QUESTIONS are being asked over why the chief executive of Basildon Council received a pay rise of 20 per cent - taking his earnings to £165,000.

On Friday, the Echo revealed Bala Mahendran's earnings - including bonuses, allowances and election fees - leapt to £165,877 from £138,918, in financial year 2006/07.

Nigel Smith, Basildon Labour group leader, said he was surprised by the hike.

He said: "Bala is a very able chief executive, but this increase is a decision of the Tory administration.

"The issue is whether people are getting value for money and the latest audit inspection gives the council two out of four, which is mediocre.

"In terms of the increase, if we are getting value for money then fine, but council leader Malcolm Buckley has some explaining to do and there are legitimate questions about what Bala's targets were."

Billericay's Tory MP John Baron issued a press release, as news broke of Mr Mahendran's bumper pay package, which condemned the rising cost of living for families.

The release was sent by e-mail to a number of Tory councillors, including Frank Tomlin (Laindon Park), who was reportedly appalled by the huge increase for Mr Mahendran.

In a reply to Mr Baron he wrote: "Quite so. At least Bala Mahendran is safe from penury."

Mr Baron would not be drawn on Mr Mahendran's salary, arguing the Government was more out of touch with reality.

He said: "This is a matter for the council."