Bad debt write off for the Greenwich Peninsula Festival

Meeting: 
MQT on 2013-05-22
Session date: 
May 22, 2013
Reference: 
2013/1207
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

On 27th March 2013 you signed Mayoral decision MD1179 approving the write off of two debts totalling £99,000 in relation to the Greenwich Peninsula Festival. Do you have any plans to examine whether lessons can be learnt from the way that the Greater London Authority and Greenwich Council entered into contracts with Peninsula Festival Ltd?

Answer

Answer for Bad debt write off for the Greenwich Peninsula Festival

Answer for Bad debt write off for the Greenwich Peninsula Festival

Answered By: 
The Mayor

The Royal Borough of Greenwich (RBG) contracted with Peninsula Festival Limited (PFL) to promote and organise events in the Borough as a whole. As part of this agreement, PFL planned a festival to take place just prior to and, during the Olympic period, comprising of camping and music festivals on ex-HCA land on the Peninsula. However, the level of bookings was much lower than anticipated and the company went into administration.

The few camping bookings were moved to a site in Waltham Forest and the music festival element was scaled back to two events as opposed to the planned fourteen. RBG had agreed a limited warranty of £30,000 which went towards legal fees and any reinstatement costs but the GLA was unable to recoup any income, resulting in a shortfall which had to be written-off. The GLA in good faith and, with high expectations, entered into an agreement with the organisers of the Peninsula Festival, which licensed the land to stage a significant new event for the area.