Council chiefs get 20% bonus

Jan 24 2008 by Dave Black, The Journal

THREE senior officers at Northumberland County Council have been given a bumper 20% pay rise in an effort to ensure they don’t leave to take up new jobs during the switch to unitary local government.

Chief executive Mark Henderson, deputy chief executive Jill Dixon and director of finance Steven Mason have been handed the “golden handcuffs” payments to retain their services in the transition to the a new, single super-council next year.

The bonuses, backdated to October, have enhanced the performance-related salaries which previously saw Mr Henderson earn £141,000 to £152,000 a year, Ms Dixon £105,498 to £116,000 and Mr Mason £94,947 to £105,498.

That means, even if they have the lowest wage in their pay bands, Mr Henderson’s earnings will go up £28,200, Ms Dixon’s £21,099 and Mr Mason’s £18,989 – more than many people’s annual salary.

It comes as the Prime Minister demands tight controls on public sector pay.

The rises – sanctioned under delegated powers by council leader Peter Hillman and not ratified by the full council – will be paid until equivalent posts are filled on the new authority. So far, they have cost council taxpayers an extra £24,000 – at £6,200 a month – and the final bill will depend on how quickly the appointments are made.

Yesterday the county council justified the inflation-busting rises by saying it was vital to secure top executives in post during the complex and demanding introduction of a new council. But MPs reacted with anger and concern at the scale of the increases when the Government is urging restraint.

Blyth Valley Labour MP Ronnie Campbell said: “It beggars belief that senior council officials are getting a 20% rise when the Prime Minister is saying we have to keep inflation and wages under control and we are coming down hard on the police and MPs.

“It is high time Northumberland county councillors started to take some powers back from the leadership. I would not hand out these sorts of increases and would let these officers get on their bikes rather than pay to retain them.”

Berwick Liberal Democrat Alan Beith said: “I see absolutely no justification for these retention payments, especially at a time when the council is increasing charges for vulnerable and elderly people and the public sector in general is being subjected to tight limits.” Hexham Tory Peter Atkinson said: “I am very uneasy about this. I can understand why the county council doesn’t want to be leaderless in its final year, but I question how necessary these payments are. These senior officers have the opportunity to get jobs with the new authority and if they don’t, will be in line for generous severance packages.”

The council says others in the same transition have lost top staff, and the salaries have been approved by the auditor. The chief executive post at the new council will be subject to open recruitment in May or June and the others will be filled later.

Coun Hillman said it was vital to ensure continuity in leadership.

“I am pleased that we have been able to do this to secure posts which are essential to making the reorganisation happen in the best possible way.

“Losing people in critical posts can not only damage or delay the transition process, but is also very expensive in terms of costs of recruitment to replace them, which run into tens of thousands of pounds.”

• THE bumper pay hikes were supported by the Local Government Association and the North-East Chamber of Commerce.

A spokesman for the LGA said: "Councils will be looking for a degree of stability if they are going through restructuring and some might wish to use incentives to keep senior staff in place. It is something we have certainly heard about in other parts of the country."

Chamber of Commerce chief executive James Ramsbotham said: "This is a sensible move for any organisation to make when going through such a major change. It is good business sense to ensure that staff critical to implementing change are encouraged to stay throughout the transition."

• DURHAM County Council lost their chief executive in controversial circumstances earlier this month.

Mark Lloyd took over as the new boss at Cambridgeshire County Council two months after it emerged that the leader of Cambridgeshire authority, Coun Shona Johnstone, had resigned after making an "inappropriate" telephone call to Mr Lloyd.

Mr Lloyd, who joined Durham County Council in 2000 as director of economic development and planning, before becoming its chief executive in 2005, is due to start in his new position in April.