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EDITIONS
Monday, 27 May, 2002, 15:35 GMT 16:35 UK
Dome 'giveaway' for developers
Millennium Dome
The government will profit from development
The Millennium Dome is to be given away to developers for nothing, according to reports.

A consortium called Meridian Delta is buying the Dome - plus up to 200 acres of prime development land on the Greenwich peninsula without any money changing hands, several newspapers suggest.

In return, the government will receive a share of the profits from the development of the site with a proposed 4bn "mini city" of offices and houses.

Lord Falconer
Lord Falconer says reports of bridge deal are "wrong"

Dome minister, Lord Falconer of Thoroton, has refused to reveal precisely what the deal includes.

But announcement on the issue is expected on Wednesday.

Shadow culture secretary Tim Yeo has called for an immediate announcement as to how much the Dome deal would cost.

"At present, after almost 1bn has been spent, there is still no certainty about whether, when, and how much any of this will be recovered," he said.

The Sunday Times reported that in order to complete the deal, the developers were demanding a new Thames crossing - linking Greenwich to Silvertown on the north bank - at a cost of 200m.

Wrong

Lord Falconer, however, categorically denied the government was planning a third London crossing as a "sweetener" in the Dome deal.

He told GMTV's Sunday Programme that newspaper reports that taxpayers would be landed with a 200m bill as part of the deal to sell the Dome were "wrong".

"What negotiations are about is about developing the property - that is Greenwich and the Dome together - so the government participates in any profits that are made," he said.

A spokeswoman for the Department of Transport, Local Government and the Regions said that any river crossing was in fact a matter for London Mayor Ken Livingstone.

She said: "Any decision on a Silvertown crossing is a matter for the Mayor which the DTLR cannot pre-empt."

Better offer?

A Meridian Delta spokesman has also denied that any deal was dependent on a new river crossing.

"Our plans for the Dome to host a superb 20,000 seat arena and the regeneration immediately around the Dome are also not dependent on a third river crossing," he said.

But Mr Yeo insisted that the inclusion of a river crossing in any deal would "materially alter" the value of the site.

"If other prospective bidders had been aware that a couple of hundred million pounds was going to be poured on top of the 700m that has already gone in, to provide a river crossing, that might indeed have attracted many more bidders who would have made a much better offer than Meridian Delta has."

He told BBC Radio 4's Today programme: "As usual with Lord Falconer, we never quite get the full truth."

'Value for money'

Meridian Delta's backers were reported to include the Australian property developer Lend Lease and British developers Quintain.

Lord Falconer said the principle of the deal was a "joint venture for the Greenwich peninsula and the running of the Dome as an arena".

"Both arrangements involve profit sharing as far as the government is concerned.

"It's got to be a value-for-money deal. It's got to be the best deal that is available and it has got to be a deal that regenerates that part of London," he said.

Last week, the government admitted about 4m of public funds had been spent looking after the Millennium Dome since it closed at the end of December 2000.

The money has been spent on management, maintenance and security.

 WATCH/LISTEN
 ON THIS STORY
The BBC's Carolyn Quinn
"The Dome itself will become an arena for sports and music"
The BBC's Daniel Boettcher
"This has now been a three year process"

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See also:

01 Feb 02 | UK Politics
18 Dec 01 | UK
18 Dec 01 | UK Politics
12 Nov 01 | UK
03 Nov 01 | UK
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