Select Committee on Regulatory Reform Fourth Report


3 Purpose of the proposal

5. The purpose of the proposal is to increase the geographical limits within which the Museum of London is permitted to operate, thus making it legally possible for the Museum of London to merge with the Museum in Docklands, which is situated outside the current limit for the Museum of London's operation.

Background to the proposal

6. The Museum of London was established by the Museum of London Act 1965 (the 1965 Act), which had the effect of merging two existing museums, the London Museum and the Guildhall Museum, defining the functions of the new museum and appointing a Board of Governors to manage it and hold its property.

7. The 1965 Act required the Board to acquire premises situated in the City of London for the purposes of maintaining and exhibiting their collections and subsequently to keep their collections at those premises. The Act does, however, permit the Board to store or exhibit objects in their collections at other places, that is, other than at their own premises, including premises outside the confines of the City of London. The effect of the 1965 Act has therefore been to allow the Museum of London to make items in its collections available for exhibition by other institutions, at locations outside the City of London, but the Museum may not itself acquire any exhibition facility which is outside the geographical limit imposed by the Act.

8. Parliament's intention in passing the Museum of London Act 1986 (the 1986 Act) was, among other things, to amend the constitution of the Museum's Board of Governors in the light of the abolition of the Greater London Council. Of the six members of the Board who had, prior to the 1986 Act, been appointed by the Greater London Council, three are now appointed by the Prime Minister and three by the Corporation of the City of London. The Prime Minister and the Corporation both now appoint nine members each.

9. The 1986 Act also introduced a more explicit definition of the functions of the Museum's Board of Governors, providing that the Board was required to:

10. The Department have explained that the Museum of London began assembling material specifically relating to the port of London and Docklands areas in the early 1980s, as a response to the closure of the London docks.[3] The result has been a 'Port and Docklands' collection which is regarded as an integral part of the Museum of London's 20th century collections. It was the collection of this material which led to proposals for a new museum in the Docklands which would focus on the history of the area, of commerce on the Thames and the people who were involved in shipping.

11. The Department refers to the substance of evidence submitted in 1981 by the Board of the Museum of London to the then House of Commons Education, Science and Arts Committee. In its evidence the Board indicated that it had resolved to seek opportunities to develop new display space for exhibitions on London's maritime and industrial past and they preferred that these new facilities should themselves be situated within the Docklands area. In their Annual Report for 1981/82, the Board indicated their intention to establish a trust to take forward the development of a separate Docklands Museum.[4] In order to develop the Museum the Board would seek to identify a suitable developer who would provide the 'shell' and 'core' for the new facility; the remaining building and fitting out costs would need to be met by the London Docklands Development Corporation, and a Museum in Docklands Trust would need to be established to raise the necessary exhibition and equipment costs. The Board estimated that it would cost £15 million to establish the new Museum.[5]

12. The Department record that the Museum of London's plan was made feasible in 1997 when the Heritage Lottery Fund (the Fund) approved a grant for £11.8 million to fund capital works for the project. Other contributors also agreed to make grants in support of the project, including the London Docklands Development Corporation which made a grant of £3.14 million.

13. From June 2000, during the course of the development of the Museum in Docklands, the Fund began to be concerned about the way in which the project was being approached by the Museum's Trustees and in particular about their assumptions concerning likely visitor numbers.[6] The Fund considered that the Trustees had failed to take adequate account in their business plan of the way in which market conditions were changing for operators of Museums after the national museums were opened to the public free of charge. In the course of 2001 delays in building work began to give rise to additional development costs. The Department have indicated that the Fund came to the conclusion that the new Museum would require "the operational strength of the Museum of London and its ability to lever in additional funding" in order for it to be successful.[7] The Fund furthermore felt that support costs could be reduced if the two organisations were merged and in April 2002 it made a merger a condition of its future support for the Museum in Docklands. The governing bodies of both Museums formally approved plans to seek a merger at meetings in March 2003.[8]

14. The Museum in Docklands was opened to the public on 24 May 2003.


3   Explanatory statement, page 3 Back

4   Explanatory statement, p 4 Back

5   Explanatory statement, p 4 Back

6   Appendix B Back

7   Explanatory statement, p 4 Back

8   Explanatory statement, p 4 Back


 
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Prepared 8 March 2004