§ Mr. WyattTo ask the Secretary of State for Culture, Media and Sport whether EU directives for the administration of public projects apply to the building of the national stadium at Wembley; and if she will make a statement on the national stadium. [44445]
§ Mr. CabornResponsibility for the development of the National Stadium project lies with the Football Association and their wholly owned subsidiary company Wembley National Stadium Ltd. (WNSL). The FA are 573W committed to making a significant equity investment in the project and to raising debt financing to fund the majority of construction and other related costs.
WNSL are required, under the terms of the lottery funding agreement concluded with Sport England, to fully comply with EU procurement legislation unless WNSL has been properly advised that EU procurement legislation does not apply. In such circumstances, the lottery funding agreement requires WNSL to adopt commercial competitive tendering procedures unless it can demonstrate to the satisfaction of Sport England that there is some overriding reason why that is not appropriate. I understand that WNSL's legal advisers advised WNSL in 1998 that EU procurement legislation does not apply to the national stadium project.
§ Mr. BaileyTo ask the Secretary of State for Culture, Media and Sport what steps have been taken to ensure that an independent assessment is made of any future contract between Wembley National Stadium Ltd. and Multiplex to ensure value for money and conformity to best practice in corporate governance and procurement practice. [46246]
§ Mr. CabornMy right hon. Friend the Secretary of State set out the Government's position on the national stadium project to the House on 19 December 2001,Official Report, column 292. One of the conditions of Government support was that the Football Association and Wembley National Stadium Ltd. should commission an independent value for money assessment of the proposed contracts with Multiplex. That assessment is currently under way following the appointment by WNSL of Cyril Sweet Ltd. to carry out this study. A copy of Cyrill Sweet Ltd.'s terms of reference were placed in the Library on 12 March.
Another of the Government conditions laid out on 19 December relates to corporate governance changes required of the Football Association and WNSL to produce a management structure capable of delivering a complex project within procedures acceptable to the public sector. The FA and WNSL are currently engaged in producing proposals to meet the Government's conditions and we expect the FA's work to be completed in April. The FA/WNSL proposals will be subject to scrutiny by Patrick Carter's review team and Sport England as well as by the Government.