THE Labour Party is calling for an independent inquiry into the spending of a Teesside council.

The opposition group of Redcar and Cleveland Borough Council has called for a probe into the disposal of assets following recent decisions made by the council's coalition cabinet.

At the last cabinet meeting, members decided that offices and storage in its ownership at the corner of Dundas Street and Bath Street in Saltburn should be sold to the highest bidder, who offered £433,315, rather than to charity Groundwork South Tees.

The charity, which carries out community-based environmental improvement projects, had offered £75,000 for the property and promised to provide meeting rooms for community groups and to lease back the stores facility to the council.

At the same meeting, cabinet members decided to sell sites at the Lodge Farm former care home in Eston, and the former petrol filling station site at Roseberry Road in Redcar, for 50 per cent of their market value.

This was done in an effort to attract a private partner to develop extra-care housing for older people in the borough.

Labour Councillor Brenda Forster said: "This is not only inconsistent, but a scandal, given the state of the council's finances.

"I would like the audit commission to conduct an independent inquiry into these decisions."

Labour leader Councillor George Dunning said: "The coalition decided to sell the Saltburn property to the highest bidder - yet went on to agree to advertise two major sites at a reduced rate, costing the council tax payer £325,000 in lost income."

But Ray Richardson, director of finance and procurement at the council, said: "Regarding the property at Bath Street, we have a duty to get best value for the council.

"The decision was in line with the council's asset management plan.

"The storage area has been moved to another location, so no council facility has been lost.

"We are in talks with Groundwork over several suitable sites for the organisation.

"As far as the other sites are concerned, one of the council's objectives is to keep elderly people in their homes for longer. Part of that is providing extra-care housing.

"The benefits for our citizens from this decision is that better social care outweighs the partnership receipts from the land."