Millennium Dome: Market Testing (Hansard, 3 May 2001)

§ The Minister of State, Cabinet Office (Lord Falconer of Thoroton)
My Lords, as was announced to Parliament on 26th April, English Partnerships has received more than 100 informal expressions of interest for the Dome and the development of other parts of the Greenwich peninsula during and since the Legacy negotiations. The Government are looking at these, and, in parallel, testing the market for other interest in using the Dome. Discussions with a number of key organisations are focused at this stage on a small number of potential uses and will take several weeks to complete.
It would not be appropriate for me at this stage to disclose more details. Once the market testing has been completed and properly considered, we will announce details of the future process.
The process being followed is consistent with professional advice and with the aim of securing an appropriate use for the Dome, which contributes towards the long-term regeneration of the Greenwich peninsula. We expect a buyer to emerge during the course of this year.

§ Baroness Noakes
My Lords, I thank the noble and learned Lord for reading out his Written Answer of last week. Will he share with noble Lords the advice the Government received on the difference in value between the sale of the Millennium Dome site with and without the Dome structure? If he finds precision difficult to the nearest £10 million, will he explain on what basis, the Government are keen to preserve the benefits of this magnificent structure"?—[Official Report, 26/4/01; col. WA232.]

§ Lord Falconer of Thoroton
My Lords, the decision to keep the Dome was based upon studies made which indicated that in terms of value for money that was the sensible course. It is not possible at this stage to give a detailed comparison because we do not know what the precise level of the bids will be. I do not believe there is any doubt but that there have been substantial regenerative benefits from having the Dome—sweeping environmental and other improvements, including a new ecologically based river terrace and flood defence for Greenwich; the Greenwich Millennium Village; a 162-bed hotel; a state-of-the-art cinema complex; a new primary school; a brand new health centre expected to open soon; major retail outlets; new roads; new drains and other servicing on a grand scale; and an estimate by the London Borough of Greenwich of 30,000 jobs within the next few years. I regard those as benefits well worth fighting for.

§ Lord Barnett
My Lords, can my noble and learned friend tell us what markets the Government are testing? Will he also confirm that he has not ruled out the possibility of keeping the Dome in public hands and renting it out thereafter?

§ Lord Falconer of Thoroton
My Lords, our intention is to find a buyer for the Dome. We are testing the markets where people may be interested in buying the Dome.

§ Lord Glenarthur
My Lords, can the Minister say what is the current cost of maintaining the Dome as it stands and does he feel that that represents good value for money?

§ Lord Falconer of Thoroton
My Lords, it is £600,000 a month.

§ Lord Graham of Edmonton
My Lords, many in the House will know my background in local government. Therefore, while I appreciate the national interest in the site, can the Minister tell us whether the local authority and the people of Greenwich made their views known as to what they would like to see happen to the site?

§ Lord Falconer of Thoroton
My Lords, the local authority and the people of Greenwich are clear in their view that the Dome should stay. They regard it as something that has had a transforming effect on the area. As everybody in the House knows, before the Dome came the peninsula was derelict and unusable as a result of contamination caused by the British Gas plant. The coming of the Dome, decided upon by the previous administration, led to 300 acres of what was unusable land being made usable. That has had a transforming effect on the area and the local community is very pleased with the result.

§ Baroness Trumpington
My Lords, the last time I asked this question the Minister said that the suggestion was one of the options being considered. Why cannot the Dome be used as an indoor, all-sports arena which could incorporate boxing, swimming and track? That would make it invaluable for a future Commonwealth Games and of great use if there was a bid for the Olympics.

§ Lord Falconer of Thoroton
My Lords, as I indicated, the market is being tested. It is for the market to come forward and for us to discuss with the market the things that can be done with the Dome.

§ Lord Oakeshott of Seagrove Bay
My Lords, I listened with great interest to the Minister's remarks. I have the greatest difficulty in deciding whether or not the Dome is really for sale. What does the "market testing" consist of? The most interesting thing I heard the Minister say was, "We are waiting for buyers to emerge". Can we have more clarity as to whether the Dome is for sale and, if so, on what basis?

§ Lord Falconer of Thoroton
My Lords, I hoped I had explained both in the Written Answer and again today. 812 On the advice of people who sell property, experts in the sale of property are approaching people who may be interested in buying the Dome. They are having discussions as to what they see as the best way to market the Dome and what its specific uses may be. That is consistent with the professional advice we received.

§ Baroness Gibson of Market Rasen
My Lords, has my noble and learned friend had the pleasure. as I had today, of travelling from the Dome to your Lordships' House by the wonderful Jubilee Line which was provided for us in that part of London? As the housing to which my noble and learned friend referred earlier has been described as "fit for kings and queens", does he agree that if any noble Lords are looking for a home in London, Greenwich would be a wonderful place for them to settle? Within 20 minutes they can travel from the Dome straight to your Lordships' House.

§ Lord Falconer of Thoroton
My Lords, I have not had the pleasure of that journey today, but I have had the pleasure on many previous occasions. I know that many other Members of your Lordships' House have had the same pleasure, indeed they have had that pleasure with me on a number of occasions. All have told me what a good trip it is from the Dome to the Lords and from the Lords to the Dome.

§ Baroness Anelay of St Johns
My Lords, can the Minister answer the Question of my noble friend Lady Noakes? He kindly read out a Written Answer. He may not have noticed that my noble friend had changed her Question today. When is the market testing to be concluded? Or have the Government let the companies have an open contract?

§ Lord Falconer of Thoroton
My Lords, I answered the Question. As the noble Baroness, Lady Noakes, indicated, she had read the Written Answer I gave on Thursday of last week which said that the Government were looking at options and in parallel testing the market for others interested in using the Dome. Discussions with a number of key organisations are focused at this stage on a small number of potential users and will take several weeks to complete.