BusinessBusiness RecoveryPAC attacks government over museum rescue

PAC attacks government over museum rescue

The government have rejected criticism from Commons watchdog, the Public Accounts Committee, for failing to call in an insolvency practitioner before 'effectively bailing out' the ailing new Royal Armouries Museum in Leeds.

The MPs said the Department for Culture, Media and Sport, in negotiating a deal to save the museum, only commissioned legal advice not ‘appropriate commercial advice’ from a practitioner ‘although they were faced with a threatened insolvency’.

The watchdog added: ‘Departments should ensure that their negotiation team includes people with previous experience of commercial negotiations and that they are supported by appropriate commercial advice.’

But the DCMS, in a formal response to a PAC report, said it took ‘all possible steps to assess the risks and the value for money’ of different options, including closure, after taking ‘not only legal advice but the advice of its economic advisers’ and the advice from a business consultant appointed by Royal Armouries.

They claimed the outcome kept the £21m debt, incurred by private sector partners RAI Building in running the PFI deal, within the private sector.

But MPs said RAI had retained responsibility for the debt but had held on to the profitable part of the enterprise, including corporate hospitality and parking, while Royal Armouries had taken on the loss-making aspects of the museum.

The Department hit back, insisting they were not giving RAI any public funding and had ensured the museum stayed open at least possible cost.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor