COUNCIL leaders in Wales are unhappy with proposals to award "golden handshakes" of up to £15,000 to retiring councillors - because the pay-offs would be taxed.

Representatives of the 22 local authorities in the Welsh Local Government Association, led by Newport council leader Sir Harry Jones (pictured), are due to meet in Llandudno on Friday, where the issue will come up for discussion.

The association's co-ordinating committee notes: "The development of a members' severance scheme is supported, however the maximum figure of £15,000 is subject to tax and this should be contested."

The Argus first revealed the proposal to offer a one-off payment to elderly male councillors to encourage them to resign on March 2.

It was part of the Assembly government's paper outlining its plans for the future of local government. The idea is a response to the lack of young people, and women in particular, involved in local government. The average age of councillors in Wales is 58. Under the proposal councillors aged over 60 would be eligible for a payment of £750 for every year's service up to a maximum of 20.

If the WLGA do decide to contest the idea they are unlikely to win popular support from the public.

The recent adoption of new expenses for councillors - where cabinet members receive salaries of around £20,000 and leaders are paid equivalent with AMs at £40,000 - has already proved controversial across Wales, and this latest twist will only add fuel to the flames.

Another item up for consideration on Friday will be whether there should be changes in the number of councillors elected to each council.

Some non-cabinet councillors have claimed they no longer have a meaningful role in the new arrangements, although supporters of the new system argue that they are still needed to scrutinise the decisions of the cabinet and to speak up for their wards.