CAMPBELL THOMAS
A council chief is to receive a pay-off of almost £250,000 as his authority faces financial crisis.
Tom Cairns, chief executive of cash-strapped South Ayrshire, agreed the package after a confidential report said he lacked the "necessary skills" to take the council forward.
Mr Cairns, who was only appointed to the Conservative-led council three years ago, will remain at his desk on a salary of £115,000 for a further year - despite his directors saying they have lost confidence in him.
Senior councillors said the move left the chief executive in an "untenable" position.
The leaked report reveals Mr Cairns had been in talks with senior council members and agreed his departure would be in the best interests of the council, which faces a £2m deficit just five months into the financial year.
The report said: "The question has been raised whether in terms of the necessary skills, the current chief executive is best placed to take the council forward at this time in the manner required.
"Recent informal discussions with the chief executive have reached a conclusion, accepted by him, that it would be appropriate at this point (to consider appointing) a new chief executive to help the council move forward and meet the various challenges it faces.
"The chief executive is aware of that conclusion and would be willing to leave the council in the interests of efficiency of the council's services on the basis of a satisfactory package."
Mr Cairns will leave the council next August with a "golden handshake" of £233,000, comprising a lump sum and pension package. The deal, described as "early retirement by mutual agreement" and with a confidentiality clause, was scrutinised externally to ensure it met Accounts Commission standards.
At a private meeting of the council last Friday, Hugh Hunter, the Tory council leader, proposed Mr Cairns should go immediately with a £289,000 pay-off. Labour wanted the status quo, but councillors approved an SNP move to keep him in his post until August 2008 before giving him a £233,000 package.
On Monday, however, South Ayrshire's corporate management team, comprising the most senior directors, met and agreed they had lost confidence in Mr Cairns' leadership, according to a senior source.
The source said: "If the CMT say they have lost confidence in Tom and he doesn't leave until next August, how the hell do you run the council?
"The real problem goes back a long way to when the council was formed and they never put an appraisal system in place for the chief executive's post. Nothing was done for 10 years and an appraisal system is just being started for senior officers, but we've been overtaken by events.
"Tom's a nice guy but I think the problem is he was promoted beyond his own abilities under the last administration.
"The corporate management team issued an ultimatum saying they had already lost confidence in him and didn't believe they could work with him. I suppose you could call that insubordination and take them out into the courtyard and shoot them, but with our luck we'd miss."
In a statement, South Ayrshire Council said: "Tom Cairns has committed to remain in the position of chief executive at a time when the council faces a number of immediate challenges and changes. On 31 August 2008, Tom Cairns will vacate the position of chief executive."
Mr Cairns was on holiday and could not be contacted.
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