HC Deb 27 January 1998 vol 305 cc217-20W
Mr. Maude

To ask the Minister without Portfolio (1) what steps were taken to ensure that the tendering process for the contract awarded to Brand Union conformed with European law; [25548]

(2) what is the lower limit for contracts regarding logo design or corporate identity to be placed in the European Journal. [25546]

Mr. Mandelson

[holding answer 26 January 1998]: The New Millennium Experience Company's legal advice is that there is no requirement for contracts for corporate brand and identity (including logo design) to be advertised in the Official Journal of the European Communities. Such contracts fall within Part B of the Public Services Contracts Regulations (SI 1993/3228), the obligations of which, in contracts of this nature, concern technical specifications and post-contract award information. The New Millennium Experience Company has complied with the relevant obligations and, in the case of post-contract award information, will comply when negotiations on contract details are finalised. In the circumstances, the issue of lower limits of contract value and the European Journal do not apply.

Mr. Maude

To ask the Minister without Portfolio if he will make a statement on the tendering process used for the corporate identity and logo design contract awarded to Brand Union Ltd. [25547]

Mr. Mandelson

The New Millennium Experience Company (NMEC) is required to achieve some £359 million of income from private sponsors, visitors and other commercial income. NMEC's aim, therefore, is to develop a brand and identity, of which a logo is an integral part, which will assist the delivery of that income target.

After initial concept work in July and August, the NMEC Board's Executive Committee agreed in September that three companies would be invited to submit logo designs, on the basis that the status, experience and competence of those invited to tender were sufficiently similar to enable proper competition, and that no conflicts of interest arose for the Board or Executive of the NMEC.

Two of the three companies invited to do so submitted logo proposals. NMEC's Board decided that those from Brand Union Ltd., which included a comprehensive package of design support, were superior and held the prospect of providing the quality and profile considered essential to assist the achievement of sponsorship and other income targets.

However, it was clear that, whichever of the two bidders was chosen, further development work would be needed, both on logo and on overall brand and identity. In November, the Board's Executive Committee agreed that discussions with Brand Union Ltd. should be undertaken with the aim of refining the logo concepts and of establishing favourable contract terms. At this stage, Brand Union's work was shown to me, as Shareholder.

Subsequent discussions and negotiations between the company and Brand Union Ltd. concluded with a proposal that NMEC would pay Brand Union £50,000 to finalise the logo design, for copyright of the logo, and for work on wider brand and identity. In addition, the company is in discussion with Martin Lambie-Nairn of Brand Union Ltd. over provision of design services to NMEC on all aspects of brand and identity.

On 13 January, NMEC's Chief Executive informed the Millennium Commission, in accordance with the provisions of their Grant Agreement, of its proposed contract arrangements. The Commission confirmed on 16 January that they were content with the decision.