Council workers' £½m pay-off
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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