HL Deb 23 October 2000 vol 618 cc1-3WA
Baroness Anelay of St Johns

asked Her Majesty's Government:

On what basis the moneys promised to the Millennium Dome company by commercial sponsors have not yet been paid in full. [HL3987]

The Minister of State, Cabinet Office (Lord Falconer of Thoroton)

The New Millennium Experience Company (NMEC) has advised that, under the terms of the contractual arrangements with sponsors, the following payments are outstanding or due as indicated:

Tesco £500,000—was due for payment on 1 March but withheld while issues raised by Tesco were being resolved in discussion with NMEC. NMEC considers that these issues have now been resolved.
L'Oreal £365,322—due on contract signature. Advised by NMEC to be imminent with no outstanding issues.
BskyB £500,000 payment due in October 2000. £500,000 payment due in December 2000.
Mars £250,000 payment due in December 2000.
Coca Cola £250,000 payment due in December 2000.
BA £100,000 payment due in December 2000.

Baroness Anelay of St Johns

asked Her Majesty's Government:

Why the Millennium Dome was advanced a further £43 million from the funds of the Millennium Commission on 3 August; and [HL3879]

Whether they consider that the sum of £43 million advanced to the Millennium Dome on 3 August was a grant or a loan; and what were the terms express or implied under which the money was advanced; and [HL3880]

What undertakings were given to the Millennium Commission by Lord Falconer of Thoroton and the Government as a condition of the grant of £47 million being made from Lottery funds to the Millennium Dome in August. [HL3986]

Lord McIntosh of Haringey

The Millennium Commission does not have the statutory powers to make loans and has never offered loans to the New Millennium Experience Company (NMEC). Grant made to NMEC will be repayable from any operational surplus or asset disposal achieved after the organisation has met its other contractual liabilities.

On 3 August, in light of the £53 million receipt from the then expected sale of the Dome to Dome Europe plc, the Millennium Commission announced a grant of up to £43 million to the New Millennium Experience Company (NMEC). In doing so, the commission allowed NMEC to realise the potential of the funds due from the sale of the Dome in order to allow the Dome to continue trading, and to facilitate the deal with Dome Europe. The grant to NMEC was awarded subject to a number of conditions, including that the income from the sale would be given directly to the Millennium Commission; that there would be continued regular and detailed reviews of NMEC's financial position; and that the management team would be strengthened.

On 13 September, the Millennium Commission made a further grant of £47 million to allow NMEC to continue operating the Dome to the end of the year and to deal with the company's specified expected liabilities. NMEC's new executive chairman has been investigating the scope of possible further liabilities, but the board is confident that the company can operate the Dome until the end of the year and achieve solvent liquidation thereafter, within the level of Lottery grant available.

Lord Luke

asked Her Majesty's Government:

Why the Millennium Dome was advanced a further £47 million from the funds of the Millennium Commission on 5 September; and [HL3882]

Whether they consider that the sum of £47 million advanced to the Millennium Dome on 5 September was a grant or a loan; and what were the terms express or implied under which the money was advanced. [HL3883]

Lord McIntosh of Haringey

The Millennium Commission does not have the statutory powers to make loans and has never offered loans to the New Millennium Experience Company (NMEC). Grant made to NMEC will be repayable from any operational surplus or asset disposal achieved after the organisation has met its other contractual liabilities.

On 5 September, the Millennium Commission announced that it had offered to the New Millennium Experience Company (NMEC) a grant of up to £47 million in order to facilitate the deal with Dome Europe. The Millennium Commission's decision was based on the findings of PricewaterhouseCoopers' independent analysis of NMEC's financial situation. This grant offer fell away when Dome Europe decided not to pursue its bid, as the purpose of grant could not be achieved.

On 13 September the Millennium Commission made a further grant of £47 million to allow NMEC to continue operating the Dome to the end of the year and to deal with the company's specified expected liabilities. In doing so, the commission sought assurances that arrangements are introduced to ensure that contingencies and provisions in the budget are used only as essential and with the commission's prior consent, and action plans are developed for managing and mitigating the risks identified; that NMEC's management capacity is significantly stregthened, and NMEC attends regular monitoring meetings with the Millennium Commission. NMEC's new executive chairman has been investigating the scope of possible future liabilities, but the board is confident that the company can operate the Dome until the end of the year and achieve solvent liquidation thereafter, within the level of Lottery grant available.

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