COUNCIL chiefs at Pocklington today moved to reassure townspeople that the authority was not going bankrupt.

Richard Wood, town clerk, has scoffed at suggestions that Pocklington Town Council may have to fold after losing the Martin Layton employment tribunal.

Newspaper reports suggested that the cost of settling Mr Layton's claim - estimated at £50,000 - would be too much for the council to bear.

But Mr Wood told the Evening Press that there was no question of the authority going bankrupt.

He said: "There will be pressure on finances whenever an award is made, but the authority will not go bankrupt.

"Assets are in place to achieve payment of any award to Mr Layton."

An employment tribunal decided that Mr Layton, 60, the former town clerk, had been unfairly dismissed by the town council after 15 years service.

A damaging tribunal report said that the then mayor, Coun Rowan Blake-James, "encouraged" a campaign to drive him out of his post, and that "minds were closed" to any form of action except dismissal.

The Evening Press understands that the council has been building up its cash reserves, in response to a request from the district auditor.

These reserves are believed to be in the region of £50,000. It is this cash which will cover the cost of an award to Mr Layton, which will be decided in a new hearing next month.

Meanwhile, town councillors will convene tomorrow night, for a meeting behind closed doors, to discuss the affair.

Mr Wood added: "We will be talking about the report itself, the lessons that can be learned and the way forward.

"It will take some time to fully reflect on the report which accompanied the judgement."

Mr Wood would not speculate on whether councillors would discuss the position of Coun Blake-James.

She has said that she would be "guided by her fellow councillors" after Mr Layton and council critics called for her resignation over her role in his dismissal.

Updated: 11:28 Wednesday, April 17, 2002