Blair tries to calm fears Olympics will hit arts

LONDON, Mar 6 (Reuters) Prime Minister Tony Blair tried today to calm fears in Britain's arts community that a multi-billion-pound bill for the 2012 London Olympics will lead to sharply reduced spending on culture.

In one of a series of speeches on Britain's future he is giving before he steps down in a few months, Blair hailed a ''renaissance'' of culture during his 10 years in power.

Government funding for the arts had doubled since he took office in 1997, a free admission policy had boosted visits to museums and galleries to 42 million a year and London had become the ''creative capital of the world'', he told an invited audience at the Tate Modern art gallery.

The museum, created in 2000 from a disused power station, became London's most popular tourist attraction last year, with nearly five million visitors.

Blair praised the role new arts and cultural centres had played in regenerating British cities; the economic benefits of creative industries and culture's role in attracting tourists to Britain.

But he acknowledged fears in the arts community that a ''golden era'' may be about to end because of expected tight limits on public spending in the years ahead and competition for funds from the 2012 London Olympics.

Blair said he could not reveal the results of a spending review being led by Chancellor Gordon Brown, who is expected to take over from Blair in July.

''But I can say this: All of us in government take great pride in what has been achieved this past decade. We have avoided boom and bust in the economy. We don't intend to resume it in arts and culture,'' Blair said.

Sports minister Tessa Jowell said in November that the estimated cost of building sports facilities for the Olympics has soared by 40 percent and the media is speculating that the overall cost could soar to 10 billion pounds.

Leading arts world figures fear the government may raid the culture budget to make up for the shortfall or that the arts could lose funding from the National Lottery, which has been a key driver of arts projects in recent years.

Nicholas Hytner, director of the National Theatre, writing in the Guardian newspaper last month, said the arts world was worried that ''in salvaging a single magnificent sporting event, the government could squander 10 years of cultural investment.'' The Conservatives said Blair's speech smacked of ''desperation from a prime minister more concerned about his legacy than tackling the problems this country faces.'' The days of ''Cool Britannia'' -- when Blair took power as a young prime minister who enjoyed hobnobbing with leading lights in the pop music, film and television worlds -- were over, said Conservative culture spokesman Hugo Swire.

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