Council workers' £½m pay-off

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Thursday, July 24, 2008
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This is SouthDevon

TORBAY Council's 're-shaping' is costing £500,000 in

redundancy and other payments for shedding four top

officers.

The total cost of the golden handshake for this round of the

restructuring is £521,806.

Between them the four — environment director Mike Yeo,

strategic director Paul Lucas, legal chief Bill Norman and head

of children's services Margaret Dennison — have received

£193,826 in redundancy payments.

Another £300,000-plus has had to be paid to their pensions

provider to compensate for lost payments as they are taking

their pensions early.

Today, leading cabinet member Chris Lewis said: “Half a

million pounds is a lot of money. But if you were in a business

and want to move forward you have got to make sure you have the

right people in the top jobs.

“The officers who have left were very good, but we probably

need people with different qualities for the commissioners

roles.

“We want to get the council working properly and providing

better services with regeneration and helping the most in

need.

“And, in that context, half a million pounds is worth it to

get the job right.”

Six senior Torbay officers were competing for four jobs as

deputy chief executive, and commissioners for people,

environment, and operational support.

Only Caroline Taylor was appointed as deputy chief

executive. Mr Lucas did not apply for a new post and has

retired early.

Between 20002 and 2006 the council paid out more than

£700,000 after five of its officers left following the previous

restructuring which came after a damning Audit Commission

report.

The council insisted on an official Freedom of Information

request from the Herald Express before it would release the

latest redundancy payments.

Mrs Dennison received £59,829, Mr Lucas £53,730, Mr Norman

£31,823 and Mr Yeo £48,442.

On top of that the council has paid its pension

administrator, Devon County Council, a sum to make up for the

pension payments the officers are no longer making and the

extra payments made to the officers as they are taking their

pensions early. The council says there were no additions to

their pensions.

For Mrs Dennison this is £68,639, for Mr Lucas £102,783

(including £967 for his role as the council's returning office

at elections), Mr Yeo £156,557.

Mr Norman has gone to work for another council on

Merseyside.

The council says the figures are in line with the amount it

budgeted for as part of the re-shaping which is projected to

save the council money.

A spokesman said the money was included in the overall

budget for the first phase of its restructuring and were

approved by Cabinet and council earlier this year.

“The payments were in line with the Local Government Pension

Scheme and national redundancy packages. There were no bonuses

or additions to pension.

“These payments need to be set in the context of our overall

ambition for Phase 1 of savings in the order of 10 to 15 per

cent of our net budget over a two-to-three-year period.”

The town hall was left with an annual bill of more than

£26,000 in pension costs following the departure in 2006 of the

previous five council officers — chief executive Tony Hodgkiss,

education director Frank Weeple, tourism chief Tim Whitehead,

social services director Jain Wood and former chief executive

Richard Painter.

These additional pension payments are no longer allowed.

It cost £196,300 when Mr Hodgkiss left in 2002, plus annual

costs of £9,500 to enhance his pension.

The early departure of Mr Painter before his contract

expired in 2005 cost the council just under £10,000 in bonus

and legal fees. It cost £178,454 plus pension costs of £5,350

when Frank Weeple left in 2003.

When Tim Whitehead left it cost £151,194 and annual pension

costs of £5,626 in early 2004. The redundancy of Jain Wood cost

the council £172,260 with annual pension costs of £6,034.

The four commissioners are being appointed on salaries

ranging from £90,000 to £120,000 each.

Torbay MP Adrian Sanders said he personally believed the

departure of Mr Lucas was a 'big loss' for the council.

“I think mayor Nick Bye will come to realise the biggest

mistake he has made, and is ever likely to make, is letting

Paul Lucas go.

“I think he is a major loss to the authority. Personally I

felt he was an officer who knew what he was doing, could move

with the times and gave full value.

“As to the cost I am just speechless. I just find the whole

way the thing is going sad, tragic and very depressing.”

But Totnes MP Anthony Steen said he believed it was a price

which had to be paid if the target is lower council tax.

It was the attractive levels of salary and redundancy

payments set by Government for public services which was the

problem, he said.

“In the last 10 years the council has not taken the bull by

the horns and, as a result, the number of staff has

proliferated.

“They all do a good job, but it means we, the council

taxpayer, have to pay for them to be there.

“I am full of admiration for Nick Bye who is doing a very

difficult job and taking some unpopular decisions in saying

that we as a small unitary authority cannot afford this number

of people at this cost. I am not saying that because he is

Tory.

“We would like to have 10,000 staff in Torbay providing all

the services people say they want, but we don't want to pay for

it.

“Nick Bye has got hold of the issue by the short and curlies

and time will tell whether he has got the balance right between

staff and services.”

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12 Comments

  • Profile image for Jimrob

    by Jimrob

    Sunday, April 29 2012, 12:04AM

    “Hello Torbay,

    A quick first posting from myself to you all from Merseyside, by way of updating you on the career of your ex-Head of Legal, Bill Norman.

    You will be very pleased that you managed to get rid of him so cheeply when you read what he has been up to since he left your area.

    He and several other Senior Officers of Wirral Borough Council are up to their necks in serious allegations of misconduct up here. Yup, the Authority he joined when he left you was Wirral, not Merseyside.

    For those interested in keeping up with his career you can simply Google "Wirral Globe" it is our local newspaper and the only one on Merseyside with the b***s to let the public know exactly what is going on with both our elected officials and the Senior Officers of the Council.

    Anyone who is interested in the inner workings of such, will, I'm sure, enjoy the story's contained within.
    Kind regards to you all from the Wirral.”

  • Profile image for This is SouthDevon

    by hilary, paignton

    Sunday, August 03 2008, 5:37PM

    “The problem is that the restructuring keeps on happening ( at 18 month to 2 year intervals ) and the need for big payoffs continues each time there is a shift in the longer term goals/strategies.. Torbay is too small an authority to carry on doing this, it will bankrupt itself. It should never have become a small stand alone authority in the first place. We should be part of a much bigger organisation ( say the whole of the South Western Region) and share general overhead costs rather than trying to have a full effective top management team ourselves.”

  • Profile image for This is SouthDevon

    by Paul ex Torquay, australia

    Friday, July 25 2008, 12:50AM

    “If councilors were payed on "RESULTS" they would all be on the dole”

  • Profile image for This is SouthDevon

    by maverick, torbay

    Thursday, July 24 2008, 7:15PM

    “Get your P45 now if I was you to The New Comissoners If I was you.The tides coming in fast as the councils running on empty tanks of unleaded now as the 4 star has now all gone.”

  • Profile image for This is SouthDevon

    by jerry, TQ

    Thursday, July 24 2008, 6:18PM

    “Long live the gravy train.”

  • Profile image for This is SouthDevon

    by D T Lakeman, Paignton

    Thursday, July 24 2008, 3:07PM

    “Still look on the bright side, the cost of getting rid of the Mayor will simply be a "cross" in the right box come the next election.”

  • Profile image for This is SouthDevon

    by Russell, Paignton

    Thursday, July 24 2008, 1:52PM

    “I am amazed that paying Half a million Pounds and employing replacements, albeit under different titles, for 200,000 pounds per year will save money for council tax players whoever worked that out can do my tax returns any day!”

  • Profile image for This is SouthDevon

    by BW, Torquay

    Thursday, July 24 2008, 11:13AM

    “No doubt at all that our new Commissioning Officers will be worth their weight in gold - when they leave and collect their Golden Goodbyes.”

  • Profile image for This is SouthDevon

    by unwaged, Torbay

    Thursday, July 24 2008, 10:54AM

    “Well pearshaped reshaped displaced they have got 2 New Comissioners on £200,000 now aswell.Mr Bye seems a content Mayor then?”

  • Profile image for This is SouthDevon

    by Steve Brown, Paignton

    Thursday, July 24 2008, 10:10AM

    “And the mayor will have us believe that a building estate at Oldway is necessary due to lack of finance!”

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