Hopes of ‘golden’ Games for business dashed

But since Charles Allen, the head of the London 2012 Nations and Regions Group, stood in Dalby Forest and claimed the county could become integral to the event, Yorkshire’s companies have failed to secure even three per cent of the major contracts available.

With under a year to go before the opening ceremony, the Yorkshire Post can reveal the region’s share amounts to little more than one per cent of the spending on direct contracts for the Games’ infrastructure, and fewer than half a per cent of the supply chain work estimated to be available.

And while Yorkshire has performed poorly – only the North East won fewer contracts in England – the other regions also struggled as once again the bulk of public funds concentrated heavily on London and the wider South East, which claimed almost two thirds of the contracts on offer, worth £4.3bn.

Yorkshire Gold, the regional Olympic body, has said the legacy of the Games stretches beyond the tier one contracts – those that directly supply the Olympic Delivery Authority (ODA) – and point to the estimated 200 businesses in the region which have benefited in some way from the supply chain.

However this is put into context by the ODA’s own estimate that there have been 50,000 supply chain “opportunities” generated for businesses, and neither Yorkshire Gold, or The London Organising Committee of the Olympic and Paralympic Games (LOCOG), can provide details of where these contracts have gone or how much they are worth.

The last two years have seen numerous visits to the region by LOCOG chairman Lord Coe, who said the Games could provide an “extraordinary” sporting and economic legacy for Yorkshire by safeguarding jobs and inspiring young people.

In Sheffield – which was already home to major sporting arenas such as Ponds Forge and the English Institute of Sport – business leaders maintain the city has benefited hugely from the Olympics, not only through direct events but also from securing other international tournaments.

However elsewhere in the region chambers of commerce are more sceptical of what long term economic impact the event will have outside of London.

Both the Leeds, York and North Yorkshire chamber of commerce and the Hull and Humber chamber of commerce questioned whether the promised economic legacy could be delivered.

Richard Kendall, head of policy at the Hull and Humber chamber, said: “The Olympic legacy will inevitably be much less outside London, which is benefiting from most of the spend. Although we have had some notable successes in the Humber, I think some companies will have been put off by distance and the perception of there being lots of competition. Our area can still benefit, though, particularly from visitors who are likely to arrive in Hull by ferry and then travel south.”

According to the ODA’s official statistics for the contracts in England, London secured 759, the South East 233, the East 138, the South West 67, the West Midlands 60, the North West 53, the East Midlands 44, Yorkshire 43 and the North East 22.

A spokeswoman for the ODA said the large direct contacts were the “tip of the iceberg” in terms of the nationwide benefit of the Games.

She said: “UK businesses of all sizes and from every sector have worked together to deliver the largest project this country has seen for generations and are reaping the benefits of millions of pounds of work spread through the UK-wide supply chains.”

She said the total value of supply chain contracts to individual regions is far higher than the figure provided for direct contracts alone – although neither the ODA or LOCOG will provide these figures.

Lord Coe said the Olympics legacy stretches far beyond the economy and sport and also includes education and cultural programmes. He also said the Olympic Torch will spend six and a half days travelling through the region – the only location with a longer visit is London.

“Through the London 2012 Nations and Regions Group, of which Yorkshire plays a key part, LOCOG works right across the UK to promote and secure involvement in all the social, sporting and economic opportunities related to the London 2012 Games,” he said.

“Yorkshire, my home county, is demonstrating great energy behind the Games and benefiting from tangible results.

“The direct and indirect impact on Yorkshire cannot be underestimated and the people of Yorkshire should feel proud of their role which I can only see increasing as the Olympic Flame heads to Yorkshire for five evening celebration stops and taking in many other locations each day as the Games draw closer.”