London mayor promises value for money in 2012

By Jeremy Lovell

LONDON (Reuters) - The global credit crunch and a threatened recession will not prevent London delivering a spectacular Olympics in 2012 but the Games will have to give value for taxpayers' money, mayor Boris Johnson said on Tuesday.

Johnson said he was undaunted by the challenge of matching the pageantry of the Beijing Olympics, whose ceremonies and facilities have awed participants and spectators.

"We have all seen what the Chinese have done. It has been fantastic. But I am not intimidated by that. We can have a show that is equally as fantastic without wasting money," he told BBC radio.

"I am not convinced that there aren't still some sensible savings we can make without remotely prejudicing our ability to deliver a fantastic Games," he added.

It will be the third time London has hosted the modern Olympics, previously held there in 1908 and 1948.

The projected cost has already nearly quadrupled to 9.3 billion pounds from the 2.4 billion estimate set out in the city's winning bid in 2005. On Tuesday in Beijing, Culture Secretary Tessa Jowell said no more money would be made available.

Johnson said he believed Olympic chiefs would understand the changed economic environment since London was awarded the Games.

"This was a project, an Olympic Games, that was won, secured, commissioned at a time of economic plenty. We're being asked to deliver it in a credit crunch and with what people say is a recession looming," Johnson said.