аЯрЁБс>ўџ 79ўџџџ6џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅСq` №П$bjbjqPqP .0::ѕ%џџџџџџЄќќќќќќќjДІ І І 8о ђ Жю  "4 4 4 4 4 4 5777777$Єh †[ќ4 4 [ќќ4 4 pхххpќ4 ќ4 5х5ххќќх4  p%DОЋЩІ qpх5†0Жх’сˆ’х’ќхP4 6j”хўDBП4 4 4 [[i|4 4 4 Жd‚ $‚ 4D"fќќќќќќџџџџ Glasgow Games on a Shoe String Margaret Cuthbert Jim Cuthbert. June 2008. On 29th November 2007, three weeks after the announcement that Glasgow’s bid to host the 2014 Commonwealth Games had been successful, David Marshall, the former MP for Glasgow East, scored an own goal for Labour by asking a parliamentary question about the Games. The question asked what lottery funding would be made available for the hosting of the Games. The answer from Gerry Sutcliffe of the Department of Culture, Media and Sport was “National Lottery grant making decisions are made independently of Government by the lottery distributing bodies. I understand that Glasgow’s Candidate City File for the 2014 Games set out the various revenue streams that were expected and that this did not include any revenue from the lottery.” The implication of this answer is clear: as regards any supplementary funding for the Commonwealth Games from the lottery, forget it guys, you are on your own. But what about help from central government if extra funding is required for the Commonwealth Games? Labour’s position on this is also pretty clear, given the following quotation from the bid document put forward by Glasgow under the tenure of the previous Labour administration in Scotland. “Her Majesty’s Government will contribute as necessary where action is required in the small number of applicable policy areas not devolved to the Scottish Executive.” In other words, Labour clearly envisages that the Games will be funded primarily from Scotland’s devolved budget with no lottery support and very limited support from Westminster. Labour would probably justify this position on the grounds that Glasgow’s bid for the Games was fully costed, and there is therefore no need to consider the contingency of further funding being required. However, experience tells otherwise. Major sporting events are notorious for over–running their original budgets: and the former Labour administration in Scotland was notorious for its getting cost estimates badly wrong – look no further than the Scottish parliament building and free personal care for the elderly. Realistically, the likelihood is that extra funding will be required for a successful Commonwealth Games: and on the basis of the above indications, Scotland is likely to get no help in these circumstances from either the lottery or Westminster. Now contrast this with the other major sports project being organised just now in the UK – the Olympics. The original costing for the Olympics bid for London 2012 was just over Ѓ4 billion, to be met by Ѓ3.4 billion in public funding, (which includes a substantial lottery element), and an anticipated Ѓ700 million from the private sector. However, within days of London’s successful bid, it became clear that the original costings were gross underestimates. Important costs like VAT and information technology had just been forgotten: the cost of works has been escalating: and the likely contribution from the private sector has been shrinking. The latest estimate for the total cost is over Ѓ9 billion and rising. According to the National Audit Office, the increase in public sector funding for the Olympics is already Ѓ6 billion. The Government at Westminster, however, has apparently had little trouble in finding this increase through a combination of diverting money from other central government funds together with a major raid on the lottery. If anyone doubts that the benefits of the Olympics will accrue primarily to England, it is worth pointing out that only 3% of Olympic supply contracts have so far gone to businesses in Scotland. What should we in Scotland make of all this, and of the problems that Scotland is likely to face if the Commonwealth Games costs increase? We should make it clear first of all that we regard it as perfectly proper that Scotland did bid for the Games, and we hope that Scotland will take great credit from their success. Any country which, like Scotland, aspires to full nationhood, should be able to take this type of decision. However, it is clearly wrong that Scotland finds itself in as exposed a position as it appears to be in if the Games run over budget. We have to remember that the Scottish Government has no contingency fund of its own: uniquely among world governments, no borrowing powers: extremely limited tax raising powers: and no ability to mount a lottery without the specific authority of various Westminster Lottery Acts. Clearly, something needs to be done. The first priority is surely to clarify what funding implications the Olympics themselves have for Scotland. This relates to the status of the Olympics, which is at the same time both a major project of national importance, and is also designed to have a large specific local impact in regenerating the East End of London. There is a strong case for arguing that the funding required for the local impact element of the Olympics should be Barnetted, and hence generate Barnett consequentials. Logically, this would fit in well with the local regeneration element of the Commonwealth Games, which are meant to have a transforming effect on the East of Glasgow. It would also provide some appropriate compensation if, as seems likely, the government’s raid on the budgets of Westminster departments to fund the Olympics cost increases has generated negative Barnett consequentials for Scotland. The first priority is to bring all these issues, which are currently shrouded in secrecy, out into the open. But the question of whether certain expenditure on the Olympics should be Barnetted or not is by no means the main issue. The key thing that is wrong with the present set-up is the lack of symmetry with which the Olympics and the Commonwealth Games are being handled. As regards the Olympics, Westminster acts as both the local “English” parliament, and also as a UK “federal” parliament: this means that, since the English parliament can use its federal powers to bail itself out of the consequences of its own mistakes, it is never likely to run into serious trouble. As regards the Commonwealth Games, Holyrood has to appeal to a separate and unsympathetic parliament when it comes to serious funding issues: by and large, it is having to cope on its own with the very limited powers at its disposal. If the UK were going to be made to work properly on issues like this, what would be required would be a complete separation between “English national” and “UK national” issues, with separate bodies handling the key decisions at these different levels: that is, what would be required would be an explicit move towards some form of federalism. However, given that any immediate move in such a direction appears most unlikely, the probability is that if, (one might almost say when), funding problems arise with the Commonwealth Games, then an appropriate framework for handling these will not be in place. If the English/Westminster parliament then sticks to its line of “you are on your own guys” as regards Commonwealth Games funding, they are likely to find that Scotland will wish to be on its own in other respects as well.     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