Hambleton District Council which is set to be abolished has voted to hand four of its directors a total of £770,000 in exit payments because they do not wish to work for the incoming unitary authority.
In a highly charged meeting of Hambleton District Council in which numerous members of the ruling Conservative group questioned or attacked the move, councillors was told there was no prospect the senior male members of staff would suffer financially as a result of transferring between local authorities.
However, the meeting was told the directors were fearful about the ringfenced roles they would be given at North Yorkshire Council, despite no decisions having been made about their jobs.
Councillors were told the four directors, who stand to receive an average of £190,000 if they decide not to accept jobs at North Yorkshire Council, had served many years at Hambleton and were dedicated individuals.
The authority’s leader, Councillor Mark Robson said claims by infuriated union bosses that likened the move to a “boy’s club” were absolutely unfounded, and that the payment had also been offered to a woman, who had declined it.
He said: “The main thing is, for me, it’s lawful. We’ve had King’s Counsel, HR [human resources] and solicitors advise us on that. I believe it is the right thing to do for those officers at this level.”
The authority’s deputy leader, Councillor Peter Wilkinson added: “The reason I am supporting this is because I think this is the right thing to do for hardworking, loyal members of this council.”
However, several councillors questioned whether the payment represented good value for money for taxpayers.
The meeting was repeatedly told the authority did not need to do anything as the four directors had been assured they would be offered “suitable roles” at no financial loss to themselves when they transferred to North Yorkshire Council on April 1, as well as the right to appeal the decision.
Councillors were told unions and the county council’s deputy chief executive had cast doubts over whether Hambleton’s move was beyond its powers and that all its members of staff should be treated equally and fairly.
Questioning the move, Great Ayton councillor Ron Kirk said: “Of course we have the reserves, in many respects we are a very lucky local authority having those reserves which have been built up over very many years… the reserves have been accumulated from the residents of Hambleton District Council and we have a fiduciary responsibility towards them.”
After the meeting was told claims the payment could be “the tip of the iceberg” and the council’s 400 full-time equivalent staff may be offered a similar package, Coun Robson said he would “welcome that opportunity, but at this stage there is no route” to offer the exit payments to less senior members of staff.
Councillor Gareth Dadd said Coun Robson’s claim that he wanted to give payments to all of the council’s staff was “pie in the sky” as it would cost tens of millions of pounds.
He said there had been cases where exit payments to officers had been ruled beyond the council’s powers, with officers being forced to return the money to the public purse.
Coun Dadd said the legacy and reputation of the authority would be “tarnished beyond redemption” by the payments and “remembered by each and every resident that takes notice of local government in the area”.
He said: “I am ashamed because it can’t be justified. It has been said to me this could be just a bung for the boys and to hell with everybody else.”
Councillors voted 15 to 10 in favour of handing the payments to the directors.
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