A ROW has broken out after a major trade union confirmed it would not be returning to Plymouth for its annual conference.

The GMB trade union held its annual conference at the Pavilions in June this year and was keen to return to Plymouth for another congress in 2010.

The union's five-day conference – regarded as one of the 'top 10' conferences in the UK – attracted up to 600 delegates each day to Plymouth, plus hundreds of other visitors through the week. City figures believe the event generated between £500,000–£2 million for the local economy.

The city itself was a real hit with conference goers, who enjoyed its friendly welcome and value-for-money restaurants, hotels, pubs and shops, according to the GMB.

The positive feedback meant Plymouth was shortlisted with Southport, on the north-west coast, for the 2010 event, paving the way for another windfall for the city's economy.

However, in a meeting on Tuesday the GMB executive voted for Southport. It said it chose Southport because Plymouth City Council had scrapped its 'subvention' – a fund used to reduce non-commercial conference organisers' costs by subsidising the cost of hiring a large venue.

The Herald understands the subvention fund was around £60,000 and was cancelled earlier this year, long after the 2008 GMB conference was secured.

The loss of 'GMB 2010' has prompted a furious reaction from politicans and business leaders.

Labour leader Tudor Evans said the council's decision to stop the subvention fund was "a disgrace". He said it was a sound investment and brought in 'over £2 million' to the local economy.

He said: "It's a real blow for our local businesses, particularly the smaller ones.

"The market for these conferences is very competitive, with councils across the country offering their venues for free."

Richard Smith of Plymouth Gin and Plymouth Chamber of Commerce said the private sector "put its hands into its pockets" to ensure conferences were brought to the city this year, but would be unable to do so in the future.

He said: "There's a clear economic case for bringing conferences to the city. A small investment that was necessary to bring the GMB back to Plymouth would have been repaid many times over.

"Towns around the country are fighting for conference business. Southport and Brighton must be rubbing their hands with glee. They just won't believe that Plymouth has been so short sighted."

A GMB spokesman said: "The venue was just the right size and it's a beautiful city. We had delegates come from all over the UK. Everyone really loved it."

Another GMB source added: "Plymouth has shot itself in the foot as a conference venue. It is underselling itself."

No-one from the city council was available for comment last night.