Fears over Games payback to Lottery

MPs have raised doubts about repaying the National Lottery for its key role in helping to fund the London 2012 Games.

Lottery money was a vital part of the public funds used to develop the Olympic Park and infrastructure needed for the Games.

The deal was that the Lottery would be repaid from future returns from developments at the park but the Public Accounts Committee (PAC) notes that current projections suggest the first payment will not be until the mid-2020s.

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PAC chairman Margaret Hodge said: “Lottery good causes lost money during the period running up to the Games. They need to be assured that they will get some of this back from the financial returns secured from the development of the Olympic Park.

“The Lottery provided more than £2bn towards the ... Games but has little influence over decisions by the London Legacy Development Corporation about the timing and value of sales over the next two decades. It is not clear that their interest is being adequately promoted and protected.”

In its post-Games review the PAC states: “We are not convinced that the Lottery and Exchequer interests in securing financial returns from development of the Olympic Park will be sufficiently protected by the existing arrangements.”

The MPs suggest the Government should develop “a mechanism” to ensure the LLDC’s decisions are transparent, prioritise the interests of the Lottery and that returns to the Lottery are closely tracked.

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The embarrassing sight of empty seats at the Games and the availability of tickets for the general public was another concern.

During the Games a large number of accredited seats went unused at events for which many members of the public could not get a ticket.

The PAC stated it was “a shame that so few tickets for popular events were available to the UK public”.

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