THERE IS A BLACK HOLE IN THE OLYMPIC BUDGET

9.59.14am GMT Wed 16th Jan 2008

Commenting on the funding 'black hole' in the sale of Olympic land, Olympics Spokesperson on the London Assembly Liberal Democrats, Dee Doocey, said:

"How can the Mayor and the Department of Culture, Media and Sport deny that there is a shortfall in Olympic funding when the sums simply do not add up?

"A minimum of £2.1 billion needs to be generated from the Olympic land sales in order to cover costs that the Mayor has committed to. But I have grave doubts that the profits from the sale of Stratford land will cover this. Land prices would need to rise by 16% per annum to cover these costs. To place so much faith in a volatile housing market is ridiculous. There is a black hole in the Olympic budget and the fact that the Mayor has committed money that does not exist is cavalier and irresponsible.

"By dismissing the deficit as 'pessimistic' the Mayor is burying his head in the sand. Londoners must not be made to pay the price for the Mayor's incompetence."