NVSC - Newham Voluntary Sector Consortium

Will the 2012 Olympics be “Fools Gold”?

June 13, 2008

Previous Olympic Games have brought no real benefits to local communities and there is every likelihood that London 2012 will go the same way - that's the worrying premise of a recent report from the New Economics Foundation and Community Links.

The report catalogues a series of failures at all the recent Olympics. At the Games in Athens and Barcelona job creation was temporary and left no overall increase in employment. As for homes, each of the four previous host cities saw house prices rise by more than the national average in the run up to the Games. Fine for current home owners but for those who rent accommodation the results can be disastrous.

At Barcelona new house prices rose by 250% - with the result that those in rented accommodation were forced out. At Sydney in 2000 rents soared and landlords evicted tenants. Newham has one of the highest levels of rent housing in London - so there is a real fear that the same problem will recur between now and 2012.

The Government's rose-tinted view that the Olympics will bring benefits to local communities is based on the discredited "trickle down theory" that massive investment in physical structures is bound to bring substantial spin offs to local people. But top-down regeneration rarely delivers on its promises to local residents.

Just look at Newham Docklands and the Excel Centre. Lavish claims were made that these developments would bring jobs, better homes and a range of other benefits but little of this happened.

Trickle down doesn't work

Despite the rhetoric surrounding the Games specific agreements on community benefits are scarce - and what commitments exist are not being developed in partnership with the community. Unless voluntary and community sector organisations intervene then Newham's communities will continue to be marginalised and despite politician's promises there will be no real community benefits from the 2012 Games.

NEF have a produced a 10 point plan aimed at producing a beneficial local legacy. Not all their proposals will be welcomed (some of the examples they give of potential partners stretch the definition of third sector to breaking point. They include some commercial organisations that do not have a good track record of working with, let alone, for local communities) but they have kicked off a debate which must now be broadened to all of the voluntary and community sector in Newham and East London.

Even before the London Mayoral election, the Olympic Delivery Authority retracted its pledge that 50% of homes on the Olympic Park would be affordable.

Unless we all do something about it this will just be one of a string of broken promises. It's time we started campaigning for a real say in what the Games will mean for East London and for firm pledges around jobs, homes and community benefits. This valuable report has produced some good ideas but now it needs to be backed up with action.

Fools Gold - How the 2012 Olympics is selling East London short and a 10 point plan for a more positive local legacy - contact: info@neweconomics.org for more details.

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