Unite orders inquiry into Birmingham hotel and conference centre

Unite's new general secretary has ordered a QC-led inquiry into the development of a member-funded hotel and conference centre in Birmingham.

Newly appointed general secretary Sharon Graham said: "While the audit of the Birmingham hotel and conference centre gave the accounts a clean bill of health, a recent expert valuation has now estimated its value as being considerably lower than the costs incurred in developing the site. This represents a potentially significant loss to Unite and has to be investigated.

"I am therefore commissioning an independent inquiry to be led by a QC and supported by an external law firm in order to review the costs incurred and address the question of how and why this difference has arisen. These questions need to be answered in a timely fashion and in order to ensure transparency the outcome of the inquiry will be made public. I will also be doing everything possible to recover all monies due back to the union."

Graham said the scope of the inquiry would be agreed in January, with an update expected by the end of March.

She added: "This inquiry is of course important but it will not detract from our absolute focus on the jobs, pay and conditions of our members."

Total expenditure on the project is reported to have reached some £98m, despite an initial estimate of £7m. Graham's predecessor Len McCluskey, who presided over the project, tweeted to say the inquiry "is sensible and will answer any questions".