Some SMEs Might Struggle to Supply Olympics Admits Delivery Authority Chief

Posted: 13/11/2008

Olympic Delivery Authority chairman John Armitt has admitted that to worrying that some SMEs working on the project might have cash flow problems during the economic downturn.

He said he would be surprised if there were not one or two fractures in the supply chain as 2012 goes ahead.

Addressing the Cambridge University Land Society Global Economy Forum Mr Armitt also admitted that planning for the legacy of the site and its buildings would become very political - especially if there was to be any cutting around planning issues after the games.

Introducing Mr Armitt Forum Chairman Douglas Blausten, senior partner at Cyril Leonard said trying to work out the legacy for the Olympics was a "formidable task".

Mr Armitt insisted that the 2012 London Olympics would have a sense of fun and a sense of party compared to Beijing and there was no attempt to emulate the Chinese capital in terms of making the games bigger or better.

He said 92 buildings had had to be demolished on the Stratford site and more than 90% of demolition materials had been recycled. More than one million cubic metres of soil had been moved but the main venue sites had been handed over for construction ahead of schedule.

Some 2,870 housing units would be created in the Olympic Village and between 30% and 40% would be of affordable housing.

More than 800 companies had secured over £2 billion in work on the project so far and 40,000 companies had registered on the tendering website.

Although the downturn would have an effect on the project he stressed: "It is the one project that is not going to be stopped. It is the one project that has to be completed."

Seventy five pence in every pound spent on the Olympics would go into the long term regeneration of the area but it would need an organization similar to the London Docklands Development Corporation to drive the legacy forwards after the event.

If it was left entirely to the public sector it just would not happen. "There will be a need to create an organization which is allowed to drive that forwards," he said.