§ Baroness Seccombeasked Her Majesty's Government:
What action has been taken by the Lord Falconer of Thoroton in his capacity as Minister and as shadow director of the New Millennium Experience Company to comply with the advice given by PricewaterhouseCoopers (PwC) at page 39 of their Project Mozart presentation that shadow directors "must be on notice and need to take urgent action to address the position after taking appropriate legal and commercial advice" in light of the PWC's statement at page 39 that "There is clear evidence to suggest that NMEC is currently insolvent." [HL4134]
§ The Minister of State, Cabinet Office (Lord Falconer of Thoroton)Any action I may take in relation to the New Millennium Experience Company (NMEC) I take in my role as shareholder, and I am not on the board of directors. As shareholder I have been kept informed of issues as they have arisen. The PricewaterhouseCoopers (PwC) report was submitted to the Board of NMEC on 22 August. The board noted the PwC view, and took expert advice about the company's solvency position at the end of August. As a result they considered that there was a real prospect of further funding to enable the company to ensure ongoing solvency. This was found to be the correct course of action as on 5 September the commission approved a grant of £47 million to the NMEC which secured NMEC's ongoing solvency.
§ Baroness Blatchasked Her Majesty's Government:
Whether the Millennium Dome's New Millennium Experience Company has, at any time, traded while insolvent; and, if so, which periods. [HL4159]
§ Lord Falconer of ThorotonThe PricewaterhouseCoopers (PwC) report, which was presented to the NMEC board on 22 August and is now in the Libraries of the House, costed the liabilities of the company and indicated that there were periods of insolvency throughout the year.
The effect of Section 214 of the Insolvency Act 1986 can be to make it proper for a company's directors to continue to trade, even though the company may technically be insolvent at a given time, if there is a reasonable prospect that they may be able to introduce sufficient funds to correct the insolvency and thereby eliminate any risk to creditors.
The NMEC board and its directors secured additional grant from the Millennium Commission in February, May, August and September 2000.
156WA
§ Baroness Anelay of St Johnsasked Her Majesty's Government:
Further to the statement by Lord Falconer of Thoroton on 5 October (H.L. Deb., col. 1684) that "discussions are taking place to finalise how the other pre-condition will be achieved, but they are almost there", whether those discussions have now been completed; and whether, as a consequence, the pre-condition imposed by the Millennium Commission on a grant of £47 million on 4 September that that amount represented the last draw-down from the Millennium Commission is now in place. [HL4237]
§ Lord Falconer of ThorotonThe Government are currently considering the best process and vehicle to deal with any potential residual and contingent liabilities arising from the Millennium Experience. However, the grant of £47 million awarded by the Millennium Commission to the New Millennium Experience Company (NMEC) was to ensure an orderly wind-down of the company. The board of NMEC are confident that a solvent solution will be achieved within the current level of grant.