New Year's Eve Fireworks

Meeting: 
MQT on 2013-05-22
Session date: 
May 22, 2013
Reference: 
2013/1208
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

On 22nd November 2012 you signed Mayoral decision MD1100 which approved a budget allocation of an additional £550,000 to enhance the New Year's Eve Marking of Midnight budget following a claim by a company titled in the Mayoral decision as Bidder B that they were unable to accept the financial risk of delivery costs following their sponsor pulling out. Do you consider that in future better negotiated contracts should be drawn up by the Greater London Authority so that a private company that wins a contractual bid for public funding is not able to hold the Greater London Authority to ransom for additional funding?

Answer

Answer for New Year's Eve Fireworks

Answer for New Year's Eve Fireworks

Answered By: 
The Mayor

Given that 2012 was a resource intensive year the GLA adopted a model which sought to reduce the burden on the public purse by the sharing of risk with its contractor. The procurement and use of such models is challenging, as commercial organisations can be reluctant to accept liability for risks which materialise before their entry into arrangements with third party sponsors. In light of such challenges we have therefore reviewed and updated our commercial model for the procurement of the services required for the 2013 event. The procurement process is at an advanced stage, with bids having been evaluated and a preferred bidder identified to whom contract documentation has been issued for execution.

The event generates approximately £38 million worth of economic benefit from the visitors at the event and further significant media profile for London, with over 13 million viewers from a domestic TV audience and an international media value of approximately £8 million.