I am today announcing the key performance targets that have been agreed for the Queen Elizabeth II Conference Centre for the period 1 April 2008 to 31 March 2009.

The agency's principal financial target for 2008-09 is to achieve a minimum dividend payment to the Department for Communities and Local Government of £1,340,000 with an additional dividend payment of £360,000 if trading revenues meet target. The agency will pay an exceptional dividend to the Department for Communities and Local Government in December 2008 of £2,800,000.

An operational target has been set to achieve room occupancy within the centre of 71 per cent. of capacity.

The agency also has the following quality of service targets:

Overall score for value for money satisfaction of greater than 90 per cent.

The number of complaints received to be less than two per 100 events.

An average response time when answering complaints of less than four working days.

Return on Capital Employed

HM Treasury set an annual return on capital employed of 6 per cent. for the centre's trading fund activities.

External review

During the first quarter of 2008-09, the agency will conduct a strategic review to consider the following:

1. The opportunity to sustain and grow the existing conference business in its current marketplace. This will include:

An assessment of the UK conference centre market generally, commenting on growth, segmentation and trends, and how the QEIICC is positioned within it;

The opportunity to leverage value from the Olympics;

An assessment on the amount and timing of any investment required in the building; and

An assessment as to whether a private sector operator of the business might create additional value, and options for introducing such an operator.

2. The potential value of the site to a third-party developer on both a current use and a change of use basis.

3. To advise of any further strategic options that could create value to the taxpayer.