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London Olympics Bill

New clause 3 and new schedule 1 are needed to make the transfer of contracts to the Olympic delivery authority a quick and efficient process. In advance of the ODA being set up, the London Development Agency and Transport for London have been driving forward the work to deliver the games. We are grateful for that work, but a complication has developed as those authorities have had to enter into the first major contracts. Once the ODA is set up, those contracts and some of the equipment and people involved will have to be transferred to the ODA—the body that will ultimately deliver the Olympics. Transferring a large number of individual contracts can be a lengthy and costly process. We want to avoid any unnecessary cost or delay. Where the Secretary of State thinks it necessary, the amendments allow for the creation of transfer schemes, which will ensure that contracts are efficiently moved from authorities such as the London Development Agency or Transport for London to the Olympic delivery authority. The Secretary of State may make a scheme if others have not complied with a direction or if their scheme has not been approved. Using transfer schemes means that batches of contracts can be moved, requiring a single negotiation process rather than many individual ones. The Secretary of State will not be able to approve or make a scheme unless she has consulted the person who submitted it, or ought to have submitted it, the ODA and anyone who may be affected by it. She will also have to obtain the consent of the Mayor. Transfer schemes are usual practice when setting up a new public body that takes over specific responsibilities from another public body. For example, the Greater London Authority Act 1999 used a similar process to transfer contracts to the GLA and TFL from predecessor bodies.