HL Deb 30 November 2000 vol 619 cc156-9WA
Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), whether any request has been made to Legacy plc by the Government for a portion of the sale price of the Dome site to be paid prior to the signing of the contracts; whether Legacy plc has agreed to such a request; and whether there is an agreement that such a sum will be repaid to Legacy plc in the event that outstanding contractual issues cannot be resolved satisfactorily within an agreed timetable. [HL4745]

Lord Falconer of Thoroton

The details of contractual issues are being pursued in negotiations between the competition team and Legacy plc. Details of the proposed overall financial consideration for the sale of the Dome to Legacy plc must remain commercially confidential at this stage. The arrangements for Legacy plc to acquire the Dome will include a cash consideration on exchange of contracts and a further cash consideration on completion of the sale.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what is the sum offered by Legacy plc for the purchase of the Dome site and accepted by the Government as the basis for the award to Legacy plc of the preferred bidder status; and [HL4744]

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what are the outstanding contractual issues which must be resolved before contracts can be signed with Legacy plc for the sale of the Dome site. [HL4746]

Lord Falconer of Thoroton

There are a number of contractual issues, including purchase price, which will form part of the current negotiations currently taking place between Legacy plc and the competition team. The details of these negotiations are commercially confidential.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), which body or bodies will regularly monitor the progress of the negotiations for the sale of the Dome site to Legacy plc; and to which Minister or Ministers the reports on such progress will be made. [HL4747]

Lord Falconer of Thoroton

The negotiations with Legacy plc will be undertaken by the competition team, and overseen by officials from the Department of the Environment, Transport and the Regions (DETR), the Department for Culture, Media and Sport (DCMS), Cabinet Office and HM Treasury. Regular reports will be made to the ministerial team, which includes the Deputy Prime Minister, Lord Falconer, Minister of State at Cabinet Office and Shareholder of the New Millennium Experience Company (NMEC), Andrew Smith, Chief Secretary to the Treasury, Hilary Armstrong, Minister for Local Government and the Regions, and Janet Anderson, Minister for Tourism, Film and Broadcasting.

Baroness Anelay of St Johns

asked Her Majesty's Government:

What assessment they have made of the impact of the development of the Excel site in Docklands upon the viability of the Legacy plc offer to develop the Dome site; and whether they will publish the results of that impact assessment. [HL4749]

Lord Falconer of Thoroton

The Excel centre in the Royal Docks and Legacy plc's proposals for the Dome are of a very different nature, one being an exhibition centre, the other a high-technology business park. The commercial and financial viability of Legacy's proposals has been evaluated by the Government's advisers. The evaluation is commercially confidential. Further development of evidence of commercial demand will be important in continued negotiations with Legacy plc.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what action they propose to take in order to sell the Dome site in the event that the outstanding issues with Legacy plc cannot be resolved by mid-February. [HL4748]

Lord Falconer of Thoroton

English Partnerships undertook a review of alternative options for the Millennium Dome and its site while discussions were taking place between the competition team and Legacy plc. Ministers will wish to revisit that work should negotiations with Legacy plc fall.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what advice they received that Legacy plc should not be named as the preferred bidder for the Millennium Dome; and why they rejected that advice. [HL4782]

Lord Falconer of Thoroton

The professional advisers to the competition team provided comprehensive advice to Ministers. This detailed advice is commercially confidential, but it concluded that Legacy plc could be awarded preferred bidder status while recommending that a number of issues should be vigorously pursued as part of any future negotiations with Legacy plc. These negotiations will continue over the coming months and the Government hope to be in a position to exchange contracts in February.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what will be the cost of clearing attraction zones from the Millennium Dome after 31 December: and what sum has been allocated for this work within the budget of the New Millennium Experience Company as at 22 November. [HL4783]

Lord Falconer of Thoroton

The New Millennium Experience Company (NMEC) is in discussion with Legacy plc with regard to the level of decommissioning required. NMEC has a budget of £7.5 million for the decommissioning. This sum is sufficient to deal with decommissioning which NMEC is obliged to undertake.

Baroness Hanham

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what sum will be allocated to the New Millennium Experience Company from the proceeds of the sale of the Millennium Dome site and what sum will he paid to English Partnerships. [HL4774]

Lord Falconer of Thoroton

The Government are currently considering the division of proceeds in light of the decision announced on 20 November that Legacy plc had been selected as preferred bidder.

Baroness Hanham

asked Her Majesty's Government:

Further to the Written Answer by Lord Falconer of Thoroton on 20 November (WA 61), what sum they expect to be paid by the New Millennium Experience Company to the Millennium Commission as a repayment in whole or in part of the moneys made available by the Millennium Commission to the New Millennium Experience Company above and beyond the original grant of £399 million. [HL4775]

Lord Falconer of Thoroton

The Millennium Commission is entitled to receive any surplus achieved by the New Millennium Experience Company (NMEC) from trading, asset disposals, or the Legacy transaction. No precise amount can be forecast until NMEC completes its operations on 31 December and the Legacy transaction is concluded.

Lord Luke

asked Her Majesty's Government:

What agreement they have reached with Legacy plc with regard to the warranties and indemnities which will form part of the contract of sale of the Millennium Dome. [HL4759]

Lord Falconer of Thoroton

Details on the contract of the sale, including warranties and indemnities, are part of the detailed negotiations which are taking place with Legacy plc and the competition team. This information is commercially confidential.