AN auditor has criticised a council for its policy of issuing free parking permits and bus passes to councillors.

However, Redcar and Cleveland Borough Council has hit back by saying that passes are only issued if it works out cheaper to do so.

The auditor also said councillors will have to sign for their free computers and printers in future.

The authority has already agreed that members of the executive committee should be given a council mobile phone with the rental and call charges paid by the council.

The council's executive committee will discuss recommendations for members' allowances for the coming year tomorrow.

If the proposals are accepted, the annual basic allowance for councillors would increase from £5,820 to £6,030.

The annual allowance for the leader, currently David Walsh, would rise from £6,580 to £6,820.

Apart from free mobile phones for members of the executive committee, the telephone allowance for all councillors would rise from £155 a year to £160.

If approved, the total cost of the allowances next year would be more than £430,000.

An internal auditor examined the district auditor's rules before making investigations into members' allowances.

The auditor said rules about signing for computers, which must only be used for council business, should be tightened, and the authority's policy of offering occasional parking permits and bus passes should be examined.

Another recommendation, to be discussed at a future meeting, is to provide a childcare allowance. It is thought the allowance, which a quarter of councils provide, would encourage more women and younger people to become councillors.

A total of £7,620 has been earmarked to pay for the childcare scheme.

A council spokesman said bus passes and parking permits help keep costs down.

He said: "Bear in mind that we have council offices at Eston, Redcar and Guisborough.

"When councillors travel between them a lot and claim expenses, there comes a point when it is actually cheaper to issue a permit."

David Walsh, the leader of the council, said the issue of parking permits and bus passes would be looked at.