AN investigation into an Audit Commission report criticising a North council's handling of a consultant's contract on sea defence work will be held in public.

Scarborough Council also agreed that cross-party members should meet to decide what action needs to be taken.

Council leader councillor Eileen Bosomworth said: "It will put in place a protocol which ensures it does not happen again"

She said the matter dated from 1997, when contracts were being awarded for a £40m scheme to save the area's coastline.

The work included Scarborough's South Bay, Runswick Bay, Robin Hood's Bay, and the Royal Albert Drive, Marine Drive and East Pier at Scarborough.

The Audit Commission said the council broke the law by giving contracts worth £1.4m to High Point Rendell to design the scheme, without putting the work out to tender. Coun Bosomworth said the inquiry, and any action that may be necessary, would be vigorous, and said: "There will not be a witch-hunt, just a search for the truth."

She said the remainder of the multi-million pound contract had been dealt with legally and in full accordance with rules.

The council agreed with the eight recommendations put forward by the Audit Commission to improve procedures.

Independent group leader Councillor Peter Popple said: "This report has undermined the council's credibility and the public's trust in their councillors."

Scarborough MP Lawrie Quinn has written to Local Government Minister Nick Raynsford asking if it was legitimate for the Department for the Environment, Food and Rural Affairs, which funded the defence scheme, to pay the consultant's bill when the contract did not go out to tender.