§ Lord Lukeasked Her Majesty's Government:
Whether they informed M. Gerbeau that the Dome project was on budget when he was engaged as Chief Executive to the New Millennium Experience Company in February; and, if so, on what basis; and [HL3593]
Whether they accept the estimate made by M. Gerbeau that the budget of the New Millennium Experience Company was £26 million adrift when he became chief executive. [HL3594]
§ Lord Falconer of ThorotonFollowing M. P-Y Gerbeau's appointment on 7 February 2000, his priorities were to fix the product on offer to visitors and to make the New Millennium Experience Company (NMEC) into an efficient service business. He has achieved those two aims. In parallel with the changes he introduced to the product and the business, he instituted a complete review of budgets. The outcome of that review indicated a potential cost overspend by the end of the year of £26 million unless measures were introduced to stem expenditure and find savings. Through the introduction of measures to increase revenue and by driving down costs, NMEC is confident that costs can be brought back to the original £758 million ceiling. Under the terms of the grant agreement between NMEC and the Millennium Commission, the commission is required to approve the company's budgets. The commission accepted the outcome of the budget review and has ongoing discussions with the company about cost efficiencies and cost savings.
The nature of the discussions prior to the appointment of M. Gerbeau as Chief Executive and the basis on which he agreed to take up the post are matters between him and the board of the company. I understand that the discussions focused on the operational and business organisation aspects of the project, as they were the critical priorities at the time.
§ Lord Lukeasked Her Majesty's Government:
Whether they have approved the decision by the New Millennium Experience Company to revise their budget, which now shows that they expect to receive a minimum of £30 million from the Millennium Dome site instead of the original figure of £15 million. [HL3595]
85WA
§ Lord Falconer of ThorotonWhen the budget was set in early 1997, the Millennium Experience at Greenwich was envisaged as a one-year exhibition, following which the Dome would be dismantled. The estimated disposal value of the Dome at that time was £15 million. In June 1997, this Government gave the Dome project the go-head with five key commitments one of which was that it should have a lasting legacy in terms of the regeneration of the Greenwich peninsula. Once the competition to establish a future use for the Dome was under way, NMEC revised the estimate in their budget to £30 million.
§ Lord Lukeasked Her Majesty's Government:
Whether they plan to hand over the running of the Millennium Dome to its purchaser before 31 December 2000. [HL3596]
§ Lord Falconer of ThorotonThere are no plans to hand over the Millennium Dome to a preferred bidder before 31 December 2000.
§ Baroness Anelay of St. Johnsasked Her Majesty's Government:
Whether the terms of the contract of sale of the Millennium Dome site include a requirement that the sum should be paid by the purchaser to the New Millennium Experience Company prior to 31 December; and, if so, what that sum will be; and when it will be paid. [HL3587]
§ Lord Falconer of ThorotonThe terms of a contract of sale would not require a preferred bidder to pay a sum to the New Millennium Experience Company (NMEC) in advance of 31 December 2000.
§ Baroness Anelay of St. Johnsasked Her Majesty's Government:
What impact assessment they made of the revenue loss and operational cost to the New Millennium Experience Company (NMEC) of implementing the Government's request that 1 million free tickets should be given to schoolchildren; when the assessment was made; and when it was made available to the NMEC. [HL3588]
§ Lord Falconer of ThorotonOn 17 March 1999, my right honourable friend the Prime Minister, announced in another place that the New Millennium Experience Company (NMEC) were making 1 million free tickets available to schoolchildren. The decision was taken by the Board of NMEC and it was for them to incorporate the costs of that decision into their business plan.
§ Baroness Anelay of St. Johnsasked Her Majesty's Government:
Whether the New Millennium Experience Company was trading solvently on Monday 17 July. [HL3591]
§ Lord Falconer of ThorotonThe New Millennium Experience Company was trading solvently on Monday 17 July.