Culture secretary Tessa Jowell has told the House of Commons that the London Eye's future in SE1 is secure, whilst negotiations continue between the wheel's operator and the South Bank Centre.
Tessa Jowell at last year's National Lottery Day on Bankside
The minister rejected calls from Mr Cohen for the wheel to be listed.
But Vauxall MP Kate Hoey, writing in the Daily Telegraph, says that it is "astonishing ... that Jowell has done so little to resolve the ongoing dispute".
Referring to the Mayor of London's threat to issue a compulsory purchase order for Jubilee Gardnes, she writes: "Clearly he [Ken Livingstone] is more sensitive to the damage being done by the SBC to the London bid than the Secretary of State."
In a final withering reference to Tessa Jowell, Ms Hoey – herself a former sports minister – adds: "If the person most responsible in Government for the 2012 London bid cannot prevent one of their own quangos, funded from the public purse, behaving in such a shabby way over the most popular visitor attraction in London, what hope is there for an Olympic project delivered on time and within budget?"
• More on this story: London Eye "held to ransom" in South Bank row.