Olympic Fund: Raided

Olympics 2012
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Making monetary raids is not a new concept for the UQ (aka UK) Ltd government. The current prime minister and ex-chancellor of the exchequer, Dr James Gordon Brown, has shown the way. The technically "untouchable" £2.2bn emergency fund is probably going to be used presumably because of an emergency, but there's hope with "Bojo's" threats. The Olympic Games are four years away and miscalculation has created the first early 'emergency' of predictably the many to follow. As 2012 approaches, the rate of emergencies will increase. It's predictable as the greed engines become more well-oiled.

The emergency fund was justified in 2007 for last-minute costs. These last-minute costs have begun in earnest (2008) with 2012 as the end-game date. Those milking the cash cow will be very fat in four years' time, but the cash cow itself will probably be very-long dead.

The Tessa Jowell (Olympics Minister) pledge was to keep this emergency fund "locked away" for the next few years, but as an example of a wonderful paradox, it may have to be used to ensure that the Olympic village is built as planned. Clearly, any planning is completely absent by virtue of considering 'raiding' the fund so soon. Predictably, the easy solution is jumped at first when terms like 'credit crunch' and 'falling property prices' are bandied about. If this is the stop of first convenience four years distant, then the prospect of the disaster forming a first-rate catastrophe is absolute.

The real plan is exposed by admitting negotiations on a public-private deal are threatened. This sounds like public money to fund a private deal between the Olympic authorities and Bovis Lend Lease, the development firm selected to build the village (Lend Lease website). Concern is directed to a London property price crash reducing the amount it could recoup when selling or renting the homes in east London after the games.

This should be a concern of the UK (aka UK) Ltd government and not just Bovis Lend Lease. Allegedly, Bovis Lend Lease is having difficulties raising the necessary finance as banks are reluctant to lend on such a large scale project (£2bn) at a time of restricted credit. The UK (aka UK) Ltd government is planning to stump up the money where the banks see a poor investment. This Australian (headquartered) company is allegedly demanding a greater financial input from the government than was originally envisaged. The Olympic Delivery Authority (responsible for providing the buildings and infrastructure) had hoped to agree a contract with Bovis Lend Lease by early this year. The proverbial loaded gun was seemingly pointed to the collective head of the government by the development firm Bovis Lend Lease even before a contract was/is solidly in place.

Incredibly, it seems that a £multibillion project could have been started without a contract

Bovis Lend Lease is not a small concern, but has interests in the UK, Australia and the US, which defines the shape of things to (predictably) come.

The release of any money will need to be approved by Tessa Jowell and the pushover Alistair Darling. Jowell is not likely to protest as the project is her personal 'baby' and it must succeed at any cost to save any personal embarrassment (to Jowell). Currently, £9.325bn (from £3.4bn) does imply a thick skin if personal shame does not feature. The original emergency fund contained £2.7bn, but £500m has already been allocated, hence £2.2bn.

The constant rhetoric of £billions attempts to give the impression of "it's not much really", but the illusion is pathetically weak.

Was £2.7bn. Now an "untouchable" £2.2bn
The Great Olympic Fund Giveaway
Get yours NOW! It won't last long

Only to be repeated once. Well, maybe twice or...

The idea was that the remainder should be used only for 'last-minute' problems. Maybe never, but certainly not 'first-minute' difficulties. Tory Olympics spokesman (Hugh Robertson): "The government's decision to announce a £2.7bn contingency fund has simply encouraged contractors to increase their budgets."

Sweeten the stench of the pig trough

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Looking ahead, this New Labour government as a current disaster won't be around in four years' time (2012), but the taxpayer is already saddled with the debt and will be for the next several decades.

This is money 'creation' in action: redistribution: £9.325bn 2008