Northern Echo: Councillors' parachute pay demand 'may go to Europe'

By Stuart Arnold

THE man spearheading a bid to win compensation on behalf of hundreds of councillors whose terms are being cut short by local Government re-organisation last night said the case could go to Europe.

Gateshead councillor Peter Mole, the general secretary of the National Association of Councillors, has written to John Healey, the Minister of State for Local Government, setting out his demands.

Coun Mole and his supporters, including the leader of Durham County Council Albert Nugent, believe that parachute payments should be made to councillors "mitigating the financial losses" they will face as a result of re-organisation.

Campaign group the Taxpayers' Alliance has criticised the move, describing it as a "shameful attempt to squeeze more money out of hard pressed taxpayers".

Last night Coun Mole said: "It the letter is with the minister now and I am hoping he will look favourably on it in some respects."

Asked what course of action could be taken should the Government - as expected - reject councillors' pleas - he said: "There needs to be some natural justice.

"We could look at the European Convention on Human Rights. There are other avenues open to us."

Re-organisation will mean that in County Durham, a single council will replace the two-tier system of seven district councils and a county council by April next year. Similar reforms will take place in Northumberland.

In Durham, the number of councillors will be cut from 375 to 126 with many members who have yet to serve their four-year term facing the exit door.

The Department for Communities and Local Government (DCLG) believes unitary authorities in Durham and Northumberland will save £20m and £15m respectively every year, But opponents fear it will in fact lead to a number of added costs for tax payers.

One concern is over the level of salary to be paid to new and serving senior managers in the new authority.

The new chief executive of the new authority in County Durham will receive £200,000 a year - at least £10,000 more than former Durham County Council chief executive Mark Lloyd.

A county council spokesman said the move to unitary status would still achieve very significant salary savings at chief officer grade since there would only be one council chief executive in the county instead of the current eight.