Dome's future thrown into doubt

The removal of preferred bidder status was unexpected

There is growing uncertainty about the future of the Millennium Dome as the government has thrown open the race for bids.

Legacy plc has lost its preferred bidder status and it is unclear if an alternative bid led by the Dome's former chief executive, Pierre-Yves Gerbeau, has adequate funding.

We are the only ones who have a vision for the Dome as a public venue

Pierre-Yves Gerbeau

Dome Minister Lord Falconer has denied that the protracted sale process is an embarrassment to the government.

The surprise decision to remove preferred bidder status from Legacy follows criticisms of ministerial "mishandling" of the Dome sale.

Mr Gerbeau refused to comment on the government's motives, and he told BBC News Online: "We are the only ones who have a vision for the Dome as a public venue, we want to keep it as a public venue and that's why we are favoured by the British public."

He said he was "thrilled" by the government's "courageous" move and said a fresh bid could be ready in weeks.

Lord Falconer said the government was keen to conclude a Dome sale "as quickly as we can" but said ministers would not be rushed into a decision.

Lord Falconer: Time ran out for Legacy

Shadow Cabinet Office Minister Andrew Lansley accused ministers of presiding over a fiasco.

He said the option of bulldozing the Dome should be considered.

The 14 February deadline set to conclude negotiations with Legacy for the sale of the Greenwich site passed without any agreement.

Other bidders will be allowed to start negotiations while discussions with Legacy continue.

Legacy chief executive Robert Bourne expressed surprise at the government's announcement and confirmed that its bid would be reviewed.

Mr Gerbeau said his group would be prepared to rent the dome if the government decided to sell off land around the site.

Pierre-Yves Gerbeau: Says he has financial backing

He wants to develop the Dome site into a world-class visitor centre capable of attracting stars like Michael Jackson or sporting events like a Lennox Lewis-Mike Tyson fight.

However, BBC political correspondent John Pienaar said Mr Gerbeau has so far failed to secure the financial backing needed to fund his proposals.

Legacy, which has bid £125m for the site, wants to turn the site into a hi-tech business centre.

A decision on the Dome's future is needed before the planned auction of its contents, scheduled for the end of this month.

Norman Baker, the Liberal Democrat spokesman on the Dome, told BBC News 24: "To lose one preferred bidder is unfortunate, to lose a second is perhaps careless.

To lose one preferred bidder is unfortunate, to lose a second is perhaps careless

Norman Baker
Liberal Democrat spokesman

"This has been going on for a year now and we're back to square one."

Lord Falconer rejected suggestions that the decision to search for a buyer for the Dome would be driven by "any sort of electoral terms".

He said Legacy had been made preferred bidder in November on condition that it was ready to exchange contracts by 14 February and satisfy various conditions.

"Whilst they have made great progress, they haven't satisfied all those conditions.

"In those circumstances they lose the right to negotiate exclusively with the government and the government thinks the right course at this stage is to open it up for other people to come forward with their expressions of interest."

He said the government had received 72 expressions of interest since Nomura withdrew its Dome bid.

John Prescott: Keen to 'test market'

He added that Legacy would not be entitled to compensation because its rights expired on 14 February.

Deputy Prime Minister John Prescott said the government wanted to "openly test the market".

He said there had been "considerable expressions of interest" from other parties.

Expressions of interest will be assessed by an advisory team.

No deadline has been set so far for the completion of any deal.