Legacy of Glasgow Games in jeopardy as funding cut by half

Clyde Gateway, the firm charged with a major overhaul of the area, said it is to lose millions of pounds promised to it by Scottish Enter-prise, which it claims will hit future projects.

Officials have insisted that the Games themselves are not in danger and the Scottish Government insists that "funding priority" will be given to Clyde Gateway to support the event's successful delivery.

But Clyde Gateway said that funding due to be doled out to it and five other urban regeneration companies, was being slashed by 46 per cent. The agency said that it had been "anticipating" 7.5 million from Scottish Enterprise on the basis of a "legal agreement" but had now been told it would share a pot of 6.8m with the other firms.

Jim Clark, senior manager at Clyde Gateway, said: "While the Commonwealth Games main venues and athletes village are not in any danger, the long-term legacy from the Games to bring jobs and prosperity for local residents in Glasgow's East End is under real threat.

"Our aspirations to bring jobs and industries to a number of sites that have lain vacant and derelict for decades will be delayed and it will be incredibly difficult to plan for meaningful long-term regeneration and development."

The funding which the organisation receives goes towards projects such as acquiring sites in the area and developing them. These include the former Dalmarnock power station, which has been lying derelict since 1979, but where a clean-up is due to get under way next week.

Councillor George Redmond, a Clyde Gateway Board member, said: "What Scottish Enterprise has done here is effectively abandon the east of the city, prospects for our young people, 2014 and the M74 extension."

Clyde Gateway has been told it will get about 18m for 2011-12 from the Scottish Government and Scottish Enterprise, but has no assurances about future funds.

In a statement, the body added: "It would be accurate to say that some of the longer-term economic development projects we saw as being key to success are in jeopardy."

A spokeswoman for Scottish Enterprise said it had to look closely at its priorities for next year. "The Glasgow Commonwealth Games in 2014 offers enormous opportunities and we recognise that we need to invest now if we are to fully exploit these opportunities for the benefit of Scotland," she said.

"In recognition of this and of the important contribution that urban regeneration companies make to the economy, we have agreed to invest 6.8m to support their activity in 2011-12."

A Scottish Government spokesman a total funding package of more than 25m had been secured for the urban regeneration companies in 2011-12 and Clyde Gateway will get "funding priority" to deliver the Games."Glasgow is already beginning to see the benefits of hosting the Games through the construction of the National Indoor Sports Arena and athletes village in the East End which will leave a revitalised community with new facilities as a physical legacy."