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If it is a true figure I expect the £500k is the cost of the television and installation. This is, as far as I understand it, being entirely paid for by the Olympic Committee (LOGOC) and not from local budgets. DDC have projected that the annual running costs including maintenance are initially slightly over £6k. If the telly was rejected then the £500k would simply have gone to a different town - it wouldn't have be held in a pot for Dover to spend elsewhere on other projects. To imply that it could have been is almost certainly misleading.
Revised plans dated yesterday are available here:
http://www.secure.dover.gov.uk/planning_online/acollate_docs/86138_12.pdf
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