Westminster City Council: Finances (Hansard, 20 February 1989)

§ Lord Hesketh
My Lords, the authority's auditor has the responsibility for inquiring into any complaints about a local authority's financial affairs. I see no need for the Government to hold a public inquiry.

§ Lord Dean of Beswick
My Lords, I declare an interest in that I am a ratepayer in the City of Westminster. Is the Minister aware that I find the council's settlement to its retiring chief executive, Mr. 396 Brooke, of £1 million to be absolutely unbelievable? Is he also aware that when due to government action the metropolitan counties were dissolved, the maximum payment for redundancy or retirement settlements was £200,000? Is he further aware that the population of most of those metropolitan councils was far in excess of that of Westminster City Council?
What new features have been introduced into the payments of retirement or redundancy settlements to chief officers to enable the abnormally high payment of £1 million to be made? Was it in order to cover up the deficiencies of the political leader of the city council, who obviously made an appalling blunder on this occasion?

§ Lord Hesketh
My Lords, I find it slightly surprising that the noble Lord should question the payment. Mr. Brooke had served in local government for 32 years and he has been paid only that to which he is legally and contractually entitled.

§ Lord Jay
My Lords, in order to discourage extremism in local government, and because the eccentric behaviour of the leader of Westminster City Council has led not merely to the expenditure of £ 1 million but to a reported protest to Buckingham Palace from the Netherlands Royal Family in respect of the cemeteries affair, would it not be in everyone's interest if Westminster City Council now selected a more responsbile leader?

§ Lord Hesketh
My Lords, it is the Government's policy not to interfere with local government.

§ Lord Harris of Greenwich
My Lords, after that extremely good-quality joke, what would the Minister's language have been if a Left-wing Labour authority had behaved in the way in which Lady Porter has behaved in Westminister?

§ Lord Hesketh
My Lords, I draw the noble Lord's attention to my reply to the noble Lord, Lord Dean. It was that we are discussing a gentleman who has served in local government for 32 years and he is being paid only that to which he is legally and contractually entitled.

Lord Bruce of Donington
My Lords, in the course of the noble Lord's Answer he referred to the responsibility of the district auditors in connection with the financial affairs of the council. Is he aware that many noble Lords believe it to be extraordinary that the district auditor in this case—a private firm which was charged with the investigation of the scandalous transaction in the disposal of cemeteries for 15p—was at the same time offered a consultancy contract to the tune of £78,000 without competition? Does he not consider that there was a division of interest which should receive the Government's attention? Is he also aware that many noble Lords may believe that we should have regard to the Government's responsible impartiality when it comes to a Tory council behaving in that scandalous way in relation to cemeteries?

§ Lord Hesketh
My Lords, there is already a considerable amount of regard: three investigations 397 are being carried out into the sale. The district auditor's report of 2nd November showed serious defects in the council's handling of the sale for which members and officers were responsible but no evidence of fraud or corruption. He is also to hear the ratepayers' objections to accounts at a public hearing next month. The Commission for Local Administration in England found considerable failings amounting to maladministration. The Metropolitan Police Fraud Squad's investigation continues. In the light of all those investigations, there is no case for intervention by the Government.

§ Baroness Seear
My Lords, the noble Lord has told the House that it is the Government's policy not to interfere with local authorities. Therefore, are we to understand that they will now be free to spend the money obtained from the sale of council houses which they have not been allowed to spend?

§ Lord Hesketh
My Lords, that is rather wide of the Question on the Order Paper.

§ Lord Cledwyn of Penrhos
My Lords, the noble Lord referred to the financial settlement made between the council and the chief executive upon his retirement. Were any conditions attached to it? Is it a fact that the chief executive is now under an obligation not to reveal or publish anything relating to the council's recent affairs?

§ Lord Hesketh
My Lords, I understand that Mr. Brooke will remain an employee of Westminster City Council for some time. It will be up to him to deal with any questions put to him by the auditor about events which occurred during the time he was chief executive.

§ Lord Cledwyn of Penrhos
My Lords, the noble Lord has not answered my question. Was it a condition of the settlement made between the chief executive and the council that he should not publish anything which may be in the public interest in relation to the affairs referred to by the noble Lord?

§ Lord Hesketh
My Lords, I am unaware of any condition.

§ Lord Hatch of Lusby
My Lords, the noble Lord keeps telling us about the number of years for which the chief executive has served. If that is the case and he is so satisfactory, why has he been sacked? As my noble friend on the Front Bench suggested, is that not in order to cover up what Mr. Brooke knows has been going on in the Westminster City Council?

§ Lord Hesketh
My Lords, I am unaware of that. However, I address the noble Lord, Lord Hatch, to my earlier answer; namely, that Mr. Brooke will remain an employee of the Westminster City Council for some time yet.

§ Lord Dean of Beswick
My Lords, is the Minister not aware that I totally reject his Answer to my first Question? Will he bear in mind that I have spent a 398 long time in local government and can find no case where a chief executive has retired or been retired on anything more than one-fifth of what Mr. Brooke is to receive? Can the Minister say what special circumstances apply where the chief executive of the Westminster City Council, which is less than a fifth as large as any of the Metropolitan country councils, can be forcibly retired on £1 million? I again put the question to him. Does he not understand that it quite clearly appears to everybody outside, other than people trying to protect the leader of the Westminster City Council, that it is hush money in its worst sense?

§ Lord Hesketh
My Lords, I am slightly confused as to whether the noble Lord, Lord Dean, is suggesting that Mr. Brooke should be paid less than his legal and contractual entitlement.