Saturday, July 18, 2009

CLM, cost controllers for London Olympics, paid £151 million last year

Consultants tasked with keeping the bill for the London Olympics under control cost the taxpayer £151 million last year, including a £60 million bonus, it was revealed yesterday.
CLM, a consortium of surveyors overseeing the £8.1bn Olympic construction project, received the fee in a year when the taxpayer was forced to bail out the Athletes’ Village and the media centre after the collapse of a private financing deal.
The amount was nearly double the £87 million previously paid to the consortium, which includes Laing O’Rourke, the developer, Mace, the British management company, and the programme manager CH2M Hill.
The size of the fee emerged as Olympic chiefs awarded themselves generous pay rises, with three years to go until the start of the Games in 2012.

Staff at the Olympic Delivery Authority (ODA) shared £30 million, including £2 million of bonuses, according to the annual report for the year to March 31.
David Higgins, the chief executive, took home £537,000, although he bowed to the prevailing public mood and deferred half of his annual £210,000 bonus until 2012.
The Australian is still one of the best-paid public sector employees in Britain. Hugh Robertson, the Tories’ Olympic spokesman, said: “He’s doing an extremely good job but in the current climate everybody in the public sector must be aware of the need to bear down on bonuses and expenses.”
Mr Higgins and seven fellow directors collectively claimed £100,000 in expenses. Howard Shiplee, director of construction, was the highest spender, claiming £19,343, including £11,478 on hotels and nearly £2,280 on taxis.
Tom Brake, the Liberal Democrat Olympics spokesman, said: “These bonus and expenses arrangements are from a different era. We are now in tougher times where costs have to be more tightly controlled.”
The figures were released on the day the outer shell of the £547 million Olympic stadium was completed.
Olympic chiefs justified their pay because the complex 2012 project remains on schedule and on budget despite the recession.
John Armitt, the chairman who earned £250,000, said: “We have hit all, and exceeded some, of the ten milestones we set ourselves last year.”
By 2012, the estimated total paid to consultants will have reached nearly £680 million. Ministers have argued that the sum will prove value for money if there are no delays to the building programme.
The closer the completion deadline, the more quickly costs tend to escalate.
An ODA spokesman said: “We are not talking about consultants in suits. These are very experienced engineers, planners and construction experts who have worked on several Olympic Games. CLM’s contract is also heavily incentivised. Every penny earned is dependent on meeting strict performance measures tied to delivering on time, to budget and to a high standard.”
However, taxpayers may baulk at the cost, after they came to the rescue of two of the biggest venues on the Olympic Park. In May, the Government approved a further injection of £324 million into the £1 billion Village, which will house 17,500 athletes and officials during the Games, bringing public investment in the project to £650 million. The £355 million media centre had already been nationalised after private financing failed to materialise.
Ministers have insisted that the overall £9.3 billion public sector budget for the Olympics will not be exceeded.
The latest accounts revealed that the ODA wrote off £7.5 million in design and professional fees for work on the media centre. It also bore the cost of £2.5 million in legal fees incurred on behalf of Lend Lease, the property developer that pulled out of the Village financing deal.
A further £1.1 million in design fees were written off when the site of the canoeing venue was changed.
Source:The times

Max Mosley will not stand for re-election as FIA president

Max Mosley has confirmed he will not stand for re-election as FIA president later this year.
Mosley had previously suggested he would keep his options open after becoming infuriated by comments made by Luca di Montezemolo, the Ferrari president and Fota chairman, in the wake of a peace pact being agreed between motor sport's world governing body and the Formula One teams three weeks ago.
But in a letter sent today to all FIA members, Mosley has made it clear his 16-year reign will come to an end in October this year and proposed Jean Todt, the former Ferrari team principal, as his successor.
The 69-year-old has revealed he received 100 messages of support urging him to stand again, citing them as "deeply rewarding" and for which he was "very grateful". "From a personal point of view it would be very difficult for me to change my mind and stand again," Mosley said. "I began some months ago to re-arrange my family life with effect from next October. I also informed senior FIA staff I would not be a candidate.
To continue now would greatly complicate my domestic arrangements and be inconsistent with my obligations to my family, particularly after our recent loss. Also, I have felt for some time I would like to work less. After all, I will be 70 next year.
"Therefore, with these new arrangements in place, extremely grateful though I am for all the letters, emails and messages I have received, I have decided to reconfirm my decision. I will not be a candidate in October."
Mosley, who will continue to have a place on the FIA Senate, has decided to offer his full support to Todt. "I believe the objectives of those who have been kind enough to support me can be achieved if you elect a strong, experienced and competent team, one which will maintain the independence of the FIA, and ensure both the sport and mobility side are properly run.
"I believe the right person to head that team would be Jean Todt. Jean is unquestionably the outstanding motorsport manager of his generation, and arguably of any generation.
"If he agrees to stand, I think he would be the ideal person to continue, but also to extend the work of the past 16 years. He can be relied on in all areas where the FIA is active. I very much hope you will give him your support."
Mosley also dismissed suggestions Todt would be neither impartial nor independent given his background. "I must emphasise, he would not in any way be a motor industry candidate," Mosley said. "He would have no special relationship with his former company, Ferrari, nor with Peugeot Citroen, the manufacturer behind his former world rally, cross-country and Le Mans teams. He would preserve the independence of the FIA."
If Todt decides to stand he will be up against Ari Vatanen, the former World Rally champion, after the 57-year-old Finn announced his candidature last week.
Source:The times

England turn screw on Australia at Lord's

Graham Onions claimed two wickets in three overs as England secured a 210-run first-innings lead - but they opted not to enforce the follow on in today's second Ashes Test.
The Durham seamer claimed two for nine in three overs on the third morning as Australia, who resumed overnight on 156 for eight, trailing by 269 runs needing a further 70 to avoid the follow-on, were dismissed for 215.
Onions' display, which ended the stubborn resistance of Nathan Hauritz and Peter Siddle, provided England with the option of making Australia bat again but captain Andrew Strauss instead decided to have another go in batsman-friendly conditions as the hosts attempt to establish a match-winning lead.
Off-spinner Hauritz, unbeaten on three overnight, demonstrated his capabilities with the bat at an early stage by steering James Anderson down to third man for four in the second over of the morning.
He was, however, given an early reprieve when he steered a short ball from Stuart Broad to Alastair Cook at short leg on 11, but the Essex left-hander was unable to claim the sharp chance.
To increase England's frustration, Siddle claimed two more boundaries in the next over, driving down the ground and past gully as Anderson conceded 13 from his first two overs of the day.
Twice Siddle edged just short of Paul Collingwood at third slip in Anderson's next over, but England were unable to claim the early breakthrough as Australia edged closer to the follow-on target.
Strauss decided to turn to Onions as a replacement for Anderson from the Nursery End in a desperate attempt to claim a wicket, but he also suffered immediate frustration when Hauritz guided his first ball through gully for another boundary.
But Onions claimed his revenge two balls later when he tempted Hauritz into pushing outside off-stump and this time he edged to Collingwood at third slip, who claimed the catch above his head.
Hauritz had contributed 24 vital runs to a stubborn 44-run stand in only 45 minutes, but departed the crease with Australia still 32 runs away from saving the follow-on as last man Ben Hilfenhaus walked out to bat.
Hilfenhaus immediately frustrated Onions by playing and missing three times in the same over before getting off the mark with a drive through the covers for four.
Just as Australia edged within sight of saving the follow on, needing just 11 to reach their target, Onions struck again to end the innings when Siddle edged to Strauss at first slip.
Source:The times

Tom Watson rolls back years to lead Open

Five times champion shoots third-round of 71 to lead by one shot from Ross Fisher and Mathew Goggin in The Open.
A YEAR after 53-year-old Greg Norman headed the field going into the final round of The Open, another veteran champion has taken centre stage. Tom Watson, 59, holds a one-stroke lead over England’s Ross Fisher and Australian Mathew Goggin at Turnberry, scene of his greatest triumph 32 years ago.
The five-times Open champion began the day tied for the lead with fellow American Steve Marino. However, he had dropped three shots by the time he reached the 16th and his improbable challenge appeared to be fading. Yet, just as he had done on Friday, Watson rattled in a long putt for birdie and then picked up a further shot at the next hole. A par at the 18th gave him a round of 71 and put him on four under par for the tournament. If he wins today, he would become the oldest player in the modern era to win a major championship, easily topping Julius Boros, who won the 1968 US PGA title at the age of 48.
Watson’s last Open victory was at Birkdale in 1983, though he retains most affection for this course, scene of his dramatic Duel in the Sun with Jack Nicklaus.
On a day that saw England on top against Australia at Lords, it was honours even between the two countries at Turnberry. Fisher, from Wentworth and Tasmanian Goggin are on three under par, with Lee Westwood just a shot back.

Fisher had said he would abandon his challenge and leave the course to fly home immediately if his wife went into labour with their first child. However Jo Fisher, now five days overdue, had shown no signs of going into labour yesterday.
Her husband enters the final day with an outstanding chance of becoming the first Englishman since Nick Faldo in 1992 to land a major. Both he and Westwood arrived on the Ayrshire coast in form and have looked the two best strikers of the ball over the first three days. Had either holed more putts, he would have had a clear lead this morning.
Goggin started three shots back before a third round of 69 that had put him out front on his own, only for Watson’s late surge to leave him in a tie for second. Again, the wind and the course had the upper hand over the players. Only five broke par and just American Bryce Molder, with a 67, shot lower than Goggin.
Sunshine and showers are predicted today and it could be that those players who make par will move forward.
Source:The times

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