A BURY councillor could face disciplinary action following a national watchdog investigation into his conduct.

The Standards Board for England says that Moorside councillor James Taylor failed to declare an interest during a council debate over the fees paid to private care homes.

At the time, Coun Taylor was the manager of a private home -- Moorfields in Tottington Road, Bury, which was owned by fellow Tory councillor Bob Bibby -- which meant he had a personal and prejudicial interest in the outcome, it adds.

The board has sent its verdict to the council's monitoring officer, and Bury's standards committee will decide what punishment to impose, which could involve suspension.

The Bury Times has seen the board's draft report, but understands that its findings are backed up in the final report.

Coun Taylor has represented Moorside ward for the last four years, and is contesting the new ward of North Manor in the June 10 elections.

He insists that he did declare an interest at the budget meeting in February, 2003, when Labour proposed spending an extra £200,000 on fees for private care homes, but that it was not recorded in the minutes.

However, the board's ethical standards officer concludes, after hearing evidence from several councillors and the clerk, that he did not declare it then, nor at two subsequent council meetings in April and May. At the time, there was a dispute between the council and 22 care homes over the level of fees Bury paid for their residents' accommodation.

The board says that the original council debate "could have resulted in an increase in the income of the business owned by his friend, Coun Bibby". The report adds: "It is also significant that at the time of the February meeting Coun Bibby was in the process of selling the care home business. The decision the council made on the level of care home fees could therefore potentially have an impact on the future profitability and consequently the saleability of the business." The home was sold on May 23.

Coun Taylor would not talk to the Bury Times, but Coun Bibby strongly defended his colleague.

"Everybody in the council knows that Jim was the care manager of Moorfields and that he had a share in the property," he said. "He was working under three months' redundancy notice at the time, and he had nothing to gain or lose.

"He declared an interest, and it was not recorded. Coun Creswell and Coun Gunther remember it. You cannot depend on the reliability of the minutes."

Coun Bibby accused political rivals of causing mischief before the elections by leaking a confidential report.

"Is that the ethics and standards which they playing by? If so, that leaves a lot more to be desired than what Jim is supposed to have done."