HC Deb 08 January 2002 vol 377 cc551-3W
Nick Harvey

To ask the Secretary of State for Culture, Media and Sport for how long the PFI contract her Department holds with Royal Armouries (International) for the management of Leeds Royal Armouries exhibition runs; what the total cost of the project has been to her Department; what funding was required to rescue the project; what estimate she has made of the future costs of

Regional Arts Boards
Average salary in year Percentage of total expenditure spent on salaries
Northern 19,272 9
North West 19,334 9
Southern 21,021 14
South East 20,802 17
South West 17,803 11
West Midlands 18,458 11
Yorkshire 18,779 10
East England 21,542 14
East Midland 17,042 14
London 25,625 7
Northern 20,560 8
North West 18,963 8
Southern 20,461 13
South East 21,531 20
South West 17,968 12
West Midlands 19,371 11
Yorkshire 20,372 10
East England 22,629 12
East Midland 19,367 12
London 24,181 5
Northern 21,363 6
North West 19,888 5
Southern 24,046 9
South East 22,530 15
South West 19,730 10
West Midlands 21,054 7
Yorkshire 21,951 8

Nick Harvey

To ask the Secretary of State for Culture, Media and Sport how much the Arts Council of England has distributed to each of the regional arts boards in each year since 1995. [23574]

Dr. Howells

The Arts Council of England has been supplied the following information, which includes grant-in-aid and lottery funding combined:

the project to her Department; what estimates she has made of the value of RAI's new contract; under what terms the nature of the initial contract was changed; and what assessment she has made of the performance of RAI. [23568]

Dr. Howells

Under their current 57 year contract with the Armouries, Royal Armouries (International) plc (RAI) are responsible solely for providing catering, corporate entertainment and car parking. The responsibility for managing the museum and its retail outlets was transferred to the Royal Armouries in 1999.

The total cost of the project to build the Royal Armouries museum at Leeds was £43 million. Over £14 million of the construction cost was met by RAI. The Government contributed £20 million via the Royal Armouries, and Leeds city council and Leeds Development Corporation together provided £8.5 million.

As part of the renegotiation of the original PFI-type deal, RAI's outstanding debt of £21 million was borne by the private sector. To cover the additional responsibilities assumed by the Royal Armouries my Department has provided additional grant of £1 million a year since 1999. The future cost to my Department is £1 million a year in additional grant. My Department has not provided any funding to RAI.

The value of RAI's new contract is a matter for RAI. Under the new arrangements agreed in July 1999 RAI retains responsibility for the repayment of its debt of £21 million. RAI also retains responsibility for the provision of corporate entertainment and catering services for a period of 40 years and car parking for a period of 57 years, together with the income from those functions. The Royal Armouries took over responsibility for all other operations and retail outlets. The Armouries stands to receive 20 per cent. of RAI's turnover from corporate entertainment and catering activities once RAI has paid off its debt plus 20 per cent. of its car park income after 40 years.

The current agreement between RAI and the Royal Armouries sets out the standards of performance required. This is a matter between RAI and the Royal Armouries.