Olympics: Vancouver 2010 Olympics committee runs deficit

The committee organizing the Winter Olympics in Vancouver in 2010 is spending more than it is making to prepare for the games, according to the organisation's latest financial statements released today.

The report says the committee ran a deficit of C$48.1 million ($NZ66.96 million) in the year ending July 31, compared to the C$60.9 million surplus it had in 2006-2007.

Rising costs for venues being constructed or upgraded, along with mounting costs in other areas have contributed to the deficit.

The increased budgets for the venues appear to have been covered off by a dwindling contingency fund, which now sits at around C$13 million.

The venues are considered complete and operational with what organizers call "minor construction activity" remaining, and organizers appear positive they will stay within their C$1.6 billion budget.

"As we quickly transition out of venue construction into a year focused largely on operations, we continue to exercise a strong internal cost control focus with a view to delivering great Games and leaving both positive financial and enduring sport legacies," John Furlong, the chief executive officer of the organizing committee, said in a statement.

Organisers say the coming year will see a boom in spending by the committee as they start buying everything from food to fuel amid the global financial crisis, but they say they're focusing on controlling costs and developing new revenue sources and are hopeful that the committee will not wrap up the Games in the red.

"With a significant level of activity in the next fiscal year, we remain confident in our financial position in spite of a turbulent global economy," John McLaughlin, the chief financial officer for the organising committee, said.