Dome's chairman resigns in funds row

The chairman of the company running London's troubled Millennium Dome - showcase of Britain's Year 2000 celebrations - resigned…

The chairman of the company running London's troubled Millennium Dome - showcase of Britain's Year 2000 celebrations - resigned yesterday, officials said.

Britain's Millennium Commission, which distributes lottery funds for projects, had made the departure of New Millennium Experience Company (NMEC) chairman, Mr Bob Ayling, a condition for a £29 million cash injection.

Originally, the cash had been offered on condition that Mr Ayling resign, but yesterday the Millennium Commission said it had withdrawn the ultimatum and that Mr Ayling had voluntarily stepped down anyway.

"Bob Ayling decided that his resignation was in the best interests of the Dome," said the minister responsible for the Dome, Lord Falconer.

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Mr Ayling was replaced by Mr David Quarmby, a fellow board member of NMEC, the company said early today.

Mr Quarmby is chairman of both the British Tourist Authority and the Docklands Light Railway underground line.

The company said in a statement that Mr Ayling had indicated at a board meeting that he wished to stand down as chairman.

"This was accepted with great reluctance by the board," it said.

The opposition Conservatives said Mr Ayling was a scapegoat for the failings of Lord Falconer.

"If people are going to be fired for what is a national fiasco it seems to me a little unreasonable to go on sacking people down the line," the Conservative spokesman, Mr Peter Ainsworth, said. It was the second personal blow this year for Mr Ayling, who was ousted as chief executive of British Airways in March after four turbulent years in the job.

The Dome's chief executive, Mr Pierre-Yves Gerbeau, asked the Millennium Commission, chaired by the Culture Secretary, Mr Chris Smith, for the extra money to stave off bankruptcy and save about 5,000 jobs.