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Commonwealth Games Organizers Exhaust Funds, Seek Back-Up Cash Supply

Commonwealth Games organizers "could be forced to dip into an emergency Scottish Government fund after draining" their own £46M ($77M) back-up cash supply, according to Jane Bradley of the SCOTSMAN. The contingency fund for next month’s Games -- supposed to be used only if “absolutely necessary” -- has now "been exhausted." A cash injection of more than £800,000 ($1.3M) from a fund "ringfenced by the government will need to be spent if further costs have to be met to fit out the Games venues." The official cost of the Games is said to stand at £563M ($945M). However, it is believed that transport, logistics and the preparation of the venues "had cost more than expected," forcing organisers to dip into the government’s £23.8M ($40M) Special Reserve fund, which is for use only in “exceptional circumstances” and requires First Minister Alex Salmond’s approval (SCOTSMAN, 6/9). In Glasgow, Chris Taylor reported Commonwealth Games chiefs said two weeks ago that £8.5M ($14.7M) "remained in the contingency account but have now admitted it is gone." MSP Hugh Henry, chairman of Holyrood’s Public Audit Committee, which is responsible for tracking event funding, "vowed to investigate the overspend." He said, “We want the Games to be the best ever but we must also make sure the public’s taxes are being used wisely.” About £100M ($168M) of the Games’ price tag "is being covered by ticket sales, sponsorship and merchandising." The rest is "paid by taxpayers," 80% of which comes from Holyrood and 20% via Glasgow City Council (DAILY RECORD, 6/9). The BBC reported a Glasgow 2014 spokesperson said "costs can change" as operational plans for the Games develop. The spokesperson said, "With just weeks to go until the start of the Games, we are entering the final stages of preparations and the majority of contracts are in place, aiding budget certainty" (BBC, 6/9).

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