Traders warn bid

Hundreds of firms facing relocation if London hosts the 2012 Olympics have demanded £1.5billion in extra compensation - and threaten to back rival bid city Paris if they do not get it.

They have given Mayor Ken Livingstone's development agency seven days to come up with the cash to help them move out of Stratford.

They say they will urge the International Olympic Committee - which meets in Singapore in July to decide which city will be host - not to award the Games to London if the cash is not forthcoming.

But the London Development Agency, which has £385million to relocate 308 firms, says it has exceeded its legal obligations.

About 100 firms met officials from the LDA and the London 2012 bid team yesterday. Many are around Marshgate Lane in Stratford, a run-down area that would be bulldozed to make way for a 80,000-seat Olympic stadium and athletes' village.

Despite 18 months of talks, only eight firms have agreed to move out if the Games are awarded to London. The rest are keen to agree prices prior to decision day in July, after

which London 2012 organisers could compulsorily purchase the land. One businessman told the Standard the LDA was dragging its heels. But another said he had already found new premises and was hanging on for the best price for his factory.

Lance Forman, who runs a smoked salmon firm supplying top restaurants such as Gordon Ramsay and Nobu, said: "If there are jobs to be lost, we'd rather they were French jobs than our jobs."

Sam Mohal, who moved his alcohol distribution firm to Barking last month, said he had been offered £85 per square foot for his premises when rents elsewhere in east London were £110 to £140.

An LDA spokesman said "clear evidence" was needed of higher land costs. The Olympics would bring 6,000 new jobs to the area, he said.