§ Mr. Peter AinsworthTo ask the Secretary of State for Trade and Industry (1) how much has(a) been paid or (b) been agreed to be paid by the New Millennium Experience Company to IMG; [62779]
(2) what is the value of sponsorship money for the Millennium Exhibition raised by IMG. [62703]
§ Mr. Mandelson[holding answer 7 December 1998]: I refer the hon. Member to the answer given below to the hon. Member for Christchurch (Mr. Chope).
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§ Mr. ChopeTo ask the Secretary of State for Trade and Industry (1) which sponsors of the Millennium Dome have been recruited through the services of the International Management Group; [63113]
(2) on what date and for what reason the contract between the New Millennium Experience Company and the International Management Group was terminated; [63114]
(3) in respect of which of the sponsoring companies of the Millennium Dome a success fee has been paid to the International Management Group. [63115]
§ Mr. Mandelson[holding answer 8 December 1998]: During the development of the Millennium Experience project, prior to the establishment of the New Millennium Experience Company (NMEC), the Millennium Commission invited companies to tender to provide independent consultancy advice on the achievability of the sponsorship target and to quote their rates for raising sponsorship. IMG were the lowest bidder on both counts. Subsequent negotiations of the detail of the contract for raising sponsorship were conducted from late February 1997, by Millennium Central (the previous name of the NMEC). The key terms of the contract were reported to the House in my answers to the hon. Member for Herstmere (Mr. Clappison) on 17 July 1998, Official Report, column 324 and the right hon. Member for Horsham (Mr. Maude) on 17 July 1998, Official Report, column 327. At that stage both the NMEC and the Millennium Experience project were still in development—the sponsorship task; the nature of the offer to potential sponsors; and the overall sponsorship strategy had yet to be finally decided. Subsequent refinements of the task impacted on the nature of the work IMG were required to undertake. At the same time, NMEC's own in—house Commercial Department grew in expertise and strength. They are now well placed to deliver the remaining sponsorship necessary to meet the target of £150 million.
In light of these developments, the NMEC and IMG have over the last few months been considering the terms of their original agreement. The parties have decided to terminate the arrangement by mutual agreement and NMEC have recorded their appreciation for the considerable contribution IMG has made to the project. The Legal documentation is currently being concluded. Details of the termination are commercially confidential. However, the fee payable to IMG represents the value of their support for, and assistance with, the NMEC's sponsorship work to date and is significantly less than the prospective fee of £9 million which I reported to the House on 17 July 1997, Official Report, column 324.
§ Mr. BakerTo ask the Secretary of State for Trade and Industry if he will list the sponsorship obtained for the Millennium Dome by(a) the International Management Group and (b) the New Millennium Experience Company by (i) name of sponsor and (ii) the amount secured. [62650]
§ Mr. Mandelson[holding answer 8 December 1998]: I refer the hon. Member to the answer given above to the hon. Member for Christchurch (Mr. Chope).