THE OLYMPIC GAMES 2012

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Tourism chiefs have begun a scheme to rate hotels and guest houses under a single system. A blue quality rose will be the new national benchmark to guarantee good service and standards. It is hoped the new scheme will be operational in time for the 2012 Olympics. Under the new scheme, en suite bathrooms must be installed within two years for hotels to qualify for even one star, and crisp cotton sheets and a pristine mattress cover will be the standard. One-star hotels can change sheets once a week but five-star ones must change them every two days.

Even traditional B&Bs have been told to install the internet and broadband. The quality rose, which has been devised by VisitBritain, will cover all classes of hotel, guest houses, B&Bs, hostels, university campus accommodation, caravan and camping parks and serviced apartments. Shaun Woodward, the Tourism Minister, said that hoteliers had to “raise their game” in time for the London Olympics, which will generate an estimated £2 billion in extra tourism. Premises have to pay between £250 and £1,100 a year for the rose but it has benefits. Only premises with the award are on the VisitBritain website. (Source: Times Online, Jun/06)

Barnwell Primary School in Sunderland, is banning traditional races at its Sports Day over fears that the pressure of winning and losing could be too great for some pupils to cope with. Instead, children will now take part in a 'fit-for-fun day' with the three-legged race and the sprint relay replaced by aerobics and an inflatable assault course. Teachers at the school have introduced the alternative event hoping that it will enable the school's 260 children, aged between three and 11, to learn the importance and value of simply taking part in sport.

Kathryn Linsley, the school's Physical Education co-ordinator, said, "This is for the children who aren't as competitive and confident as others, but who can be active, without the threat of losing and the disappointment that comes with it. It is all to do with participation and getting the children involved in as many activities as we can, without the threat of competition. Some children hate sports days and dread it. With this alternative the threat isn't hanging over them and they can have fun. It’s not as competitive as a normal sports day, where they would take part in one or two races. With this there are more activities."

The move away from traditional games comes just 12 months after the Government appointed 20 competition managers in schools across the country to ensure that the country produces athletes capable of challenging for medals at the 2012 Olympic Games. As part of their role the managers must set up inter-school leagues and manage shared competitive sports programmes between schools. Is this the way to raise competitive contenders for future Olympics and Football World Cups? The sooner kids learn that all through life there are winners and losers, there really is no future for our country. (Source: Mail on Sunday, Jul/06)

The Treasury told organisers of the 2012 Olympics they must pay £1 billion VAT on building and staging the Games, a cost which was not built into the initial budget. It is refusing to back down on the bill, saying European rules on competition mean it cannot be seen to be aiding the 2012 organisers. London's bid team did not include VAT when they made their original submission for the Games to Olympic bosses.

The ODA and the Department for Culture, Media and Sport were expecting the cost would be waived by the Treasury but the Treasury says VAT must be paid on construction and infrastructure projects or Britain risks breaking European Union rules on state aid. The construction of the east London site, including the swimming pool and athletics stadium, is budgeted at £2.38billion but insiders fear that once building inflation is taken into account, VAT could add an extra £1 billion to the total bill.

Culture Secretary Tessa Jowell gave an assurance during the passage of the London Olympics Bill that VAT costs would be met. Her department says no EU rules would be broken because the Government is the underwriter of the Games and so the payment of VAT would be an "internal transaction". Unless the matter is resolved there are concerns London taxpayers, already paying a precept for the Games, will have to meet the additional costs. (Source: Mail on Sunday, Nov/06)

The cost of the 2012 London Olympics could rise to nearly four times the original figure. The Treasury and the Department for Culture, Media and Sport are discussing a price of £9bn, up from the £2.35bn set out in London's bid document. The government believes construction alone could cost £3.3bn, with an extra £2bn allocated as a contingency fund. Regeneration costs of £1.8bn and a £1bn VAT bill have also been added. Security costs have also risen to at least £900m.

In the wake of heavy criticism of the government's handling of the games, Culture Secretary Tessa Jowell admitted to parliament in November that the cost of the Games would rise by 40% from £900m to £3.3bn. Critics have continued to express wide-ranging concerns about planning, over everything from transport to the burden on the tax payer and effect on the National Lottery's funding of good causes in order to meet costs.

The Treasury's insistence on how the budget is drawn up is thought to have considerably added to the costs of the games. It is understood it now insisting a 60% contingency should be to be added to the construction cost but this figure has been resisted both by the Mayor of London Ken Livingstone and also the DCMS. Both of them would like a much lower contingency, a view that appears to have support from CLM, the Delivery Partners.

A variety of other factors are also at play. These include rise in commodity prices, adjustments to transport figures to reflect 2012 prices and a revised estimate for inflation on construction costs. The land in the east end of London chosen for the site also needs decontamination and major remedial work before it can be fit for the games. The Treasury has also decided that the Olympic Development Authority will have to pay VAT. While VAT is in effect paid to the Treasury, the cash initially still has to be found before it is reclaimed.

Ken Livingstone has announced that Londoners will not have to pay the rising costs for hosting the 2012 Olympic Games. The London Mayor announced he was freezing the Olympic element of the council tax precept at 38p a week for the average council tax payer. Londoners are expected to contribute £625m to the cost of the games. He said, "Next year there will be no increase in the 38 pence payment and my commitment is that it will remain the same the year after that and in every succeeding year." (Source: BBC News, Feb/07)