So last year I made a request to the HLF under the FOI for some bits of information after an appeal to anyone for suggestions, this is what I received back, unedited:
Dear Mr Charlton,
Thank you for your email.
We are in the process of consulting with the applicant to ascertain whether there is any commercial information contained in the application forms that it would not be proper for us to release.
In the interim we are aware it has been a little while, and therefore thought it was better to respond on these other questions as quickly as possible; and that if you are able to give us a steer on any particular information from the application form that you are interested in, we may be able to pull that out more quickly.
In relation to this specific query, to start with perhaps I could provide with the following information for each of the various applications:
HF-01-00951 - Vulcan to the Sky - Rejected
Vulcan to the Sky NHMF 2002 (9) 10
DECISION: REJECT
Vulcan to the Sky Limited sought a grant of £2,500,000 (57% of eligible costs) to purchase and restore the Avro Vulcan XH558, to fly at air shows in the UK. Expert advice and officers’ advice was not supportive. The aircraft was in good condition for static display and not at risk, and while possibly the only one that could be restored to flying condition there were 20 presently in preservation. Its maximum permitted flying life if the project was approved would be 5 to 8 years. The Board noted that the restoration of aircraft to flying condition was a low priority for HLF funding, primarily because of the flying risks, but agreed that exception to this could be made on the basis of the merits of individual applications. However, they agreed that, in view of the short flying life of the aircraft, the heritage and public benefits would be insufficient to provide value for money for the grant sought. The Board rejected the application, on the grounds of (1) low priority, and (2) poor value for money for HLF funding.
HG-03-00079/1 - Vulcan To the Sky - Approved
Vulcan to the Sky; HG-03-00079/1 HLF 2003 (11) 14
DECISION: STAGE ONE PASS (£2,497,000; 61%)
In November 2002, the Board had rejected an application by Vulcan to the Sky Trust for a grant of £2,500,000 to purchase a Vulcan ZH558, carry out a major maintenance programme, and return it to flight. The decision had been based on the low priority of restoring aircraft to flying condition and poor value for money. The project had since been revised, with the Trust now seeking a Stage One Pass of £2,497,000, the aircraft having now been valued at £125,000.
The revised project had addressed the risk involved in returning aircraft to flying condition. Undertakings had been obtained from BAE Systems and the Civil Aviation Authority on their involvement in managing risk and ensuring airworthiness. The risk was now believed to be no greater than for any commercially operated aircraft licensed to carry passengers. The Board agreed that, in view of the low risk and that fact that several other Vulcan aircraft existed, a grant might be awarded subject to conditions including suitable insurance and an evaluation programme. It was agreed that other grants to restore aircraft to flight would not be considered until the results of the evaluation were known.
The revised project had also addressed value for money concerns and developed public and educational benefits. The aircraft would now be displayed at various shows around the country over a longer period. Although some Trustees were concerned that the public benefits would still only last for a relatively short period of time, others were persuaded by the increased public enjoyment of the sight of this particular aircraft in flight.
Although the Royal Air Force was not providing a cash contribution towards the project, the Vulcan would be flown by RAF crew who would provide training for others. At the end of its flying life, it would be transferred to the Imperial War Museum’s collection at Duxford for display and taxi run demonstrations. Links with Duxford were already being forged.
The Board noted that the specific issues raised when the previous application was rejected had been addressed, and the support for the project from local people, volunteers, and the Committee for the East Midlands. The Board agreed the application was a high priority for funding. They approved a Stage One Pass of £2,497,000 (61% of eligible costs), subject to the following conditions:
- The Trust should submit with their Stage Two application for HLF approval a plan detailing all the access, interpretation and education programmes and materials for the first year of operation plus a strategy for the next four years; this should included details of staffing, measurable targets, and links with partner organisations.
- The Trust should also devise and implement an evaluation strategy for measuring the benefits delivered through this programme, and through the presence of the Vulcan at events where it would fly. The results from would need to be shared with HLF on a regular basis.
- The Trust should have in place adequate insurance to be able to repay HLF grants should any loss or damage be sustained by the aircraft during its flying life.
20 Vulcan to the Sky; HG-03-00079/2 HLF 2004 (6) 20
DECISION: AWARD GRANT OF £2,734,000 (63%)
(INCLUDING UPLIFT OF £238,000 ON STAGE ONE PASS)
In December 2003 the Board had approved a Stage One Pass with a view to a grant of £2,497,000 towards an application by the Vulcan to the Sky Trust to restore a Vulcan A-bomber to flight, to allow it to be displayed throughout the country over its remaining 10 to 15 years flying life, after which it would retire to Duxford to become the centre of their Cold War exhibition. The Trust had addressed the Stage One requirements by producing education, access and interpretation plans and a project evaluation strategy. An uplift of £238,000 was sought to cover an increased rental charge for the hangar. Expert advice was supportive. The Board agreed it was a high priority for funding, and awarded a grant of £2,734,000 (63% of revised eligible costs), subject to the special conditions as recommended.
3. HLF has had no requests, formal or informal, for further funding.
2 & 4. HLF monitors all large projects to ensure that the approved purposes are achieved and that Lottery money is properly spent. When projects are awarded a grant a monitor is appointed. A monitor was appointed to the Vulcan project and has been closely involved in overseeing the project on behalf of HLF since the grant was awarded. The monitor's role is to oversee the project on behalf of HLF, visit the project regularly, examine progress on the works involved, all expenditure and invoices and scrutinise project management. The monitor provides us with regular reports on the project's progress and any requests to drawdown money. Should the monitoring process highlight any problems or concerns, HLF's case officer will meet the grantees with the monitor and agree ways of resolving the issues.
Similarly, we have a great deal of monitoring paperwork, some of which we may not be able to release (most likely, given the financial reporting made, because of a commercial confidentiality) and in any case not without consulting with the grantee to ascertain this. Again, if you are able to be more specific in defining your interest in any way I can probably respond to that more promptly.
Then I received this additional information:
HLF appointed a monitor in January 2005 to monitor and oversee the Vulcan restoration project. The monitor has held and continues to hold monthly on-site meetings with the grantees. Monitoring concentrates on the grantees’ mobilisation on site and all works undertaken as part of the grantee’. This covers scrutiny of : 1. Acquisition of the aircraft
2. Taking a legal charge over the aircraft
3. Acquisition of the hangar lease
4. Completion of the main works supplier’s contracts and indemnities
5. Completion of contracts and indemnities with sub-contractors
6. Establishing Original Equipment Manufacturers contribution to the project
7. Completion of Aircraft hull insurance
8. Compliance with CAA rules for the major overhaul back to flight
9. Compliance with the CAA registration process
10. Fundraising programme development and progress
11. Education programme development and implementation
12. Drawing down HLF grant – monthly requests with full documentation
13. Initiation and regular review of Management Information System
14. Cost Plan and Risk Management Plan initiation and reviews
15. Staff recruitment and employment
16. Arrangements for post-flight housing and display
The monitor provides a full progress report to HLF each month. The report covers all of the above aspects of the project, highlights any problems or issues that need to be resolved and advises whether further funding should be released.