Examination of Witnesses (Questions 300
- 308)
THURSDAY 29 JUNE 2000
MR ROBERT
BOURNE, MR
TOM QUINN,
MR JOHN
PRECIOUS AND
MR BRUCE
WALKER
Mrs Golding
300. I find it very interesting. It is a very
big space in the Dome. How many people have you got interested
already in this concept? How big would you envisage building it
in the first year? How would you decide how much space you are
going to take up on this?
(Mr Bourne) The demand is immediate for space from
the very large companies such as 3Com, BT and NTL. The demand
is immediate from the academic community such as Imperial College
and the Open University. There is an immediate demand, there is
a huge under supply of space in London and the South for the small
and medium sized enterprises. Right today there is a huge demand
and an under supply in Central London. The Dome itself is located
a very short distance from the London Heliport, just outside Canary
Wharf. Communications can be brought very readily, it is a short
pipe away and they can be brought very readily and make communications
excellent. This is part of the problem in London, suiting these
high technology companies, that even if they can find the space
at those high rates in Central London they are so often 100 yards
off the ring and that is the advantage of this location.
301. I see in your projection a very small amount
of this land you would project to be retail, leisure and hotels
which affects many of the local people who have been trained in
that. My concern, as is Mr Fearn's, is what is going to happen
to them?
(Mr Bourne) As a centre of innovation this is geographically
opposite the business of Canary Wharf and it is in between the
new Excel Exhibition Centre. I feel that obviously when that opens
for business that will be a large employer in itself. The great
opportunity here is I think the re-education and training of a
workforce to participate in what we have right now, an industrial
revolution going on with the new economy. There is the advantage.
Obviously there will be costs of doing that and the numbers will
vary accordingly.
302. How is this going to relate to small businesses
as you build them? Are you just going to build big buildings for
big businesses or small ones?
(Mr Bourne) No, a huge variety of size and a huge
flexibility in actually offering the accommodation and services
that a small business requires. We will be able to accommodate
literally the one man incubator through to a much larger requirement
by a core tenant such as 3Com who may require a much larger amount
of space on a longer fixed term.
303. Briefly, transport. Obviously you have
got all these different companies working there, you will need
a much bigger area for transport or bringing things in or people
arriving in cars, what are your thoughts on that?
(Mr Bourne) Parking and transportation is a big problem
for businesses in a city in any event. I see there is unique communication
into the Dome via the Jubilee Line, it must be the most advanced
and fantastic system. The links are tremendous. No doubt in years
to come there will be river crossings in addition. I think that
the make up of the types of users of this high tech campus will
come on the Jubilee Line and we want to look into perhaps services,
river services, as well. I think the times we remain open will
be constrained very much by the opening times of the Jubilee Line.
Mr Faber
304. Obviously your proposals in content terms
are wholly different from the previous people and they are wholly
different from what is there at the moment. You will have to strip
out what is in there. What timetable for the transfer and building
work and the eventual opening have you got?
(Mr Bourne) The demand is immediate for accommodating
a number of small businesses and incubators. What we would seek
to do is we would undertake the development in three phases within
the Dome. Those phases would be approximately 350,000 square feet
of space per phase. We imagine that will take us three to four
years. As I said, the demand is immediate and there are a number
of temporary buildings, they are referred to as temporary buildings
outside the Zone but on the land that is the subject of the property.
We would like to use those immediately to start accommodating
certainly the demand from Imperial College and a number of venture
capital incubators which is immediate. Although these are termed
temporary buildings, this is quite luxurious accommodation and
they are ideally suited. This campus could be in business and
in occupation within three months of us being on site and our
first phase starting.
305. Presumably you have had discussions with
those running the competition in the same way as the others have
about the degree of governmental interest in you subsequently,
both in terms of content and in terms of revenue sharing?
(Mr Bourne) Yes.
306. Can you tell us a little bit more about
that? Again, on the content issue, the fact you have got this
far presumably implies they are very happy with what you are proposing,
obviously, but the Government or the Millennium Commission will
not seek to become involved in what you do inside the Dome afterwards?
(Mr Bourne) No.
307. They will seek to enter into a profit sharing
arrangement with you?
(Mr Bourne) Profit sharing, if I may answer that,
with a revenue stream as opposed to profit sharing.
308. Obviously the other bidders, their revenue
stream is dependent on visitor numbers and they have some idea
of what has happened there already over the past year. In your
case presumably it would be based not on cash flow and forecast
but on rental values?
(Mr Bourne) Our revenue stream will be a guaranteed
stream regardless of the outcome.
Chairman: Gentlemen, thank you very much
indeed. I think this is the first time a Parliamentary Committee
has enabled the public to hear how different bidders would use
a public asset and, therefore, you have helped us to advance democracy
a little bit. Thank you very much.
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