OLY: SOCOG: More budget cuts loomimg

AAP General News (Australia)
02-02-2000
OLY: SOCOG: More budget cuts loomimg

Eds; Repeating to add dropped words in lead par



By Krystyna Rudzki, Olympics correspondent

SYDNEY, Feb 2 AAP - Another round of severe budget cuts looms for the cash-strapped
SOCOG which meets tomorrow to work out how to cut tens of millions of dollars from staging
the Sydney Olympics.

SOCOG has been foreshadowing and working on the budget cuts for months but tomorrow
is the first time they will be detailed in full.

With seven months until the biggest Olympics ever, SOCOG faces a $100 million sponsorship
shortfall.

Some relief is expected with a $50 million deal between the Australian Olympic Committee,
the International Olympic Committee and the New South Wales government.

The deal involves the AOC and the IOC returning about $11 million each to SOCOG and
the state government forgoing its projected $30 million profit.

While that deal has yet to be finalised, no party would want to take the blame for
it falling through.

With the permission of NSW Treasurer Michael Egan, SOCOG also can access a $50 million
contingency fund.

But even that won't be enough.

"I think there would have to be a third element which is the savings, finding savings
as well," said SOCOG chief executive Sandy Hollway last month.

"I don't think that any arrangements between the AOC, the IOC and the government or
any draw on the provision we make on the contingency ought to be a substitute for us continuing
to pare down on costs and spending."

"(But) I don't believe we can possibly find savings within SOCOG to cover our needs
without so seriously raising risks to the delivery of a fantastic Games or risking the
quality of the outcome."

Some cuts already have been made with executives Hugh Watson, Bill Swingler and Geoff
Bentley sacked two weeks ago and controversial ticketing boss Paul Reading fired last
year.

Ticketing marketing program chief Lisa Hickson also quit yesterday.

Hollway said SOCOG would try to limit job losses to future growth as opposed to retrenching
existing staff.

But it's likely staffing will be hit, further lowering morale.

The 16-day Games will cost $2.6 billion to stage, with $1.1 billion left to spend.

Of the amount not committed in contracts, SOCOG have between $250 and $280 million left
over.

AAP knr/hu/bwl

KEYWORD: OLY BUDGET NIGHTLEAD (REPEATING)

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