Lapped by South in Olympic business

Jul 2 2008 by William Green, The Journal

NORTH East businesses are being short-changed over the 2012 Olympics with lucrative contracts being handed to London and overseas companies, it was said last night.

Ministers pledged to spread the benefits of the London Olympics nationwide, but a new analysis has revealed just seven contracts – 1% of the total awarded so far – have gone to this region.

And 411 of the 650 contracts worth £2bn have gone to companies in London and the South East, while overseas firms have won 10 contracts.

It is estimated the Games organisers will eventually hand out 7,000 direct contracts, which together with its suppliers will form supply chains of 75,000 opportunities, worth £6bn.

The developments follow funding cuts depriving the region of millions of pounds in arts cash to pay for the London Olympics. Liberal Democrat culture spokesman Don Foster, who published the analysis, said there was serious doubt about the Government’s promise all parts of the country would benefit from the Olympics.

Greg Stone, a senior Lib Dem Newcastle councillor, said: “I think it has a responsibility to ensure that the whole nation benefits from this. And so far we seem to be getting short-changed by the whole deal.”

Ross Smith, of North East Chamber of Commerce, said the promise of benefits far beyond London must be met and regional business had plenty to offer. “It is vitally important that we make sure they get the maximum chance to have the opportunities that are there and to take advantage of them.”

The Department for Culture, Media and Sport said North East firms had a tremendous opportunity with a London 2012 network set up to help firms make the most of the Games. “The onus is now on businesses to sign up and get the support they need in order to compete for contracts.”