Birmingham Council to consider selling its NEC Group shareholding
Selling the NEC interest was first proposed by Cllr John Clancy, who challenged Sir Albert for leadership of the Labour group and the council in May. The idea was rejected at the time and Clancy failed to beat Sir Albert.
The future of the NEC Group is discussed in a public report to today’s cabinet meeting. A private report sets out options in relation to the council’s shareholding in the group.
The public report states that the NEC venues are “iconic” and have substantial potential for growth.
All of the economic interest of the NEC Group and 99.99 per cent of NEC Ltd’s issued equity is owned by the city council with Birmingham Chamber of Commerce owning the balance.
The cabinet report states: “The city council has built up the NEC Group to a position of strategic importance to the city and the region.
“A 12 month independent survey by KPMG, completed in 2008, reported in excess of £2bn per annum positive economic benefit on the West Midlands economy. It also confirmed that the Group supports almost 29,000 jobs.
“The National Exhibition Centre is a world class venue on a 610 acre site with 182,000 square metres of covered exhibition space through 20 interconnecting halls. It is linked directly with both Birmingham Airport and Birmingham International rail station and sits at the centre of the UK’s motorway system.
“The International Convention Centre is a premier award-winning business destination hosting more than 450 events a year The LG Arena is one of the UK’s top arena destinations with a capacity of 15,700 which has recently benefited from a £29 million redevelopment with new seating, hospitality, bars and restaurants.
“The National Indoor Arena is a globally renowned sport and concert venue with a capacity of 14,150 which has attracted the biggest names in sport and music since it opened in 1991. A major refurbishment is underway.”
“The Ticket Factory is a national ticket agency supporting both NEC Group arenas and third party events and venues. The Ticket Factory sold 2.35 million tickets supporting over 1,700 unique events in the year to March 2011.”
An accompanying cabinet paper talks about developing a project to ensure that the NEC Group enters the next stage of Strategic Development with the facilities continuing to provide significant economic benefit for Birmingham and the West Midlands.
