Millennium Dome

– in the House of Lords at 3:00 pm on 8th October 2007.

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Photo of Lord James of Blackheath Lord James of Blackheath Conservative 3:00 pm, 8th October 2007

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I note my interest as former chairman of the Dome company, although the subject matter of this Question was excluded from my terms of reference at the time.

The Question was as follows:

To ask Her Majesty's Government how they will divide any revenue from the sale or lease of the Millennium Dome between the millennium lottery commission and the owners of the land, English Partnerships.

Photo of Baroness Andrews Baroness Andrews Parliamentary Under-Secretary, Department for Communities and Local Government, Parliamentary Under-Secretary (Department for Communities and Local Government)

My Lords, English Partnerships, the national regeneration agency, will retain the first £30 million of development receipts. Thereafter, 13 per cent will be passed to the National Lottery. Of the £550 million forecast cash proceeds from the deal, English Partnerships currently estimates that the lottery is likely to receive a total of approximately £67 million phased over the next 15 years. This arrangement for the division of proceeds was announced to Parliament in 2004.

Photo of Lord James of Blackheath Lord James of Blackheath Conservative

My Lords, I thank the Minister for that Answer. My understanding was that the original value of the land was £450 million, which is less than the value that the noble Baroness has just indicated would be created over time. Will she indicate how the annual return to the taxpayer will perform during that time? What will be the effective annual rate of interest on the outstanding balance, or reducing balance, of £450 million standing in the interest of the taxpayer, which is otherwise lost to the use of the community?

Photo of Baroness Andrews Baroness Andrews Parliamentary Under-Secretary, Department for Communities and Local Government, Parliamentary Under-Secretary (Department for Communities and Local Government)

My Lords, as I do not have that sort of detail in my very extensive briefing, I will write to the noble Lord. In terms of the value to the taxpayer and the regeneration of the peninsula—I pay tribute to the noble Lord for the sterling work that he did on winding up the NMEC and making such a success of it—we are looking to a major regeneration project. It will generate £4 billion of private investment, 10,000 homes, 24,000 jobs, commercial floor space, schools and health centres. It is a magnificent prospect for the Greenwich peninsula, which is one of the most deprived parts of London.