More cash for Dome

Visitor numbers have been disappointing at the Dome

The beleaguered Millennium Dome is to receive a cash injection of £43m from its forthcoming sale to a Japanese company.

The money will be provided by the Millennium Commission on the condition that it receives the New Millennium Experience Company's share of the sale at the end of the year.

The deal means NMEC will now not have to wait until the end of the year to get its £53 million share of the sale of the Dome to Japanese-backed Dome Europe.

Dome Europe, which is backed by Japanese finance house Nomura, intends to turn the attraction into a huge entertainment centre.

It does not increase by £1 the amount of lottery money that goes into the Dome

Lord Falconer
Dome minister

Further conditions of the cash advance include financial prudence and a demand for the strengthening of NMEC's financial management team.

Cash problems

Dome minister Lord Falconer denied that the cash advance was "robbing Peter to pay Paul".

He said: "The Millennium Dome is entitled to £53m from the sale of the Dome to Nomura and that, in part, is being realised early by £43m being made available in advance by the Millennium Commission to the Dome.

"It does not increase by £1 the amount of lottery money that goes into the Dome."

Dome minister Lord Falconer

Lord Falconer added: "It was always envisaged that the Dome would use its receipts from the legacy as part of its budget and this is simply giving effect to that between now and the end of the year."

The announcement of the bridging loan follows reports that the Greenwich attraction would have to close in October because of cash problems.

But the NMEC has denied the allegations and union officials have been given a "categorical guarantee" by management that the Dome will stay open for the rest of the year.

A union spokesman said: "We have been assured that all jobs are safe. It appears that the reports of the Dome's demise have been somewhat exaggerated."

The controversial Dome has already received £89m of extra National Lottery money this year from the commission.

Advance payment

A spokesperson for the commission said it was "mindful of the fact that the £53m will not be available until the end of the year and the commission will therefore advance payment against this asset".

He added: "The commission will make available up to £43m against the expected receipt of £53m on condition that the income from the sale is made directly to the Millennium Commission.

"Further conditions are that there will be continued regular and detailed reviews of NMEC's financial position and the strengthening of the financial management team."

The commission added that it was "incumbent on NMEC to look at the rest of the year and live within their means which has always included income from the sale of the Dome.

Genuine cost savings need to be identified and it is for NMEC to make decisions relating to staffing and the arrangements for the handover to Nomura."