LONDON - A KEY organiser of the London 2012 Olympics has rebutted suggestions that the global financial crisis has made this the worst possible time to stage the games.

With the London Games set to cost three times over the original estimate and the British team facing a shortfall in funding of 50 million pounds (S$112.7 million) because of an absence of private finance, some lawmakers and commentators have suggested the British capital erred in bidding for the event.

But Olympic Delivery Authority (ODA) chief executive David Higgins said investment in the city's infrastructure, which accounts for three quarters of the 9.325 billion-pound budget, is providing an unforeseeable boost to the economy.

Analysts have suggested there will be 2 million unemployed in the UK by the end of the year and, with Britain's construction sector having shrunk last month at the fastest pace on record, Mr Higgins suggested the Olympics is providing a rare stimulus to the economy.

'In a challenging economic climate, work on the Olympic Park has already created nearly 3,000 new jobs with nearly one in 10 of those working on site previously unemployed,' Mr Higgins said in a prepared speech for a business conference on Thursday.

'Up to 9,000 construction workers will be needed at the peak of construction.

'The Games are also already creating huge opportunities for UK businesses.'

Mr Higgins said the ODA had given out contracts worth a total of 3.5 billion pounds to more than 800 companies, 98 per cent of which are based in Britain.

Mr Higgins' comments come the day after Olympics Minister Tessa Jowell said that about 100 million pounds every month is being spent on construction for the games.

Ms Jowell, who warned there would be no more public money available for the project, also claimed that hosting the Olympics would still be a positive thing for London despite the huge cost and funding difficulties.

'The Olympics is essentially economic gold at a time of economic need,' she said. 'A shot in the arm for investment.'

Ms Jowell made headlines earlier this month by saying Britain would probably not have bid for the games had it known that a global economic downturn was coming. -- AP