London Update -- City Gasps over Air Quality; U.K. Regions Bitter over Olympic Cash

London has until 2011 to meet European air quality standards or risk attracting criticism from Olympic teams over health concerns for their athletes. (Getty Images)London’s air quality does not meet European Union standards, the U.K. government admits.

Air in the city, where the 2012 Olympic Park is Europe’s largest public construction project, contains too many small particles from industry, building works and car exhaust, according to the Department for Environment, Food and Rural Affairs.

London has until 2011 to comply with the European standards, or risk incurring heavy fines as well as negative headlines as visiting Olympic teams begin to fret about possible health implications from competing in such polluted air.

Last year, U.S. and European Olympic teams went to great lengths to protect their athletes from possible damaging effects of Beijing’s notoriously polluted air – although there were no reported cases of athletes suffering during the Olympic or Paralympic Games.

EU regulations demand a daily average of no more than 40 micrograms of particles per cubic meter of air, and a daily level of 50 micrograms may not be exceeded more than 35 times a year.

Greater London had a daily average of 43.3 micrograms of particles in 2007 and exceeded 50 micrograms on 102 occasions. Seven other cities and regions in Britain also failed the EU air quality standards.

U.K. Regions Resent Money Spent on Olympics

Simmering resentment that the 2012 Games are diverting resources away from other regions of Britain has resurfaced. A parliamentary committee reveals that only four Olympic contracts, worth less than $250,000, have been awarded to businesses in Wales.

While labor unions across the country stage strikes over the use of foreign staff, it has emerged that nearly one third of workers in the Olympic Park are not U.K. residents, and that the police have made 136 arrests on the site of people suspected of being illegal immigrants.

But John Armitt, chair of the Olympic Delivery Authority, has maintained that the 2012 Olympic project will continue to be a major driver of the British economy.

“We are now one of the major certainties in terms of opportunities for work, training, and for jobs – not only for companies in London, but across the U.K., who will be part of the supply chain for delivering this,” Armitt told the Independent newspaper.

He predicted that the London Olympics, with its $15 billion capital budget, will account for as much as 5 percent of the U.K.’s gross domestic product in the next four years.

Other Olympic-related agencies have also been reporting a “2012 effect." More than 16,000 London businesses have signed up in the past year to an “online dating agency” for Olympic and local government contracts.

CompeteFor, an initiative by the London Development Agency, allows companies to register as potential 2012 suppliers online, notifying them of contracts as they are put out to tender. More than 45 percent of Olympic contracts awarded so far have gone to London companies, benefiting from almost $5 billion-worth of work which has been awarded by the ODA.

Illegal Immigrants among Olympic Park Workforce

Some firms already working on construction in the Olympic Park have admitted that they are not hiring locally in London, but are redeploying staff from other projects around the country that have been shut down because of the recession.

Figures published by London’s Evening Standard newspaper also showed that 29 percent of the 3,046 workers on the Olympic Park in December were from abroad. Of the 136 people on the Olympic site arrested by police on suspicion of working in the U.K. without permission, 16 were prosecuted and 11 deported.

The news prompted opposition party spokesmen to question security arrangements in the Olympic Park, and also raised again disquiet about the benefits to the regions of Britain of hosting the Olympics.

Answering questions from Olympics Minister Tessa Jowell admits Wales is set to lose nearly $100 million in Lottery money that is being diverted to pay for the Games. (Getty Images)MPs at the Welsh Affairs committee at Westminster last week, Olympics Minister Tessa Jowell conceded that Wales was set to lose nearly $100 million in Lottery money, as the cash is diverted to pay for the Games.

“One thousand Welsh businesses have registered as part of the electronic brokerage network but only four contracts have been awarded to Welsh businesses,” Jowell said, adding that in terms of value, “it runs to thousands of pounds rather than millions of pounds.”

‘Fuddy Duddies’ in Canterbury Reject $1 Million TV Screen

Elsewhere, London 2012’s efforts to give away money or equipment to help regional cities feel part of the Olympics seem to be struggling, at least in the ancient Kent city of Canterbury.

Canterbury Council has rejected the offer of being given a $1 million giant television screen – which could become council property after the Olympics for a mere $1.40 fee. The screen – part of a nationwide scheme to bring the Olympics to 60 towns and cities – would have shown 2012-related footage throughout the Games.

The offer was rejected by an 8-to-1 vote of the city’s executive. Jean Law was the only member in favor of the screen. “What a load of old fuddy duddies,” she said of her colleagues.

“Old fogeys we may be, but it's probably the right decision,” said council leader John Gilbey.

Law Firm Becomes Tier Three Sponsor

London 2012 appointed international law firm Freshfields Bruckhaus Deringer as the official legal services provider to the Games in its latest tier three sponsor announcement Tuesday.

Lawyers from Freshfields will provide the full range of legal services to LOCOG. The scope of its legal advice covers: property; venue use agreements; employment law; intellectual property, brand protection and sponsorship rights; general corporate and commercial advice; procurement and competition law; tax law and dispute resolution.

The law firm played a key role in the London 2012 bid. It drafted LOCOG’s shareholder agreement and worked on the interaction of key stakeholders with LOCOG and the Olympic Delivery Authority and on the legislative framework for the Games. Freshfields has continued working with London 2012 organizers since the British capital won the Games.

LOCOG now has four domestic tier three partners; the others are Adecco, Airwave and Boston Consulting Group. Seven domestic top tier sponsors and three tier two supporters are already on board.

BOA Reports $4 Million Overspend in 2008

The BOA hopes to generate significant funds from the sale of its headquarters in south London. (Getty Images)The British Olympic Association is operating with a $6 million bank loan after overspending by nearly $4 million in 2008.

The figures were released to sports governing bodies at a meeting last week, prompting speculation that BOA chairman Colin Moynihan’s expansive 2012 plan, under performance director Clive Woodward, may have to be scrapped.

Britain’s national Olympic committee approved the 2009 budget at the meeting, in the main because they expect to realize significant funds from the sale of the BOA’s headquarters in Wandsworth, south London – although with the downturn in property values, even that strategy may have flaws.

The BOA’s hope must be that the property, which has a historic building protection, may be attractive to their next-door neighbor – Rolling Stones frontman Mick Jagger.

Briefs…

… Olympic soccer venue Wembley will stage the 2011 Champions League final, UEFA, the European soccer body, announced last week. The European Cup match in May each year attracts the biggest worldwide TV audience for club soccer.

… British Triathlon has named Heather Williams as performance director through to 2012. She is joined by Canadian Joel Filliol as head coach.

Written by Steven Downes

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