§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government: What actual or contingent liabilities will remain for payment from public funds in connection with the Millennium Dome and its site after the commercial deal between Millennium Dome Limited, Anschutz Entertainment Group and the Government becomes unconditional, as expected by June 2004.[HL23]
§ The Minister of State, Office of the Deputy Prime Minister (Lord Rooker)The contracts which were signed between English Partnerships, Meridian Delta Ltd, AEG and Quintain in May 2002 provide for AEG to have a 12-month period, after the transaction becomes unconditional, during which to commence construction of the Arena. This is needed to allow time for the necessary construction contracts to be procured.
Although theoretically construction inside the Dome might have been able to begin as soon as the deal went unconditional, commercial practicalities do not allow this and English Partnerships has budgeted in accordance with the May 2002 contracts to continue to pay core Dome costs for the period after the deal has gone unconditional and until construction of the new arena starts. Similarly while the arena is under construction English Partnerships has also budgeted 79WA to pay a reduced level of costs. Those costs will cease on practical completion of the arena.
The details of English Partnerships' ongoing costs of Dome upkeep after the MDL deal has gone unconditional are dependent on practical arrangements within the overall terms of the contracts agreed in May 2002. Other costs in relation to the Dome—that is, any remaining decommissioning costs and the costs of the sale process—will cease when the deal with MDL goes unconditional.
All of English Partnerships' costs in relation to the Dome will be recovered from sale proceeds.
I will update the House further and provide more information on costs when negotiations are concluded and the deal with MDL has gone unconditional.