The NEC Group could be put on the market to raise cash desperately needed by the city council to fund its massive equal pay bill.
City councillors have been privately briefed on options to sell some or all of the Council’s 99.99 per cent share holding in the NEC, ICC and NIA.
And the council’s cabinet has agreed a private report setting out future options for the NEC Group.
In public Cabinet members only confirmed that the NEC, which was opened in 1976, needs considerable investment to upgrade and stay at the forefront of the exhibition market - and this is more likely to come from the private sector.
The Labour run council was criticised for suppressing the report, with claims that the taxpayers of Birmingham had a right to know what is being done with their investment in the NEC.
Opposition Tory deputy leader Robert Alden (Erdington) said: “I understand financial details need to be kept secret, but we are not even listing options for something the taxpayers should have a say on. We are not able to have a public discussion on this, it is not acceptable.”
Lib Dem leader Coun Paul Tilsley (Sheldon) said: “We are facing a number of challenges, parts of the NEC are tired and in need of refurbishment. But this is difficult given the financial climate so we need to look at alternative options.”
Although the Labour leadership refused to directly confirm the sale plans, the cabinet member for contracts and procurement Coun Stewart Stacey (Acocks Green) dropped the strongest of hints. “If it is to continue to be an economic engine for the region it needs investment. The previous Tory-Lib Dem administration maxed out the council’s credit card on prudential borrowing and we have no capital funding. The only way to do this is through private sector investment.”
Council leader Sir Albert Bore said that more arenas had opened in recent years providing competition and the NEC ‘needs to keep up’.
The council leadership has been urged by both backbenchers and Local Government Secretary Eric Pickles to sell of some of its £6 billion assets to cover parts of the equal pay bill which earlier this year stood at £890 million and is still rising following a string of disastrous court judgements.
These assets include the NEC Group, offices, schools, council houses, land, shares in Birmingham International Airport and shopping parades, including the Pallasades/Grand Central shopping centre at New Street Station.
The public report to Cabinet states that when last independently assessed in 2008 the NEC Group delivered £2 billion economic benefit to the region and supported 29,000 jobs. It is also though there is considerable room for growth on the NEC site.
