Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 380 - 399)

WEDNESDAY 12 JULY 2000

LORD FALCONER OF THOROTON, MR BRIAN LEONARD AND MS CLARE PILLMAN OBE

Ms Ward

  380. When Mr Gerbeau came before the Committee, he made it very clear that, as far as he was concerned, NMEC had sufficient funds to get them to the end of the year. Are you as confident?
  (Lord Falconer of Thoroton) To get to the end of the year depends on three things, (1) revenue, which means the visitors we are going to get; (2) costs, and there need to be some cost savings, obviously; and (3) what we get from the legacy. I am confident that there will be enough from those sources to make sure we meet our budget and get to the end of the year.

  381. So you do not anticipate a return to the Commission to ask for more money?
  (Lord Falconer of Thoroton) I think it would be extremely difficult now for there to be any suggestion that there be any additional payment to the Dome. It has to get by, as it were, out of its own resources. I think the legacy competition, which will inevitably involve there being an agreement to make a payment to the Dome, will mean that it will have an asset which it can then use, as it were, to make sure it can get through to the end of the year.

  382. So can we take it there will be no return to the Commission to ask for more money?
  (Lord Falconer of Thoroton) The three sources I have indicated will make sure we get to the end of the year.

  383. When Jennie Page came before the Committee, her comment was that she had suggested to ministers that it would be in their interests and the interests of the Dome if there was a little bit more space between them. Were you part of those discussions?
  (Lord Falconer of Thoroton) Jennie and I had many discussions about the role of the politician and the role of the people involved in the Dome. Everybody, including myself, recognised that the less political controversy there was and the more there was a focus on it being a visitor attraction the better from the point of view of the Dome, but we equally recognised—and Jennie and I were in complete agreement on this—that try as one might, it very frequently was impossible to avoid political controversy about the Dome. Jennie said in her evidence that, right from the inception of the Dome, it had been a matter of political controversy because it had been associated with individual members of both Governments. We both wanted it stepped back from political controversy but we found it was not altogether possible.

  384. Would you have found it easier to allow the design team to take full responsibility for the contents without you being involved?
  (Lord Falconer of Thoroton) They were the people who decided on the contents. They would keep us informed as to what was going on in relation to it but they were the people actually designing it. This was a Dome company-driven design process. The problems, I suspect, were not about them making the decisions about the designs; it was the fact that there was lots and lots of criticism about the decision to start in the first place with the Dome and then what happened subsequently in relation to the expenditure of money.

  385. Did you ever veto any of the contents put forward?
  (Lord Falconer of Thoroton) No, I never vetoed any of the contents. I certainly discussed them; I never vetoed any of them.

  386. In that discussion, did you put forward very strong opinions about the contents?
  (Lord Falconer of Thoroton) No, I did not have very strong opinions about the contents. I expressed views about the contents but I certainly did not veto them.

  387. So you think the question of contents was not a matter for the politicians, but very much the product of the design team?
  (Lord Falconer of Thoroton) I think the detailed design of the contents is plainly a matter for the design team. Obviously we, politically, are accountable, just as the previous Government was accountable, for the Dome overall and one of the things I am accountable to Parliament for is what is actually in the Dome but that does not mean, it seems to me, that the politicians or officials should seek to try and, as it were, take part in designing what is in the Dome.

  388. PY Gerbeau has suggested in his interviews over the weekend that at the end of the year he will "tell all", and will perhaps name those people he believes were responsible for the problems that the Dome has. Are you worried?
  (Lord Falconer of Thoroton) I am not worried, no. I think PY is completely committed to making the Dome a success. He has come from a pure visitor attraction background into something that has a very strong political controversy around it and I fully sympathise with PY having not only to run the Dome on the day-to-day basis but also to deal with all the politics that go with it.

  389. So there is no term in Mr Gerbeau's contract requiring him to keep confidentiality at the end of the day?
  (Lord Falconer of Thoroton) No. There will be the usual commercial confidentiality but he will be free to speak at the end of the year.

  390. And finally, when Jennie Page was here, she mentioned the problems of the school children and the additional one million free tickets that were given to school children. The suggestion was that that was a late idea and that it caused some of the problems in terms of visitor numbers?
  (Lord Falconer of Thoroton) Well, the million free school children was agreed at the time the price structure was agreed for the Dome by which I mean what people paid to come in and I think that was agreed in or about April or May of 1999. It was agreed on the basis that we were determined that, whilst the Dome did have to get revenue from visitors, it should, within that context, reach out as much as possible to people who might not otherwise think of coming to the Dome. If we made available a lot of free school children places that would lead to schools which might not otherwise think of it agreeing to arrange school trips to go and that is what has happened in large measure. Whether the school children who go on those free trips then go back and tell their parents "Let's go to it", or whether they do not come on a paying basis, I have no idea. Jennie said anecdotally there was some suggestion that they did not come back on a paying basis; some people I have spoken to—and, again, it is only anecdotal—say the children, once they have been, urged their parents to go, so it is impossible to tell what the effect on the visitor numbers has been but the reasoning behind it was a determination to reach out to people who would not otherwise go to the Dome.

  391. But the figures we got from Mr Gerbeau suggested that, of the million free school tickets, only 700,000 or so had actually been taken up. Are you a little concerned that those 300,000 free places for children have not been taken up?
  (Lord Falconer of Thoroton) Once one sees the figures go down from the original estimate of 12 million to the lower figures that are now estimated it is not perhaps surprising that the free school children go down as well in relation to that. I can also understand the Dome being keen to market particularly the £8 school children trip at the moment—for reasons that are obvious.

  392. Quite, except if you are running a school budget you will not want to pay £8 a head when you are entitled to free tickets?
  (Lord Falconer of Thoroton) No, but the free tickets are still available. Anybody who wants a free school children trip is able to apply in relation to it.

Chairman

  393. It is worth listening to some of the questions put and some of the answers to take advantage of your presence to set certain things in context, is it not? For example Claire Ward has just asked about free school trips and some of these have been discounted from the attendance fee figures. What do you believe the reaction of some newspapers would have been if you had said there would not have been any free school trips?
  (Lord Falconer of Thoroton) I think there would have been an unfavourable reaction to that and it would have been a matter of criticism of the Dome.

  394. Secondly, I questioned you earlier—and I questioned Jennie Page and Mr Gerbeau as well about this—about the problems with regard to visitor attractions but is it not a fact that what you have was a totally unique challenge; that Disneyland, Paris, run by people with huge experience of theme parks, was such a disaster to begin with they had to close it down and start it all over again, whereas you had to start on a given date, keep going and keep going for a whole year. Others do not do that. Again, if one looks at some of the Millennium projects started under the previous Government and mid-1990s, some of them were way over budget and over timescale. This was delivered on budget, and to time. Compare that with the British Library, for example.
  (Lord Falconer of Thoroton) Yes.

  395. While I certainly would not for a moment minimise the problems and the mistakes that have been made, have not some of those mistakes stemmed from the unique nature of this project?
  (Lord Falconer of Thoroton) Yes, and also that what the Dome has been trying to do is build an attraction, build revenue and build visitor numbers in a year without the sort of brand that, for example, Disneyland has. Even Disneyland, which has a very clear identification in the public mind as to what it was, took a period of three or four years to get its Paris operation to a level where it was a thriving commercial attraction. I think the context you set, Chairman, is very important because what we have achieved is we are now ahead of any other pay-to-visit attraction in the United Kingdom, so we have already received more paying visitors in the year 2000 than the next most popular pay-to-visit attraction in the United Kingdom, and I think that is quite an achievement.

  396. When I visited Disneyland I found I did not go on a lot of the attractions because the queues were too big. A successful visitor attraction has queues and this project has been attacked, on the one hand, for having queues too big and, on the other, for not having queues at all?
  (Lord Falconer of Thoroton) That is right. We have tried to keep the queues down and Mr Gerbeau has made real progress in keeping the queues to a minimum. I know you have all been, or most of you have, quite recently and it is a pleasant, easy experience for the visitor.

  397. And again, it would be interesting to know, we were told by previous witnesses that the impractical visitor targets—14 million all told, 30 million at one stage—were all started when the Dome was conceived, long before it was inherited by the present Government. Again, without underestimating in any way the errors that have been made and the problems that have arisen, is it not a bit barmy for anybody to start off with a huge figure for this attraction? I am Jewish and we have a horror of the evil eye. We will not forecast what is going to happen in case the evil eye descends on us and we are judged on that basis, and those 30 million and 40 million and 12 million figures which you inherited you are going to be judged by.
  (Lord Falconer of Thoroton) That is right. The 12 million figure was there by March 1997 when the budget was put. Ultimately, though, a figure had to be put on it because budgeting had to be done before the venture was embarked upon.

Mr Keen

  398. Could you help us through the decision-making process? How was it decided that there would be a company to run it?
  (Lord Falconer of Thoroton) The structure of a company with a board, an ordinary Companies Act company and a shareholder—the shareholder to be the Government—was decided by the previous Government. It was decided that that structure would be adopted because, although the previous Government had made efforts to get genuine private sector investment into running the Dome, they failed to do it. It was therefore decided that it would be dealt with by this private type structure with money coming from the Millennium Commission. That was decided in 1996.

  399. When was it decided that the chief executive should be Jennie Page?
  (Lord Falconer of Thoroton) There were a number of chief executives before Jennie Page. Jennie Page became the chief executive in January 1997 and she came over from the Millennium Commission where she had been the secretary or the director of the Millennium Commission before that.


 
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