THE row between Cleveland Police Authority and the force's new chief constable over a £7.3m "black hole" in its budget deepened last night.

Key members of the authority, including outgoing chairman Ken Walker, have been fiercely critical of the way the deficit has been handled.

The authority said it was unhappy with the suspension of the force's director of finance, Stephen Preval.

He was removed from his post by Deputy Chief Constable Ron Hogg pending the investigation when the £7.3m black hole was discovered earlier this year.

The handling of the disciplinary action against Mr Preval was questioned at an authority meeting last week.

It was convened to deliberate an Audit Commission's report into Cleveland Police's financial problems, but went into closed session to discuss the issues surrounding the suspension of Mr Preval.

The newly released minutes of the discussion make it clear members feel that Mr Preval's case is not being handled properly.

The minutes said: "Because the authority has been made aware of the possibility that the employment/disciplinary position of Mr Preval is not being dealt with correctly, (the Police Authority) should take action in that regard, and especially because Mr Preval is contractually the authority's employee.

"The authority should require a report from the Chief Constable on that matter, and ensure that it is being dealt with properly and independently."

Cleveland's chief constable, Sean Price, is handling the investigation which is surrounding Mr Preval's ongoing suspension.

He said yesterday: "What has been requested from me by the Police Authority was the result of their deliberations. I am happy to assist in any way I can in relation to this matter."

The Audit Commission's report revealed how Mr Preval warned as long ago as 1999 that 2004/05 would be a difficult year for funding, saying there would be inadequate resources to stand still.

It was only when a new chief executive was appointed in May last year, along with the appointment of new chief constable Mr Price and a new deputy chief constable, that the financial problems were recognised.

A spokesman for the Police Authority declined to comment until the report is considered by members at a meeting on Thursday at the force headquarters.