be contributed by Glasgow City Council and £13m is expected from commercial activities.

The announcement, made in advance of the Audit Scotland report being published, led to a row over the bailout package.

Scottish Tory depute leader Murdo Fraser warned that the Games, still five years away, could turn out to be a ‘disaster’ on the same scale as the Scottish Parliament building, which was grossly over budget. The total cost of the Games is now likely to reach £454m.

He said: ‘No wonder people believe that every single public works programme runs over budget. At any moment, it would be a problem but in these difficult times it is simply appalling.

‘We are already £80m over budget and the Games are still five years away. Is this going to be another disaster on the scale of the Scottish Parliament?’

First Minister Alex Salmond attacked the BBC for refusing to commit itself to a broadcasting deal similar to that agreed for the Games staged in Manchester in 2002.

He said: ‘The BBC have not yet stepped up to the plate and offered to match the Manchester figure, and Scotland is left looking at a potentially significant shortfall.’

The Audit Scotland report called on the Games organisers to put in place an overall programme plan, ensure costs were under control and continue to identify and manage other risks.

It said it was vital that separate plans were pulled together very soon ‘so that they are properly managed and co-ordinated’. According to the watchdog, initial costs estimates for some of the Games venues were ‘too optimistic’.

Deputy auditor general Caroline Gardner said attention to detailed planning at this stage was an essential part of contributing to the success of the Games.

She added: ‘In the current economic climate, public sector finances are already under pressure and it is essential that the organisers keep costs under control.

‘They need to continue to monitor and review the budget assumptions regularly.’

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