TWO senior council officers have been severely reprimanded following revelations that Lancaster market traders were allowed to run up rent arrears totalling £270,000. But council chiefs have pulled back from formal disciplinary proceedings even though Council Leader, Stanley Henig, described the situation as "totally deplorable." A total of eight officers were this week interviewed by Deputy Chief Executive, David Corker, who made it clear their behaviour had been unacceptable.

Mr Corker told the Citizen: "I warned them that a repetition would involve formal disciplinary action. I can confirm that two senior officers were involved."

The massive rent arrears came to light at a special meeting last Friday evening, when an internal auditors report revealed that the council's rent collection procedures had broken down.

Councillors were shocked by both the scale of the debts and the fact that it was the first they knew about the scandal.

The rent arrears have been reduced to £180,535 but Cllr Carol Broad said she was unhappy about the lack of formal action.

"It's obvious that council staff knew there was a problem but said nothing. It's worrying when officers aren't exactly truthful with members. There are definite grounds for formal disciplinary procedures but with two tourism officers suspended recently I don't think they want even more bad publicity."

Council Leader, Stanley Henig, said: "What has happened is totally deplorable. It is clear that procedures laid down by members have not been followed in this case. I am satisfied that David Corker has taken the appropriate action to ensure that this problem does not recur and also to make sure that the staff concerned understand their position."

Market traders spokesman, Bill Byrne, said the move into the new market had caused problems for some traders.

He said: "Everyone knew certain traders were in arrears but on the whole most tenants were very grateful to the officers, who were sympathetic to their cause. It's taken time to readjust to the new market and the passing trade is not as good as it used to be by any means, but it's being sorted out."

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