But it still will not be British

Mandelson Defends Dome Decision

The new Teflon-coated glass fibre cladding will cost more than twice as much as the planned PVC-coated polyester skin, but will extend the dome's life to at least 25 years, giving the capital a lasting new landmark.

Mr Mandelson, the Minister without Portfolio who is responsible for the £250 million dome project, argued that the switch made sound sense even though the original German contractors will have to be paid a six-figure sum in compensation.

He said the Government had taken on board both environmentalists' concerns about the materials being used and doubts, including those voiced by minister Clare Short, about the value for money of a building whose original lifespan was to have been between 10 and 15 years.

The BBC's Nick Robinson reports on the dome controversy
Dur: 3'21"

Earlier this week it emerged that Ms Short, the International Development Secretary, criticised the original scheme as a "silly, temporary building" in an interview given before the election.

Mandelson: 'I'm Teflon man'

Mr Mandelson confirmed that both he and the Deputy Prime Minister John Prescott were aware on Monday, when the German firm's involvement sparked a political row, of the possibility of a contractor switch.

Mr Prescott angered the British construction industry then by saying it was a "sad reflection" on their competency that no domestic firm could be found to fulfil the contract.

"He (Mr Prescott) knew that the option of switching the material from PVC to ... coated glass fibre was actively being sought, but we couldn't make an announcement until we knew that we had a secure supply of it and that we identified during the course of this week," said Mr Mandelson.

"Having been PVC Man, I am now Teflon Man," joked Mr Mandelson.

But the Conservatives cited the change of heart about the contract as evidence of governmental confusion about the project. Shadow Culture, Media and Sport minister Patrick Nicholls said the Government had performed a U-turn.

"Peter Mandelson's sudden U-turn over the contract to construct the roof of the Millennium Dome may have papered over his split with Clare Short, by extending the life of what she has called `a silly temporary building', but it leaves many unanswered questions," said Mr Nicholls.

"Clearly there can be two views on the dome. But a far more fundamental issue is ministerial competence. That has been utterly lacking in this fiasco. To call this lot a circus would be unkind to professional clowns," he said.

The New Millennium Experience Company is negotiating to compensate Koch Hightex for their contract's cancellation.

The final figure is likely to be in six figures, although an NMEC spokesman said he was surprised by some reports that it might be as high as £500,000.

Koch Hightex has warned that unless it was satisfied by the compensation offer, it would consider litigation against NMEC.

"We are mystified as to what is happening and why the Government should now want to start again from scratch with a new team and further delay to the project," said one of the company's directors, David Walker.

The company said that originally it tendered for both PVC/polyester and PTFE/glass coatings - the latter being the Teflon option to which NMEC has now switched.

It said its original Teflon tender would have cost less than the contract which had now been signed with Birdair.

"We have been working on time for four months and could produce the Dome in PTFE/glass as desired, since we are the world's biggest manufacturer," insisted Mr Walker.

The German firm declined to comment on how much compensation it was seeking. However, it is understood that it may view its work on the project to date as being worth £2 million or more.