Commonwealth Games 2014: Glasgow games face ‘real risk’ of overspend

THE Commonwealth Games face “real risks” of an overspend in the £524 million budget set aside to pay for their delivery, Scotland’s public spending watchdog has warned.

Audit Scotland says that the 2014 Games are largely on track, but it identifies four key areas where a risk of rising costs exists.

Security was a particular concern given the spiralling costs at previous sporting events, while the costs associated with the workforce, the athletes village and turning Hampden into a track and field venue are also highlighted.

Auditor General Robert Black said: “An event like this is always going to have risks. At this stage, the organisers are identifying and managing these risks but cannot eliminate them completely.

“The key risks are potential cost increases. Many aspects of the Games are still under development and therefore these costs are uncertain. The organisers aim to deliver the Games within the £524m budget, and to do this they will need to maintain tight control over spending and review their plans and budgets regularly.”

The Manchester and Melbourne Commonwealth Games, and the London 2012 Olympics, all set “unrealistic” security budgets which had to be increased.

Manchester’s security budget increased by £3m, contributing to a 120 per cent rise in the overall budget. Security costs at London 2012 have increased from £600m to more than £1 billion.

The report states: “Her Majesty’s Inspectorate of Constabulary for Scotland highlighted that there is a real risk that some elements of security costs will be higher than budget.

“It recommended that the Games security committee, led by the Scottish Government, commission work to understand these risks more fully. More work is needed to inform the procurement approach for security guards and equipment.”

Audit Scotland also found “particular risks” in delivering the athletes’ village and Hampden Park developments on budget and on time.

It stated: “They are due to be completed less than five months before the Games and there are specific financial and technical risks related to these developments. The partners are managing these risks but are unable to eliminate them completely.”

Hampden’s “innovative” raised playing field, designed to accommodate a track and field facility, has not been tested anywhere before and “therefore presents a risk of potential increased costs if unforeseen problems emerge”.

Overall, Audit Scotland found that the Games are progressing well, with 92 per cent of the milestones due for completion, and the rest “mostly insignificant”.

A Scottish Government spokesperson said: “The Scottish Government is committed to ensuring a safe and secure Glasgow 2014 Games and our security planning has sufficient flexibility to be able to respond to the security environment that may exist at the time of the Games.”

A Glasgow 2014 Organising Committee spokesman said: “We welcome Audit Scotland’s assessment that progress in planning for the Glasgow 2014 Commonwealth Games is on track.”

• In full: Audit Scotland report on Glasgow’s Commonwealth Games report

In full: Audit Scotland report on Glasgow’s Commonwealth Games report