Olympic cash should be a loan and repaid, say MPs

Jun 26 2007 By The Journal

Lottery cash diverted from museums and galleries to pay for the London Olympics should be treated as a loan and repaid, MPs told the Government yesterday.

The Commons Culture, Media and Sport committee expressed "deep concern" about the siphoning of money from Britain's cultural sector - and called on ministers to confirm that the cash would be repaid by selling land after the 2012 Games.

The committee also said no further cash should be taken from the Heritage Lottery fund or other lottery distributors if the Olympics price-tag rises above the £9.3bn budget outlined by Culture Secretary Tessa Jowell earlier this year.

Fears have been raised that the diversion of another £675m from the Lottery could have the greatest impact in the North-East, which has thrived on culture-led regeneration, with lottery funding used to help pay for iconic landmarks such as the Angel of the North and The Sage Gateshead.

Alec Coles, director of Tyne and Wear Museums, said the Olympics were an exciting opportunity to showcase the country and the North-East.

"However, like many we are concerned about the diversion of substantial Lottery funds to cover the cost of the Olympics.

"We hope it will be a loan, as indicated in the report," he said.

Blaydon MP Dave Anderson said: "We need to have a serious debate about the funding of it and making sure we don't do it at the expense of other things.

"But I am concerned that some of the hysteria is going to have a negative impact on the Olympics. It should be something that should give real credit to the country."

The Department for Culture, Media and Sport said Ms Jowell had promised to ensure the Lottery would "share" in the profits of selling land.