First Dome sale botched
The first attempt to sell the Millennium Dome was botched by mismanagement.
That is the conclusion of a new report from the National Audit Office, which finds that the bidding process was over-complicated, too many parties had differing aims and there were problems in the New Millennium Experience Company, which failed to maintain records of its assets and liabilities.
But, the Government is praised for learning lessons from the process and successfully completing the second bid process.
Since the initial failure to find a buyer in 2001, the site has sat empty and been maintained by the taxpayer.
The deal to take over the Dome was announced in June 2004. It involves the sale of the Dome and some associated land to Meridian Delta Ltd and the Anschutz Entertainment Group. They will now construct an entertainment complex on the site, oversee regeneration of the Greenwich Peninsula and build 10,000 new homes.
Sir John Bourn, head of the NAO, said he believed this deal would meet the Government’s objectives. Namely, a return to the taxpayer (estimated at about £550 million) and development of the Greenwich Peninsula.
Speaking today, Sir John said: “In difficult circumstances following the failure of the first competition, English Partnerships and the Office of the Deputy Prime Minister have worked hard to get a deal. There are risks still to be managed but local residents, and indeed the taxpayer, stand benefit from it.”
The Government has welcomed the report, with Deputy Prime Minister John Prescott saying: “This report confirms the importance and strength of this deal.” He added: “Of course the deal still has to be delivered, but the NAO conclude there is a contractual basis for the long-term delivery of substantial benefits for Greenwich, London and the Thames Gateway.”
But others were not so charitable. Conservative spokesman for London Mark Field said that: “Every day Londoners drive past the great white elephant of the Dome which stands as a monument to Labour’s incompetence in building, running and now selling of the failed project.
“The taxpayer has had to pick up the bill for mothballing the Dome for four years at a cost of £28.7 million. The £362.7 million of taxpayers’ money that this government has wasted is enough to put 12,544 extra police officers on our streets.”
And the Liberal Democrats said both the Conservatives and Labour were to blame.
London spokeswoman Sarah Teather said: “Millions of pounds of taxpayer’s money have been thrown away on a project that failed to provide any positive lasting legacy for London’s East End.
“Ministers had a big idea with no long term plan or vision, which means the whole thing has been a whopping waste of money. Both the Tories, for coming up with the idea of the Dome, and Labour, for following it through, owe a big apology to the capital for an expensive empty tent.”
