AN INVESTIGATION is to get under way at Bridport Town Council to find out why members were unaware of a £16,000 shortfall in funding for the town co-ordinator's post.

A call for reviews of staffing needs and finance and employment procedures was also unanimously backed at an uncomfortable meeting on Wednesday - a baptism of fire for new town clerk Ron Gregory.

And there were questions too, for town council leader and committee chairman Roger Draper as to when he first knew about the shortfall.

Seconding the call for the town clerk to find out how the misunderstanding came about, Coun David Tett said: "I think we should all know what's being going on here, why and make sure it doesn't occur again in future."

Earlier, he had declared: "When I was mayor, I was not taken into confidence of the town clerk and, to a lesser extent, of the leader. It worries me sick that we're dealing with money - not our own but taxpayers' money."

The proposals came from Coun Charles Wild, who has been concerned about how staff on the government-backed market and coastal town initiative are being paid. The town council pays their wages but reclaims some of the money from bodies such as the South West of England Regional Development Agency (SWERDA).

Coun Tett said the matter centred on the funding of the town co-ordinator's position.

"Originally the town co-ordinator was appointed on a three-year contract, later to be extended to a full time post, in the main due to the fact that Bridport was chosen as one of nine pilot towns for the coastal and market towns initiative," he said.

"At that time time, in 2001, we were assured by the former town clerk that, as a council, our contribution towards this salary would be 20 per cent, with 80 per cent coming for outside sources. This has not been the case. For the year 2001/02, this council, as well as contributing its 20 per cent share of the salary, also made good the deficit, in round figures, of £10,000 - ie a total of £16,000.

"For the current year 2002-03, out of a total cost of £30,400 this council's 20 per cent contribution is expected to be £6,080. To August 31 2002, only £2,216.25 has been received from outside sources and if this remains the case throughout the remainder of the current year, this council will have to find a further £22,103.75.

"However, there has been confirmed further outside funding of £12,648.75, which increases our liability by £9,455. "Added to our accepted 20 per cent contribution of £6,080, this council would have to find in all a total of £15,535. "Again on September 4, the former town clerk categorically stated that of the town co-ordinator's salary, this council's contribution was 20 per cent - ie £6,080.

"At best it was a genuine mistake on his part, at the worst it was misleading. This is a very serious matter, make no mistake."

He wanted to know how the authority would make up the shortfall and, as the coastal and market town initiative was likely to form into a company limited by guarantee and appoint its own manager, how the council could continue to fund the post of a town co-ordinator.

Coun Draper said he first knew about the shortfall when he received a letter from committee vice-chairman David Tett. But Coun Charles Wild said he wrote the letter, which the News can reveal was dated October 2.

And Coun Jean Shaw said there was a letter on the town council's files dated June 26 which was about the shortfall. It was written by the former town clerk to the town co-ordinator, with a copy to the leader.

Coun Shaw said: "It seems very strange that the anxiety about a shortfall was indicated in June. There was a commitment that a certain salary would be met by the town council if SWERDA and other agencies did not come up with it."

Coun Draper said: "What we have is the estimates and estimates of where that funding would be found. As we go through the year, funding may or may be not be found. Yes, we do have questions with SWERDA but we have a number of agencies here."

Coun Wild said he raised the matter because he wanted to know what implications it might have for the council's budget. He also said he was "far from satisfied" that councillors simply misunderstood.

"I would ask for a proper investigation as to how this misunderstanding took place. If we can't get to the bottom of it, it may become a matter for the district auditor or monitoring officer."

He added that the council was fully committed to supporting the market and coastal town initiative but it was important to tighten up procedures.

The town clerk said that the shortfall as it stood could be accommodated, although this was an opportunity for the council to talk to its partners.

"But we can't stand a continuing deficit year in, year out," he said. Mr Gregory added that the initiative was a "superb" project that could bring real benefits to the community as a whole.

"Like all these things, there are lessons to be learned," the town clerk said, adding that it was important to get the town council's procedures lined up with outside agencies.