The huge increase in London's Olympic budget has confused the public and left taxpayers believing that costs have "exploded", according to Jacques Rogge, the president of the International Olympic Committee.
In an interview with the Guardian the most powerful man in Olympic sport said the government had confused the public by doubling the budget from just over £4bn at the time of the bid in July 2005 to the current figure of £9.3bn. Though supportive of the progress made by Lord Sebastian Coe and the organising committee since London was awarded the Games, Rogge suggested government handling of the budget review had imperilled public support.
Rogge's comments come as Coe, the London organising committee chairman, and John Armitt, chairman of the Olympic Delivery Authority, prepare to face further questioning on the budget and related issues from an influential parliamentary committee today. In March the Olympics minister, Tessa Jowell, announced that the original budget had more than doubled thanks largely to inflation, the addition of VAT and £2.7bn in contingency funding which the government has now admitted will all be spent.
Rogge supports the official London line that much of the increase can be explained by the difference between the 2004 prices used in the bid and actual 2012 costs, but believes the huge increase in the headline figure has led to public uncertainty.
"There are two issues that have made things confusing for the general public because they were not included in the original budget," Rogge said. "These are elements that have been added to the budget. They are VAT, which was not included at the beginning, and the second is a strong contingency fund, all of which gives the idea to the general public that there has been an escalation. In fact these are new elements.
"[Another] issue is that in the bid books we had 2004 prices, but we are speaking about a project that will culminate in 2012 ... and that creates confusion among the general public who think that the budget has exploded. There is a perception that there is a big difference but if you look at the constant impact of inflation it's not such an explosion."
However, Rogge remains hugely supportive of Coe and his team. An IOC coordination commission gave the city full marks for its fast start to the project earlier this year, and the IOC president endorses that view. "I am happy with the progress in London. This is a team that has kick-started very early and very efficiently. Immediately after the July 6 vote within a couple of months they had everything set up. London is an example in terms of respecting a deadline."
Rogge is hopeful London will remain exemplary in more ways than one. Coe's winning pitch to the IOC put engagement with youth at its heart. Rogge has made a similar goal the central theme of his presidency, and success in London would be invaluable.
Appointed in 2001 to succeed Juan Antonio Samaranch, Rogge inherited a movement tarnished by corruption and the corrosive impact of two decades of drug scandals, issues that have seen track-and-field audiences ageing and a generation turning away from Olympic sports.
Rogge's response has been to institute the Youth Olympics, a mini-Olympiad for those aged 14-18 that he is convinced will engage the lost generation even if some IOC members have their doubts.
"I have always been committed to engaging young people in sport," he said. "Sport has to compete with a lot of other cultural or social attractions. You have music, travel which is much cheaper, you have iPod, DVD, computer games. What we are going to do is bring the athletes together and speak to them in language that they understand. We will talk about the dangers of doping; teach them about a healthy lifestyle, good diet to combat obesity, we will teach them about Olympic values, anti-racism and fair play."
Before Rogge can contemplate opening the first youth games in 2010 he has the challenge of the Beijing Games to negotiate. Taking the Games to China has placed the IOC in the cross hairs of pressure groups and NGOs as never before, but the president is convinced more good will come from Beijing than harm.
"You have to live with the fact that a lot of people with respectable causes ... want to use the IOC to leverage their causes and ideals. We are there to make the Games a success, but at the same time we believe that the Games have really advanced the social programme in China. You have a new media law ... China has passed new labour laws, a new judicial system, they are fighting against child labour, and in the last couple of years they are fighting against pollution. We believe that the Games are a force for good, but they will not solve all the world's problems. We have to be realistic."
