OLYMPIC CONTRACT QUESTIONS FOR UK GOVERNMENT

OLYMPIC CONTRACT QUESTIONS FOR UK GOVERNMENT

CONCERN OVER CONTRACTS AS SCOTLAND ALREADY MISSING OUT ON CONSEQUENTIALS

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 1,022 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.”