Arun staff forced to reveal their bank details

They have decided to accept they have to take part in the national fraud initiative being run by the Audit Commission.

But they have vowed to continue their fight against the requirements even though they back the fight against fraud. They hope to gain national publicity against what they view as an intrusive law, which is designed to make life hard for would-be terrorists.

Cllr David Biss (Bognor Orchard) said: "It's welcome to the police state. I firmly believe we should keep up the pressure. This matter is getting out of hand."

The legal requirement is for the council '“ as well as other public sector authorities '“ to hand over all the bank account details of serving and past councillors as well as retired and current staff. This will be matched against the records of those claiming benefits to see if any are making fraudulent claims.

Some 1,300 individuals will be affected. Even joint bank accounts where the other account holder has no connection with the council are included. Failure to comply would see Arun taken to court and facing a hefty fine for breaking the law.

This has been confirmed by counsel Martin Westgate. He was consulted by the councillors about their legal ability to refuse to hand over the data. As reported, members held a meeting with Peter Yetzes, the Audit Commission's director of the initiative.

It was an encounter which left them depressed. Cllr Barbara Oakley, chairman of Arun's audit committee, said: "He left us in no doubt that the initiative is based on the premise that, in his words, everyone has the potential to commit fraud.

"His remarks are an insult to the decent, hard working staff in the fire service, local government and the NHS who are all now regarded by him as potential fraudsters."

Cllr Tony Squires said: "This is the most pernicious piece of legislation that has come in."

As part of their decision to obey the law, councillors told their officers to monitor the operation of the data matching exercise.

This will be reported back to them so they can consider their response to a review of the initiative which the Audit Commission has promised to carry out.

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