Olympic costs: the excuses
There are apparently not going to be any more hand-outs of public money for the 2012 Olympics. Well, none from central government anyway. Who knows how much Londoners will be forced to pay through our local taxes?
But that's not what I wanted to write about. The interesting bit is what the new mayor said:
"This was a project, an Olympic Games, that was won, secured, commissioned at a time of economic plenty.
"We're being asked to deliver it in a credit crunch and with what people say is a recession looming. The International Olympic Committee understands that."
Boris ain't exactly the sharpest tool in the box, but he seems to be saying that the budget has increased because it's now harder to secure credit (that is, interbank loans and large commercial loans cost maybe 2% more per year). So that 2% a year equates to 5.325 billion pounds. Or an extra 133%. Even if they were counting on borrowing every single penny of the original 4 billion, there's no way in hell that an extra 2% a year would cost 5.325 billion quid. For that to be the case it would have to be a roughly fifteen year loan. No-one in their right mind would give such a loan to a company that will spend money for five years like it's going out of fashion, then really coin it for a year, and then never have any income ever again. At most the loan would be for six years. So if the "credit crunch" is to blame, then the crunch would have to have put interest rates up by 5%. Which it hasn't.
So, Mr. Johnson, where has the 133% cost increase really come from? Were the original bidders innumerate? Or did they simply lie? Those are the only two possibilities. Yes, I can understand some cost over-runs. But that much simply can't happen accidentally.
And the bit about security costs maybe rising? they've already gone up five-fold.
Thankyou very fucking much Seb Coe you midget Tory CUNT.