Hugh writes in the Kent on Sunday

When The Editor asked me to write 600 words for Kent on Sunday about the 2012 Olympics, he asked me to answer four key questions.

These were whether this is going to be the most expensive Olympics ever, what do we need to do to deliver them on time, what has happened over the VAT and how can we benefit here in Kent?
The first question is almost impossible to answer for the simple reason that the government refuses to be open and transparent about the real cost of staging the Games. When The Conservative Party agreed to support the bid, we did so on the basis of the original budget. This comprised a bill of £1.044bn for regeneration financed by The Exchequer, £2.375bn on construction drawn from The National Lottery, London Council Tax payers and the London Development Agency and £2bn for operating the Games raised from the private sector.

We now know that the regeneration bill has risen considerably – possibly to £2.5bn – whilst The Secretary of State has revealed to the DCMS Select Committee that the construction bill had already risen to £3.3bn. In addition, it has emerged in recent weeks that the VAT situation has yet to be settled whilst The Chancellor, who must have signed off the initial budget, is now insisting on a 60% contingency fund. When you add in the security costs of at least £1bn and the possibility of further building cost inflation, it is clear that these are not going to be a cheap games!

The second question is whether we can deliver the Games on time? I think that we can if the experts are allowed to get on with their jobs without constant interference from the government and The Mayor. Despite well publicised disasters such as Wembley and The Dome, we can build sports stadia on time and to budget in this country as the new stand at Ascot, the new Arsenal Stadium and the south stand at Twickenham have shown. The key is to get the initial specification right and then not change it mid construction!

The third issue is the question of whether the Olympic regeneration and construction budgets are going to be subject to VAT. The fact that this has ever become an issue is a simple case of government incompetence. Anybody building an extension to their house knows that they have to pay VAT so it was inexcusable not to settle this issue when the budget was initially drawn up. When The London Olympic and Paralympic Bill was going through Parliament, I was told that construction and regeneration were going to be VAT exempt, as were the various professional consultants employed during the bid phase, so it is time for the Chancellor to honour this commitment and waive the VAT.

Finally, Kent has the potential to benefit enormously from the county’s proximity to the 2012 Olympics – although we are handicapped by the requirement to operate within the straitjacket of a ridiculous regional structure. I hope that Kent will benefit as a destination for training camps and for post competition leave. Given our closeness to the Stratford site, I hope that many Kent businesses will win contracts to service the Games and that Kent people, both young and old, will take the opportunity to act as Olympic volunteers –and we need to find 70,000. Finally, and most importantly, I hope that we will honour the key commitment we made to the international community when we won the right to host the Games – namely to enable young people through sport.

If hosting The Olympics leads to a regeneration of sport in this country that makes people happier, healthier and better integrated than we will be able to look back on this project with pride. If it simply leads to a set of empty stadia in the East End of London, however smart, we will have missed a once in a lifetime opportunity.