Jowell keeps open mind

The Government has not set itself against London hosting the 2012 Olympics, the Culture Secretary Tessa Jowell maintained yesterday. Opening a Commons debate on the subject, Jowell reiterated her view that those seeking to bring the Games to the capital had a "powerful sporting case'' and added: "The arguments are finely balanced... the Government is open minded.''

Addressing one of the key concerns voiced by the Prime Minister, the Secretary of State insisted that London was: "A great city, truly a world city, the match of any of the likely competition.'' But she acknowledged likely opposition from New York, Paris and Moscow, and warned that there would be competing demands from education and health projects.

Jowell's comments followed a day of lobbying hoping to persuade the Government to seek the first Olympics in Britain since 1948. The Cabinet is due to take a decision on 30 January.

Earlier, the chairman of the British Olympic Association, Craig Reedie, had told a Department of Culture, Media and Sport select committee that London stands a "more than reasonable chance'' of earning the International Olympic Committee's vote when it awards the 2012 Games in July 2005.

That feeling was enforced by comments from the IOC president, Jacques Rogge, who said London would have a "strong" chance of hosting the Games.

The budget for a London Games has been the subject of some discussion. The Government claims it will cost double the £1.79bn estimated in the independent Arup Report, but a spokesman for the BOA pointed out the Government was factoring in likely inflation to 2012, which would be balanced by likely income and surpluses. The Arup Report claims that expenditure would be matched by benefits to the economy.

The select committee chaired by Gerald Kaufman heard from the five-times Olympic rowing champion Sir Steve Redgrave that the Government "cannot put a price" on the positive impact hosting the Games would have upon the country. Asked how the Games would effect Britain's sporting youth, Redgrave drew out one of the Olympic gold medals he takes with him as he tours the country talking to schools and businesses. "The Olympics have an inspirational effect on people you can't measure,'' he said.

But Kaufman insisted the Government would need to promise significant financial backing for the project to be viable. Frank Doran, MP for Aberdeen Central, admitted that London may suffer for the government's poor showing in organising major projects. "The difficulty,'' he said, "is our own track record in this area – Wembley, Picketts Lock, the World Athletics Championship bid for 2005 and the Millennium Dome.''