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Rhodri Morgan's statement on the Wales Millenium Centre
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I have written to Sir Alan Cox to reassure him of my continued support for the Wales Millennium Centre but to say with regret that I am not yet in a position to release the Assembly funds earmarked for the Centre.
Sometime ago the Wales Millennium Centre Board was asked to bring forward proposals to a cost of 75m. This was the amount of money that the Millennium Commission and ourselves believed that the project could realistically secure from public and private sectors. The Board have not so far brought forward a proposal that meets this target. I am still in discussion with the WMC about the issues of getting robust cost estimates and private sponsorship.
I am also in discussion with them about the need for evidence that the Centre will be able to operate successfully when it opens. It is absolutely essential that the business plan is robust and credible. We all have to learn lessons from other schemes that looked fine on paper but were not able to deliver the promised balance between income and expenditure when they went into operation.
Tom Middlehurst and I have met with Sir Alan Cox and members of the Board several times in the last few months. Tom is meeting Sir Alan Cox tomorrow (Tuesday) and Officials have been in contact on a daily basis. Indeed, as soon as it became clear that there were difficulties with the project in July when the price put forward by the WMC's contractor was so far in excess of the their cost estimates, I appointed Turner and Townsend as independent assessors to examine the costings and the risk management of the project.
That report suggested that there were many risks and uncertainties that had not been fully worked through and the capital costs for the scheme as originally conceived might be as much as 104m - 30m more than the initial estimate. I made the results of that available to the WMC as soon as was practicable.
Subsequently, the WMC brought forward a new option. This was however once again well above the 75m budget that we and the Millennium Commission considered credible. Again, Turner and Townsend were asked to examine the revised plans and again they advised me that the likely cost would be 94m, considerably higher than the WMC's 83m estimate.
It is important that all aspects of this matter are open to scrutiny and I will be making the first Turner and Townsend report available on the Assembly web site shortly. The second will be published when it is available. I also propose to put the matter before the Assembly as soon as practicable.
Everyone with an interest in the cultural life of Wales wants to see this Centre built and operating successfully. Tom and I have continually stated my support for it both publicly and privately to the WMC. But lessons learnt else where show us that until we have in place robust plans and management arrangements in which everyone can have confidence then we would be irresponsible to go ahead.
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National Assembly of Wales
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Tuesday, October 3, 2000 |
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