Dcms aims to improve the quality of life for all through cultural and sporting activities, to support the pursuit of excellence and to champion the tourism, creative and leisure industries




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London 2012 Olympic and Paralympic Games

Quarterly Report

May 2011


Contents


DCMS aims to improve the quality of life for all through cultural and sporting activities, to support the pursuit of excellence and to champion the tourism,
creative and leisure industries.



1 Foreword 3

2 Inspiring enthusiasm for sport 4

3 The Games for growth 6

4 Business stats 9

5 Jobs and skills opportunities 10

6 Jobs and skills stats 13

7 Quarterly budget update 15


Foreword


In the last three months Olympic tickets have gone on sale and the construction of the Velodrome and Olympic Stadium have both been completed. Operational issues are now at the forefront of London 2012 planning and public support, and excitement, as evidenced by the demand for tickets, remains strong.


The delivery of a safe and successful Olympic and Paralympic Games in 2012 is a key priority for the Government. The overall funding package for the Games remains at £9.298bn, with some of this funding made available from April to cover operational cost as the project’s focus shifts from construction to operational delivery.


All the venues and infrastructure are taking shape, with 83 per cent of the Games-time construction programme now complete. Members of the GB cycling team, including Sir Chris Hoy and Victoria Pendleton, were full of praise for the high speed Velodrome track when they tested it out in February on its handover to the London 2012 Organising Committee (LOCOG). Olympic medallist Frank Fredericks was equally impressed with the Olympic Stadium as he laid the last piece of turf alongside other members of the International Olympic Committee (IOC), marking the flagship venue construction completion.


We continue to seek value for money and cost savings in our day-to-day running of the project. Through a combination of further savings achieved in the quarter together with reducing risks, the overall Anticipated Final Cost of the Olympic Delivery Authority (ODA) programme has reduced by £35m to £7.266bn.

The 2012 Games will leave a significant economic, social and sporting legacy for the UK. A key part of this legacy is our support of businesses, creation of jobs and skills development. At the end of March, over 12,000 people were working on the Olympic Park and Athletes’ Village, and around 1,400 companies had directly supplied the ODA. The Government, through UK Trade and Investment (UKTI), is working to promote British companies through its Springboard to Success directory, with a view to helping them win work helping to put on major sporting events.

The shape of a significant sports legacy is now clear. London 2012 is delivering a raft of new elite sports facilities, sustained funding for Olympic and Paralympic sports and world class sports events hosted in this country before and after the Games.


On top of that there will be community facility improvements through the Places People Play programme, ongoing support for International Development through International Inspiration and the new School Games which will give young people the chance to experience genuine sporting competition with more opportunities for disabled children.


The launch of Olympic ticket sales coincided with 500 days to go to the Games and the unveiling of the countdown clock in Trafalgar Square. We have seen unparalleled levels of interest, from people right across the UK and around the world to come and see the Games and hope for the same response when Paralympic tickets go on sale later this year.


With just over a year to go, the project is in good shape but there is no complacency. We will be staging the two biggest sports events in the world next summer – the Olympic and Paralympic Games. There will be big challenges ahead as we undertake the biggest peacetime logistical exercise ever staged in the UK. We can however approach them with confidence based on a strong track record of success to date.


Hugh Robertson MP

Minister for Sport and the Olympics


Inspiring enthusiasm for sport


Children from across the country are being encouraged to feel part of the London 2012 Olympic and Paralympic Games by taking part in the School Games.


This new national school sport competition will work alongside the London 2012 Organising Committee’s Get Set educational programme, which is already being used by thousands of schools across the UK to teach young people about the Olympic Values of respect, excellence and friendship, and the Paralympic Values of inspiration, determination, courage and equality.


The School Games is at the heart of the Government’s plans to create a lasting sporting legacy from the London 2012 Games and will run for many years to come. It will give young people the chance to experience genuine sporting competition with more opportunities for disabled children and a cultural element reflecting the traditions of the Cultural Olympiad and Opening Ceremony.


Competition will start within schools leading to district, county and city level, and then on to the national finals. The first national finals will be in May 2012 at the Olympic Park, giving School Games finalists the chance to compete in the world class arenas before the Games begin.


The Games will be run by the Youth Sport Trust and funded by Sport England, the Department for Education and the Department of Health, including funding for hundreds of School Games Organisers who will help schools get more of their pupils taking part in competitive sport.


The London 2012 Organising Committee is providing more than 100,000 donated tickets for pupils in schools in London and across the UK, through Ticketshare. These have been funded by a levy on hospitality packages.


The Games for growth


Growth is central to the Government’s strategy for tackling the deficit. The 2012 Olympic and Paralympic Games are supporting the Government’s Plan for Growth, by providing opportunities for business across the UK; enabling UK businesses to maximise opportunities for export; and helping to boost the number of visitors to the UK.


ODA and LOCOG procurements continue to provide business opportunities for companies across the UK, in particular the SMEs which benefit from supply chain opportunities. In addition to the London 2012 supply chain, CompeteFor is increasingly being used by other public sector buying organisations including the Olympic Park Legacy Company (OPLC), Crossrail, Transport for London (TfL), the Metropolitan Police and Westminster City Council. To date, almost 140,000 businesses are registered nationally on CompeteFor, and at least 49,000 have had ‘light touch’ support from their local business support provider and around 8,000 of these have had ‘intensive support’. Over 8,500 business opportunities have been made available and the website used by over 950 buying organisations – of which around 90 per cent are from the private sector.

Some 100 companies that have worked on the 2012 Games have had their achievements highlighted in the first edition of Springboard to Success which was launched by UKTI, the ODA and LOCOG at Sport Accord.


The directory showcases 400 UK companies specialising in major infrastructure and sporting project supplies – who have won contracts at domestic and international sporting events including London 2012, with a view to helping them win more work in this billion pound sector. For example, it has been estimated that the value of projects around the 2014 World Cup and 2016 Olympic and Paralympic Games is in excess of £50bn.

The next two years provide a golden opportunity for the tourism industry. The Government’s Tourism Policy, published in March, aims to help the tourism industry achieve its potential for growth through a range of measures including creating a sustainable new model for destination marketing and management, taking advantage of the series of major events which the UK is due to host over the next few years. The strategy builds on the marketing plan launched in January, through which we are looking to create a marketing fund of more than £100m. Major companies have already pledged support to help match the £50m of public money the Government has committed through VisitBritain. This initiative aims to generate four million extra overseas visitors over the next four years bringing in an extra £2bn worth of visitor spend and helping to create 50,000 new jobs across the country.


Case study

Icon points the way in export markets


London-based branding specialist Icon has been making a name for itself across the globe with help from UKTI.


The company has won contracts for top international sporting events, such as the 2010 FIFA World Cup South Africa, and assisted a number of cities with hosting bids for Olympic Games.


The company has received strategic support from UKTI London, under the Passport to Export and Gateway to Global Growth programmes, tapping into the knowledge and expertise of UKTI trade advisers both in the UK and overseas. Icon has also participated in many international trade missions with UKTI, including visits to China and Canada, and exhibited at the 2010 Soccerex Global Convention in Rio de Janeiro at the end of November. Now it has its sights set on the 2014 FIFA World Cup Brazil.


Andrew Hodson, Icon’s Sales and Marketing Director, said: “UKTI has played a significant role in helping us to extend our international reach. We have worked closely

with our UKTI International trade adviser and with other UKTI staff overseas, who have provided us with invaluable insights into international markets. UKTI has also given us access to important contacts in the markets we wanted to expand into.”


For the 2010 FIFA World Cup South Africa, Icon was responsible for the design, production and delivery of the branding, wayfinding, media backdrops and general signage for all 10 tournament stadiums, as well as providing city, hotel, transportation and airport branding and signage.


In 2011 Icon will continue its work for major football tournaments when it will provide the branding and wayfinding signage for the FIFA Women’s World Cup in Germany.


Icon also boasts an impressive list of Olympic credentials. In 2005, it completed the branding and signage work for London’s 2012 Olympic and Paralympic Games bid, and helped the Russian city of Sochi with its bid for the 2014 Winter and Paralympic Games.


Case study

Building for the future


Wood Newton, based in Huthwaite in North Nottinghamshire, is one of many businesses in the region that is benefiting from the Games. Its turnover has increased considerably since securing London 2012-related contracts. Wood Newton specialises in providing high quality external facades. The company has secured the contract to manufacture and install the external timber facade and composite timber roof of the distinctive double-curved structure of the Velodrome, which has been designed to reflect the geometry of the cycling track. Wood Newton is supplying and fixing thousands of square metres of western red cedar and birch-faced composite timber panels, along with other fixtures and fittings such as roof lights, as part of a multi-million pound contract.


Business stats


72%

72% of CompeteFor contracts awarded have gone to small and medium sized enterprises (SMEs).


49,000

Since registering on CompeteFor, at least 49,000 businesses across the UK have received ‘light touch’ support from their local business support provider and around 8,000 of these have received ‘intensive’ support.

8,500

Over 8,500 business opportunities have been made available to potential suppliers through the CompeteFor website to date.


98%+

More than 98% of the ODA’s suppliers are based in the UK.


1,400

Over 1,400 companies have directly supplied the ODA so far.


Jobs and skills opportunities


The ODA continues to provide crucial employment opportunities. The combined workforce of the Olympic Park and Athletes’ Village by the end of March stood at 12,635. Meanwhile LOCOG is ramping up its own recruitment looking to Games-time. It will require a workforce of around 200,000 people, including 6,000 staff, up to 70,000 volunteers and up to 100,000 contractors.


LOCOG now has over 1,000 employees and expects to double in size by early 2012, with a further 4,000 short-term contract roles thereafter. The procurement process for contractors was launched at the end of 2009 and most of the contracts will be awarded by the end of 2011. LOCOG’s main ‘people’ contracts will be in catering, cleaning and waste management, security, transport, venue overlay, stewarding and retail.


LOCOG has set targets of 15-20 per cent of the workforce coming from the six Host Boroughs and 7-12 per cent being previously unemployed. In order to meet those targets, LOCOG is working in partnership with the London Development Agency (LDA), Greater London Authority (GLA), Jobcentre Plus and the Host Boroughs using existing networks and programmes designed to help people access opportunities. LOCOG also works with each new contractor to reinforce the need to ensure that the candidates furthest away from the job market have the best chance of accessing Games-time opportunities.


After the Games, LOCOG will work with Jobcentre Plus and Adecco (the official recruitment services provider of the Olympic and Paralympic Games) to ensure that people get appropriate support to help them find new employment opportunities.


Case study

The London 2012 Jobs Board


Adecco has contributed to the lasting legacy of the London 2012 Olympic and Paralympic Games by creating a job board showcasing the employment opportunities generated through the official contractors, suppliers and sponsors of the London 2012 Games. The Adecco website – jobsforthegames.co.uk – complements the official London 2012 website and includes special features such as interview tips, job alerts and career tools. The website is already open for people seeking jobs to pre-register their interest and use the career tools, and the first jobs are expected to be advertised from the end of April. Jobs for the Games will also provide a platform to showcase and highlight individual candidate success stories, the breadth of Games opportunities and ‘day in the life experiences’ gained through working for official London 2012 contractors or suppliers.


Case study

Women into Construction Project


Cherrell Sobers achieved a first class degree in Business Studies and was looking to work in Human Resources. She was struggling to find a job and was working part-time in a discount retail store when she met the ODA team at a careers fair in Hackney and registered with the London 2012 Women into Construction project. Cherrell’s long-term goal was to work and gain experience within a functional HR team. The Women into Construction Project found her a 13-week placement with an HR department based in the Pudding Mill Lane offices.


At the end of the placement, Cherrell’s mentor helped her to look for further jobs on the Park. After attending an interview with a contractor working on the Handball Arena, Cherrell was offered an Administration Assistant position for six months, until the end of the Project. Cherrell is now working as an Administrator/Document Controller on the landscaping project. Cherrell said: “This was a great opportunity to see what it’s like to be on a construction site and see the development of one of the venues. I also gained experience working with many subcontractors and seeing how many people it takes to come together to achieve one goal.


“I have done this all in a space of a year and I have enjoyed every second. This would have never happened if it wasn’t for the London 2012 Women into Construction Project – Thanks!”

Jobs and skills stats

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