MAYOR IS LOSING HIS GRIP OVER OLYMPIC BUDGET

1.34.20pm GMT Wed 15th Nov 2006

Speaking after Mayor's Question Time in the London Assembly this morning, where it emerged that Treasury officials are now arguing for a 60% budget contingency, Liberal Democrat Olympics spokesperson on the London Assembly, Dee Doocey, said:

"There is clearly a battle going on between the Treasury, the Olympic Delivery Authority and the Mayor about the total amount of contingency money needed for the Games. The Mayor told the Assembly today that he was satisfied the original contingency of 20% contained in the bid document was robust. But under questioning he admitted that to reach a compromise with the Olympic Board, he would be willing to take that contingency to 40%.

'Total confusion now reigns over the Olympic Budget and the Mayor is in danger of loosing his grip. The Treasury is holding up the publication of the Budget for the Games and is preventing the Assembly doing its job of scrutinising the Olympics.

'I have deep concerns about this delay given Gordon Brown's track record of failing to deliver for London. The treasury has delivered London a dysfunctional PPP contract, failed to deliver on Crossrail and now he's trying to take over running the Olympics.'