About half of the 22 local authorities in Wales are likely to opt for capitalisation to pay their equal-pay liabilities. The total cost of the problem has now risen to £306bn, Steve Thomas, of the Welsh Local Government Association, told the Welsh Assembly – but minister Sue Essex expressed her surprise that so few had so far come forward. Mrs Essex said: ‘I am disappointed that there are only three so far – Torfaen and Neath Port Talbot, and I have had talks with Denbighshire.' The minister said back-pay had been the ‘elephant on the doorstep which people have been trying to avoid'. She mentioned the problems of capitalisation, including the burden for the future and the effect on the public sector borrowing requirement. ‘But we aim to be supportive, not to be difficult,' she added. Steve Thomas pointed out that some councils, whose large balances would seem to preclude capitalisation, had retained the money for very large capital programmes. He added that councils possessed a material legal defence over the issue – there had been no intention to discriminate against women. It was rather about issues such as bonus schemes.
