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Further to the news story 'Authorities scramble to fund pay claims' (LGC, 11 June) Redcar & Cleveland BC has succee...
Further to the news story 'Authorities scramble to fund pay claims' (LGC, 11 June) Redcar & Cleveland BC has succeeded because we planned what we were doing and did not scramble.

Solictor Stefan Cross advertised for business with wildly exaggerated promises of free money through pay tribunals, just as we were concluding our single status deal.

We have covered our compensation scheme and the cost of single status within our own resources.

The ODPM has been very helpful in covering the potential costs of£4.5m from the tribunal through a flexible capitalisation direction.

Twenty five percent of this goes straight to the personal wealth of Mr Cross. After tax, his clients will receive little more than they would through our compensation deal. Is this really a good use of public money or a loophole the Law Society should close as a matter of urgency?

Colin Moore

Chief executive, Redcar & Cleveland BC

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