Wales is 'losing out to Olympics'

The 2012 London Olympics is being given money from the Lottery

The decision to divert lottery money from culture and good causes in Wales to fund the London Olympics has been attacked by the culture minister.

Rhodri Glyn Thomas estimates the cost to Wales will be about £70m between 2009 and 2012, and the impact will be felt for years to come.

He has written to his Westminster counterpart voicing his concern.

It comes after the Arts Council for Wales (ACW) said it may lose £8m from its budget because of the 2012 games.

In a letter written earlier this month to James Purnell - who was then culture secretary - Mr Thomas said the cuts would have a devastating impact on small community groups throughout Wales and many worthwhile projects would be put at risk.

There is a growing perception that Wales is paying an unfair price for an event that will primarily benefit London and south east England Rhodri Glyn Thomas

In the letter obtained by BBC Wales, he said: "The increased contribution from the National Lottery announced in March 2007 means that Wales stands to lose in the region of £70m in lottery funding between 2009 and 2012.

"The effects are already being felt as distributors in Wales begin to plan for reduced budgets, at a time when income from the National Lottery is already falling.

"Despite assurances about a return of investment from the sale of land after the games, the impact will continue to be felt for years to come and it will take considerable time for Wales to recover."

He went on: "There is a growing perception that Wales is paying an unfair price for an event that will primarily benefit London and south east England.

Mr Thomas said he was "deeply concerned" and stood by his statement to the Commons select committee which opposed any further contribution to the 2012 Olympic and Paralympic Games from the lottery.

Details of Mr Thomas's worries come a day after it was revealed a third of the money usually given to the ACW from lottery funding is being lost to the Olympics.

One of the organisations affected by the immediate budget cuts is St Donat's Arts Centre near Llantwit Major in the Vale of Glamorgan.

It will lose its £45,000 annual grant - a fifth of its annual income.

The centre says could lead to it closing with the loss of three full-time and 12 part-time jobs, as well as ending its annual International Storytelling Festival.

Meanwhile, a report from the auditor general, published on Thursday, said the ACW was improving arts facilities across the country.