Dome bidding to start all over again

LONDON, England (Reuters) -- Britain reopened the bidding for the sale of the Millennium Dome on Thursday, reigniting the controversy over what has become a great white elephant for Labour Prime Minister Tony Blair.

The government said it had stripped the Legacy consortium of its sole bidder status for the Dome. It invited others to make offers for the ill-fated attraction on the banks of the River Thames.

The Dome has gone from international attraction to national embarrassment

Blair said the Dome would be the "envy of the world" when it opened in January 2000 as part of millennium celebrations.

But critics scoffed at its eclectic, low-brow exhibits. Despite gobbling up nearly a billion pounds, most of it lottery money, the Dome went from international attraction to national embarrassment almost overnight. It closed on December 31.

Now the government may not be able to decide the Dome's future by May, when Blair is expected to call an election.

"This (process) will not be driven by any sort of electoral timing," insisted Lord Falconer, minister in charge of the Dome.

"I'm sure there will not be a final conclusion before May," he told BBC radio, but added that steps may have been taken by then so that people would know the Dome's future.

"It's a terrible advertisement for the incompetence of New Labour," opposition Tory leader William Hague said of the Dome.

Legacy was livid at the government's decision. But the Frenchman who directed the Dome's operation while it was open, Pierre-Yves Gerbeau, said he would put in a bid within weeks.

Legacy had offered 125 million pounds ($181.1 million) and wanted to turn the property into a hi-tech business park called "Knowledge City." The consortium is led by property entrepreneur Robert Bourne, a Labour Party supporter.

"This is an extraordinary decision, and we just can't understand it," a Legacy spokesman said, adding that the company was now giving "serious consideration" to whether it wanted to continue with its bid at all.

Falconer said Legacy could still bid but would now have to compete with others, having failed to convince the government it could deliver on several conditions, including one about the number of tenants in the business park.

"The right course is to open it up to the market and say you come forward with what you think should be done with the Dome," Falconer told BBC radio.

Gerbeau said he wanted to keep the Dome open as a visitor attraction and also create a "global entertainment venue" at the site near Greenwich.

"This is very exciting news," he said in a statement.

A property consortium including the company run by the Duke of Westminster, one of Britain's richest men, said on Monday it had decided against joining Legacy's bid.

Legacy later named property company Teesland Group as its new partner, hoping the fresh backing would clinch the deal.

Copyright 2001 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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The Millennium Dome

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