A NORTH-EAST councillor who provoked an outcry by claiming allowances while living 5,000 miles away in the Caribbean announced last night that he will resign.

And Stephen Gregory, from Bishop Auckland, County Durham, vowed he would return to Britain before Christmas to settle scores with political opponents he accused of stirring up trouble.

The independent member of Wear Valley District Council has received a weekly allowance of £89.08 since he moved to the Dominican Republic in January, attending one meeting during a trip back home in July.

He has been sent notice of council meetings by e-mail and constituents have been given a phone number to ring if they need his help - but this is normally answered by a recorded message in Spanish.

Because councillors must attend at least one meeting every six months - unless there is a good reason - Mr Gregory faces automatic disqualification if he does not turn up at one of two meetings scheduled before his January 7 deadline.

The last is set for December 17, the date he has given the twin sons he left behind with his former wife in Bishop Auckland, for his return.

Speaking from the Dominican Republic yesterday, the 47-year-old former butcher said: "I might attend a council meeting simply to put one or two people right about things.

"But I will resign. I will be terminating everything with Wear Valley District Council when I return."

Unrepentant over his actions, Councillor Gregory, who was originally elected to the council as a Liberal Democrat, claimed he acted on advice from senior councillors.

He said: "I haven't committed any crime. I don't think I have abused the system at all."

But his former council colleagues last night demanded changes in the council allowance system.

At a meeting in Crook Civic Centre, they approved a motion from Wear Valley's Lib Dem leader, Chris Foote Wood, calling for a new Government order permitting local authorities to vary the basic rate to reflect the number of meetings attended.

Councillor Foote Wood said his opponent's actions were wrong. He said: "People are fed up with politicians and the political system. The actions of Councillor Gregory have added to that negative feeling."

Mr Gregory said: "He thinks because I am 5,000 miles away he can wreak havoc and get away with it.

"I will meet Foote Wood when I get back to England."

Council Labour leader Olive Brown said: "He hasn't told us he is going to resign and until he does there is nothing we can do.

"This is certainly an issue that needs addressing."