TOWN hall bosses have been criticised by inspectors for handing out bumper pension packages.

The District Auditor worries that Bury cannot afford to carry on being the most generous council in the region to staff taking early retirement.

But councillors are unrepentant, saying it was either that or dishing out hundreds of P45s.

They say Bury went through several "nightmare" years of budget cuts when many jobs were at risk. Giving over-50s the maximum possible payments encouraged many to take voluntary early retirement, meaning that compulsory redundancies were kept to a minimum.

Nonetheless, they have called for a full report detailing all aspects of early retirement policy, long-term planning and employment alternatives.

The report will also reveal how many former employees have taken early retirement and just how much it has cost the local authority.

Coun Trevor Holt, chairman of human resources, said: "The district auditor has said this is something we might have to take a close look at to see whether we can continue.

"But we make no apology for that. Enhancing people's pensions was an alternative to compulsory redundancies and helped us through bad times and some fairly horrendous years."

Proportionately, Bury had to lose more staff than any other Greater Manchester authority.

Coun Holt added: "Hopefully the real nightmare years are over and things will slowly get better and there won't be any need for redundancies in future."

The report will be presented to councillors later this year.

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