November 16 - The cost of staging the 2014 Commonwealth Games in Glasgow has risen by £81 million to £454 million, it has been confirmed today.


Officials blamed blamed the increase on rising broadcasting and legislative costs.


It is feared the sale of broadcasting rights will fall millions of pounds short of what was estimated and extra costs will be needed to support the transmission of high-definition television (HDTV).


The BBC paid £20 million to broadcast the 2002 Commonwealth Games in Manchester but have still to reach an agreement with Glasgow about if they plan to bid for the event in 2014 and, if so, how much they are willing to pay.


The Scottish Government will provide an additional £39 million and a £20 million reserve fund, Glasgow City Council will contribute an extra £9 million and the organising committee will raise an additional £13 million through commercial activities.


The cost of staging the Games when the bid was submitted was £373 million.


Lord Smith, chairman of the organising committee, said the need for additional cash - revealed yesterday by insidethegames - was identified after a year of detailed planning and a thorough review of the budget.


He said everyone on the committee recognised the "responsibilities upon us to deliver an efficient and effective Games, minimising the cost to the public purse in these difficult economic times".


The committee said the review had been verified by financial adviser PriceWaterhouseCoopers.


First Minister Alex Salmond said the Scottish Government was committed to showcasing the best Scotland had to offer by delivering an outstanding Commonwealth Games.


He said: "This necessary budgetary increase is challenging for the public purse, but the funding boost is good news for 2014 and will ensure an exciting, efficient and effective event.


"The fact 70 per cent of the Games venues are already built will help guarantee no further pressure on the public purse."


Salmond (pictured) claimed he believed staging the event would provide lasting benefits for generations to come.


He said: "That's why we have recently launched a £23.5 million legacy plan to ensure Scotland capitalises on the economic, social and cultural advantages of the Games.


"There are still issues to be resolved.


"The Scottish Government will continue to make the case for the recovery of £150 million national Lottery funds diverted from Scotland to pay for the London Olympics and to call for Scotland to receive its share of Olympic regeneration investment.


"An estimated £165 million has been lost because this funding was not subject to the Barnett formula in the normal way.


"However, we can't wait for this to happen to guarantee the position of the Games and therefore this detailed review takes account of all eventualities and will ensure the Games are funded adequately and properly."


Glasgow City Council leader Steven Purcell said: "I accept this has been caused by changing circumstances since we submitted the bid and all the partners have worked very closely to minimise the increase."


Michael Cavanagh, the chairman of Commonwealth Games Scotland, said: "This revised budget will ensure the partners are able to continue to deliver on their commitment to the Commonwealth to organise an outstanding athlete centred Games and at the same time leave a significant legacy for Scottish sport.


"We are fully supportive of the proposed budget changes.


"Hosting the Commonwealth Games in Glasgow is a once in a generation opportunity to transform and enhance Scottish sport for the long-term."



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