Press Release - The Millennium Dome
9 November 2000
Sir John Bourn, head of the National Audit Office, told
Parliament today that the targets for visitor numbers and income
required by the Millennium Dome were highly ambitious and
inherently risky. They involved a significant degree of financial
exposure on the project, which materialised when the targets were
missed.
Sir John was commenting on the outcome of the National Audit
Office examination of the financial performance of the project
since the Dome opened.
The Report acknowledges that opening the Dome on time was a
major achievement and that the Dome has attracted more paying
visitors than any other UK "pay to visit" attraction. But, as is
well known, the New Millennium Experience Company, established to
run the Dome, has experienced severe financial difficulties during
this year. Visitor numbers have been substantially lower than the
12 million paying visitors forecast in the original business plan;
and by September 2000 the Company was planning on the basis of 4.5
million paying visitors and 6 million in total.
In the face of the severe shortfall in the Company's revenue,
during the year 2000 the Millennium Commission has approved four
additional grants totalling £179 million, and the amount of grant
funding has increased from £399 million to £628 million, an
increase of £229 million or 57 per cent. The Report looks in detail
at changes in the overall cost and income assumptions over the life
of the project and in particular at how far visitor numbers and
revenues have varied from those forecast and required. It also
examines key factors influencing performance.
Sir John said today:
"Building and opening the Millennium Dome on the very
short timescale required was a tremendous achievement. But the New
Millennium Experience Company has experienced severe financial
difficulties this year and has required considerable additional
lottery funding.
"The main cause of these difficulties is the failure to
achieve the visitor numbers and income required. The targets were
highly ambitious and inherently risky leading to a significant
degree of financial exposure on the project. In addition, the task
of managing the project has been complicated by the complex
organisational arrangements put in place from the outset, and by
the failure to establish sufficiently robust financial
management."
Notes for Editors
Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
The Comptroller and Auditor General, Sir John Bourn, is the head
of the National Audit Office employing some 750 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 762/00
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