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Record pay for council officials revealed

PAY row flared last night after it was revealed that a record number of North-East council bosses are earning more than £100,000 a year.

At a time when pensioners and families are facing inflation-busting council tax rises, it has been revealed that 37 council officers were paid £4.3m between them, an average of £116,000 each.

Many were also given an aboveinflation pay rise.

The salaries were condemned by the TaxPayers' Alliance, which called for a curb on pay.

But the Local Government Association said officials were responsible for budgets running into tens of millions of pounds and attractive salaries were the only way of attracting the best candidates, The three top earners in the region were chief executives Ged Fitzgerald, of Sunderland City Council, John Marsden, of North Yorkshire County Council, and Ada Burns, of Darlington Borough Council. In 2006-7, they earned £174,156, £163,545 and £152,177 respectively.

Later this year, Durham County Council will become the first authority in the region to pass £200,000-a-year when it appoints its new chief executive.

The council's leader, Albert Nugent, believes the size of the salary is commensurate with the scale of the task.

Redcar and Cleveland Borough Council had the largest number of high wage earners, with seven officers earning more than £100,000, during 2006-7.

Councillor Chris Abbott, leader of the Liberal Democrat group, said: "To provide quality services you need to attract the best staff to manage the council.

"Redcar and Cleveland has gone from being a failing council to one of excellent' status and that is the result of the quality of the management teams we have in place."

Some of the biggest pay rises were at North Yorkshire County Council, where Mr Marsden's pay rose nearly 25 per cent, and two other officers had pay rises of more than ten per cent.

Councillor Bill Hoult, leader of the opposition Liberal Democrat group in North Yorkshire, said: "We should have known about these pay rises as elected members so we could have had some input on them."

Last night, a spokeswoman for the county council said the pay rises were because of an incremental pay-scale in place at the authority.

She said: "We are proud of the quality and ability of our senior managers, who do an excellent job individually, managing large and complex operations, and deserve the salaries they receive, which are comparable to other important public sector jobs."

Councillor Charles Johnson, deputy leader of the Conservative group in Darlington, where the borough council has three earners above £100,000, said: "Pay rises which exceed inflation give out the wrong message, there is no doubt about that, but I believe the level of pay in Darlington is in line with the rest of the region."

The findings have been criticised by the TaxPayers' Alliance, which compiled the data under the Freedom of Information Act.

Chief executive Matthew Elliott said: "Too often, council executives are rewarded handsomely, even when they fail.

"Families and pensioners are struggling with the demands of yet another council tax rise, and councils owe it to them to cut back on executive pay hikes."

The TaxPayers' Alliance received no response from Easington district and York city councils.

Gateshead Council and Hambleton District Council declined to answer, while the Richmondshire and Wear Valley councils had no staff on more than £100,000.

Nationally, 818 bosses are earning more than £100,000.

Fourteen earn more than the Prime Minister's £188,000 salary, and six earn more than £200,000.

John Ransford, deputy chief executive of the Local Government Association, which represents more than 400 councils in England and Wales, said: "These figures represent 0.036 per cent of the total workforce in local government.

Councils are responsible for ensuring that more than £100bn of taxpayers' money is spent wisely.

"The people who earn these salaries are responsible for multimillion pound budgets in highly complex organisations, and to attract the best and brightest people to deliver value for money, you have to pay a suitable wage."

7:49am Friday 28th March 2008

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Posted by: Rachel, Darlington on 7:56am Fri 28 Mar 08
And yet, despite my husband working full time and myself working part time (on shifts which deprive me of time with my children), we can barely make ends meet, due to rises in petrol, council tax and utilities. It's nothing to do with attracting the 'best' staff other firms don't pay these wages, and I would be dubious about anyone taking this job to make the best decisions as they are obviously motivated by money.
Posted by: jen, co.durham on 8:13am Fri 28 Mar 08
If councillors can be paid this much just to attract people to the job, its an insult to the public people, who struggle everyday to make ends meet, because all of our money is being taken from us for tax, etc, yet why isnt our compulsory wage going up to compensate for this. Its seems the councils are taking the pee, and while they are swimming in OUR money, they are putting US into further hardship. Its like the other day in the northern echo, £170+ thousand pound getting spent on home computers for councillors, the full set up!, just so these people can work from home instead of going into the office is beyond me, give them a computer so they can sit on their backsides, lie in on mornings if they cant be bothered to get up as they know they dont need to set out for work, perfect if they are parents wanting to stay with their kids and work, but yet public are being expected to leave their kids and get out to work, if they want to earn a smither of what councillors do, and yet they work harder.
pathetic!
Posted by: erm, erm on 8:39am Fri 28 Mar 08
What exactly does a Chief Executive do anyway? They are the figure heads and the low paid staff do all the work, feel all the stress and take all the grief.
Posted by: Mr M, North Tynesdie on 9:08am Fri 28 Mar 08
It is a lot of money but if you do want the best people you have to pay for them. The Chief Exec is not the figurehead of a council, that would be the chairperson or leader. The CE is where the buck stops in terms of staff and it is a highly skilled and responsible job. Just to respond to the comment on computers in Councillors homes. I think this is essential. The idea is that Councillors can spend more time in their communiites, representing local people, rather than sitting around at County Hall.
Posted by: Brian, Darlington on 9:45am Fri 28 Mar 08
I think its a disgrace that senior officers in Darlington are on more than £100,000 when they deprive pensioners of free early morning bus travel and have cut mileage allowance for staff who use thei r own cars. Double standards indeed!!
Posted by: Brian, Darlington on 9:45am Fri 28 Mar 08
I think its a disgrace that senior officers in Darlington are on more than £100,000 when they deprive pensioners of free early morning bus travel and have cut mileage allowance for staff who use thei r own cars. Double standards indeed!!
Posted by: DAVID, newton aycliffe on 10:47am Fri 28 Mar 08
It is really quiet shocking to see the salaries offered to these Chief Execs when people are struggling to make ends meet and suffer below inflation pay rises.Can we honestly say that Councils in the North East are getting value when you still see places like Easington and other areas of Durham which still feel you are returning back to the twenties compared to other areas of Britain.At least there may be some savings when they disappear under the new Unitary Authority for Durham unless they become absorbed and we still have to suffer from their protected salaries.
Posted by: johnsone, Stockton on 10:56am Fri 28 Mar 08
Just to correct two points. Chief Executives are not elected councillors they are more like senior Civil Servants or managing directors of big businesses, apart from the free shares. Why would anyone think giving councillors a computer in order to communicate with staff and constituents, write letters, emails etc would give them an easy life. I was a councillor for 10 years and did a full time job as well, it was useful to be able to do casework at home even though it did take up most evenings and weekends. Any councillor who has an easy time isn't doing it properly.
Posted by: Joan McTigue on 11:01am Fri 28 Mar 08
Jen from Durham seems to think the article refers to councillors pay! I agree that Chief Execs are mostly a figurehead and the fact that a council is given a 4* rating is because of what? Does Joe Public actually know how this comes about? Who is questioned about the level of services and who does the questioning? I don't believe it's necessary to pay any member of staff in a council £100,000 in order to get a good job done. The last time 4 Exec Directors in Middlesbrough were given a pay rise to bring them over £100,00 we were told bny Mr Mallon these figures are needed to get the best and to keep them. Two of these men left shortly afterwards but they will feel the benefit of their substantial rises in their pensions !
Posted by: Peter, Darlington on 11:09am Fri 28 Mar 08
I've worked for Darlington Borough Council for nearly 20 years, Ada Burns was appointed 2 or 3 years ago (not sure exactly when) she has never been in our office and introduced herself to staff, I've never met her or seen her in and around the town hall, i now find out that at a time when mileage allowances are being cut and diesel is 112p per litre she is on over £150'000 per year, its a disgrace, what does she do because she certainly has now input whatsoever in our department.
Posted by: James Ferrowton, Sedgefield on 1:00pm Fri 28 Mar 08
At least the upcomming Unitary Council for County Durham will get rid of a few of these fat-cat chief executives and their over inflated salaries (+ perks). And not before time!!
Posted by: Ian Bennett, Darlington on 1:42pm Fri 28 Mar 08
I was about to ask my ward councillor where the 4.9% increase in my council tax was going; now I know. It certainly isn't being used to improve services.
Posted by: Peter, Darlington on 2:22pm Fri 28 Mar 08
In Darlington you have Ada Burns on £150K with Directors below her on £100k+ then the people who do the work having to apply for benefits.Sounds about right.
Posted by: michelle on 4:41pm Fri 28 Mar 08
do any council members read these comments. why do we have to pay them we pay enough dont you think
Posted by: Sinbad, Shildon on 10:41pm Fri 28 Mar 08
I think these guys are worth every penny. They work long hours, they don't get the same level of benefits of the people at the top of big private sector companies and they get all the flak.
Posted by: Martin, Darlington on 11:18pm Fri 28 Mar 08
Rachel said "...other firms don't pay these wages..."

Unfortunately they do, and therein lies the root of the problem. Only today the media are reporting that the Chief Execs of Centrica and ITV both earned around £1.9 million last year. Compared to that the Chief Execs of local authorities are poorly paid! I'm not saying it's right (I earn <19K, why would I?) but the simple fact is the genie escaped from the bottle on this issue years ago and I see no realistic way of putting it back.

Peter - I've worked for DBC for 3 years in a pretty humble post (see above!!) I've met Ada several times at the Director's Talk Time events she holds periodically which are open to any staff to attend. If you go along to one of those she'd be happy to meet you and discuss any issues you wish to raise.
Posted by: Peter, Darlington on 1:19am Sat 29 Mar 08
sinbad from shildon what planet are you from jesus christ get real,martin from darlington i've been to the directors talk time really useful they are if you cant sleep, the point i am making is that the chief executive of the council has not even bothered to come to our office and see what service we provide or introduce herself to us, i know she is a busy lady but come on the best thing about any organisation large or small is its staff and she should make the time and effot to introduce herself to all staff irrespective of these directors talk time
Posted by: Pre, Redcar on 9:56am Sat 29 Mar 08
"Redcar and Cleveland Borough Council had the largest number of high wage earners, with seven officers earning more than £100,000, during 2006-7."

How can Cllr Chris Abbott justify this sort of practice. There are young people through out Redcar and Cleveland - WHO STRUGGLE TO PAY THEIR COUNCIL TAX! And in 2003-2007 it was being squandered by the Lib Dems on paying footballer wages to individuals who take the money from our area and don't address the problems. Further still - why is Cllr Chris Abbott posing as a leader of R&C council when we voted him out of office in 2007!
Posted by: sinbad, Shildon on 10:00am Sat 29 Mar 08
All I;m saying is that these people work hideously long hours, they are always required to attend meetings early in the morning and attend functions in evenings and weekends. They have to do a lot of work behind the scenes that people just don't get to see.

They have high pressure positions and they carry the can for the performance of the authority.

When you compare their salaries with the astonomical pay in boardrooms of the corporate world, these people are not really overpaid.
Posted by: kd, consett on 10:58am Sat 29 Mar 08
There is no comparison between CE's of councils and commercial business leaders. When most councils have given their functions to private contractors, what is left to do? A large percentage of our council tax goes towards pensions. In the case of Derwentside Council and the sale of the housing stock for £2.3 million (valued at £20 million on the same day it was sold) the real reason was that there was a pensions black hole of £5.7 million. Derwentside homes paid this sum so it kept the council in the black.
May 1st is an important day for County Durham and should be the start of the decline in numbers of council employees and managers. Make sure you vote for a quality candidate that has no political association. Make the change, kick them out
Posted by: James Ferrowton, Sedgefield on 12:54pm Wed 2 Apr 08
kd wrote:
There is no comparison between CE\'s of councils and commercial business leaders. When most councils have given their functions to private contractors, what is left to do? A large percentage of our council tax goes towards pensions. In the case of Derwentside Council and the sale of the housing stock for £2.3 million (valued at £20 million on the same day it was sold) the real reason was that there was a pensions black hole of £5.7 million. Derwentside homes paid this sum so it kept the council in the black. May 1st is an important day for County Durham and should be the start of the decline in numbers of council employees and managers. Make sure you vote for a quality candidate that has no political association. Make the change, kick them out
You are absolutely right, a large proportion of our council tax does go towards the pension funds of local councils. That is why (IMO) they should be employing fewer staff and making better use of technology.
An awful lot of money is squandered by these wasteful local councils and their 'safe seat' councillors.
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