Unity Union
GMB Experts in the World of Work
Join GMB today
 Follow @GMBWestMidlands

GMB Birmingham & West Midlands Region

GMB has grave concerns over sale by Birmingham city council of the national exhibition centre group

Thursday, March 6, 2014

Sale could lead to increased costs to City residents and the wider users of these prime facilities and to either job losses or reduction in terms and conditions of employment says GMB. 

GMB, the union for public sector workers, responded to the announcement that Birmingham City Council plans to sell off the company which runs the National Exhibition Centre and National Indoor Arena. 

See notes to editors for copy of report on the Press Association newswire. 

Joe Morgan, GMB Regional Secretary said “Whilst we are happy that Birmingham City Council intend to honour their obligations in respect of equal pay settlements we in the GMB has grave concerns that the NEC group is to be sold off to the private sector. This will inevitably lead to increased costs to the residents of Birmingham and the wider users of these prime facilities and could lead to either job losses or reduction in terms and conditions of employment.

GMB will be keeping a watchful eye on developments.” 

End 

Contact Joe Morgan 07794 247960 or Samantha Jones on 07939 874272 or 0121 550 4888 

Notes to editors  

Report of sale on Press Association 

Birmingham City Council has announced plans to sell off the company which runs the National Exhibition Centre and National Indoor Arena. The authority said the disposal of the NEC Group, which also operates the LG Arena and the International Convention Centre, would allow all the venues to maximise future growth opportunities. 

Insisting that the decision to sell off the assets was not a direct response to the council's massive equal pay liabilities, council leader Sir Albert Bore said the NEC Group had reached a point where it needed to "adopt the financial disciplines of a private, rather than a council-owned company". 

Media reports have suggested that the venues may be worth at least £300 million but Sir Albert refused to give even a "ball-park" figure for how much the council hopes to raise.

Under the proposals, the LG Arena and the National Exhibition Centre, which hosts international events including the Crufts dog show, could be made available on a 100-year lease. 

Some currently unused land at the NEC site will be retained by the council for future development, and the local authority says any buyer would have to share its vision for the venues. 

Meanwhile, shorter leases of around 25 years would be drawn up for a sell-off of the National Indoor Arena and the International Convention Centre.Speaking to reporters at Birmingham's Council House, Sir Albert claimed the plans would preserve and enhance the NEC Group's economic impact. 

"An open sale process has been identified through an extensive strategic review process as the way to achieve full value for this internationally-renowned asset, whilst achieving the other principal objectives of enabling the group to achieve its potential," 

Sir Albert said. Sir Albert conceded that the announcement was tinged with some sadness given the council's long-standing ownership of the National Exhibition Centre, which was opened by the Queen in 1976. But he added: "I want to look forward rather than backwards. I think that's how we should all look at this because there is an exciting future for the NEC Group. 

"A key purpose of the city council investing in establishing the NEC Group more than 30 years ago was to drive economic development and regeneration. 

"This has been achieved, but now the NEC Group has reached a point in its evolution where it needs to be able to adopt the financial disciplines of a private, rather than a council-owned company to enable the next stage of strategic development." 

Martin Angle, chairman of the NEC Group, said: "We look forward to working with Birmingham City Council in preparing the NEC Group for this major step forward and believe that its iconic status and portfolio of venues and businesses is likely to attract strong interest from potential buyers, from both the UK and overseas."

Share this page
+1