The current economic crisis has so far thwarted efforts to agree a final contract with builders Lend Lease and the Olympic Delivery Authority (ODA) are working towards a deadline of the end of the year to seal a deal.

 

The problems surrounding the Village and the Main Press Centre (MPC) were due to be the focus of talks at the ministers' Funders Committee tomorrow, but the meeting has had to be postponed because Chancellor Alastair Darling is visiting Brussels.

 

It has been revealed, however, that the Ministers agreed at their last meeting to give the Village plan a cash injection.

 

A spokesman for the ODA confirmed: "The meeting of the Funders Committee has been postponed as the Chancellor will be in Brussels tomorrow.

 

"Work on the Village continues on schedule and piling has been completed on the first three blocks. £95 million of interim funding has been allocated to the ODA from contingency to enable building to progress.

 

"Discussions on long-term funding arrangements are continuing in what is clearly a very difficult economic environment."

 

Hugh Robertson, the Shadow Olympics minister, said the Government had little option but to shore up the project from the contingency fund, which makes up £2.7 billion of the total £9.3 billion budget.

 

Robertson said: "If the taxpayer is funding this now, then the Government need to ensure that the taxpayers have a greater share of the equity when the village is sold off as housing after the Games.

 

"There has been a bit of smoke and mirrors about this £95 million - it was approved two months ago but has only been announced now."

 

The ODA and Lend Lease are haggling over how much of the advance cash should come from the Government, how much the construction company needs to raise from the banks - a problem in the current climate - and how much equity each will have in the Village when it comes to be sold off
after the Games.