Vbase Client & Media Statement —Vbase Confirms Downsizing

Vbase today confirmed the change proposal for downsizing the company as a result of impacts from the 22 February earthquake and transfer of governance and management control to Christchurch City Council. Vbase owns and manages Christchurch Convention Centre, Christchurch Town Hall for Performing Arts, AMI Stadium and CBS Canterbury Arena. CBS Canterbury Arena reopened in March however the other three venues remain closed. While AMI Stadium is expected to reopen in stages throughout 2012 there is continuing uncertainty about the future of Christchurch Town Hall for Performing Arts and Christchurch Convention Centre, which will remain closed until at least end of 2013. Assessments are continuing and reassessment is required as a result of the large aftershocks on Monday 13 June.

Prior to the earthquake, Vbase hosted more than 1800 events annually across the four venues. At that time the Vbase team comprised 218 full time equivalent staff, made up of 99 full time positions, 96 part time and 666 casuals. Following confirmation of the change proposal, 45 full time positions have become redundant effective 30 June 2011, while part time/casual hours have reduced in line with the dramatic reduction in event numbers. The restructured organisation now comprises 67 full time equivalent staff, of which 54 are full time positions.

With Council assuming governance and management control the current Board, Chief Executive and five senior management positions have also become redundant. A new position General Manager, Vbase, has been created and recruitment will commence shortly. The role will oversee venue business development and event management and report to Council General Manager, Community Services Michael Aitken. Facilities Management, Human Resources, Finance and Administration, IT and Rebuild Capital Projects will be functionally integrated into Council and these services provided to Vbase under a management contract.
The Vbase Board, Chief Executive and senior management are committed to supporting the Vbase team through the restructure and expediting a smooth transition to direct Council control of the business. This is being lead by Vbase Chief Executive Bryan Pearson and is expected to take 2-3 months.

Bryan Pearson says the Vbase team has provided valuable input into the change proposal. "Many of our team have already suffered loss of some kind in their private lives due to the quakes, but despite these stresses have shown remarkable dignity and compassion at this difficult time. I am enormously proud of them and what we have achieved together".

The downsizing of Vbase delivers fixed overhead cost savings of $3.8 million per annum and has a one-off cost of $1.4 million.