MONKLANDS District Council last night agreed to go ahead with a public

inquiry into allegations about the way it has been running its affairs

-- but only if Scottish Secretary Ian Lang gives an assurance that none

of the members will be surcharged to meet the costs involved.

The council has also agreed that the total cost of the inquiry should

be no more than #50,000, which is a relatively small sum in terms of

such exercises.

For more than two years, the council has been accused of a wide range

of misconduct, including nepotism and sectarianism and a spending bias

in favour of Coatbridge and against Airdrie.

It has always denied the allegations and has tried without success to

persuade Mr Lang to order an official inquiry to clear the air.

But it believes it can go ahead and order an inquiry itself, despite

warnings from council officials and legal advisers that it could be

acting outwith its powers and therefore exposing members to the risk of

personal financial penalties.

At a meeting at the council's headquarters in Coatbridge last night,

members backed a resolution moved by Councillor Eddie Cairns, secretary

of the Labour group, and seconded by the group leader, Councillor Jim

Brooks.

This called for the Faculty of Advocates to be asked to nominate an

appropriate person to chair an inquiry, but it also laid down the

preconditions of a limit on the cost and a guarantee of no surcharges.

Councillor Cairns argued that the council could hold an inquiry on the

grounds that it would be in the economic interests of the inhabitants of

the district, because the stigma created by the allegations was

deterring inward investment.

''For the past two years, many accusations have been levelled against

this council, and these have been allowed to grow.

''There is no rush for new industries to come here. This has been

attributed to the cloud which has been hanging over us for the past two

years. I am concerned that the district will not benefit until this

matter is aired.''

Provost Bob Gilson told the meeting: ''I think that if the Secretary

of State was representing Scotland in the way that he should, this

inquiry would not need to come from us but would be held by him.''

In a legal opinion sought privately last week by Mrs Helen Liddell,

Labour MP for Monklands East, and passed on to the council's Labour

group, Mr Andrew Hardie QC, Dean of the Faculty of Advocates, said it

was within the council's powers to hold an inquiry and there was no risk

of the members being surcharged.

But in a report presented to the council last night -- details of

which were revealed in The Herald earlier this week -- chief executive

Maurice Hart and other officials warned that holding an inquiry could be

outwith the local authority's powers unless it met strict criteria.

The principal relevant reason for holding an inquiry had to be to

benefit the area or its inhabitants, Mr Hart told councillors last

night.

After the meeting, Councillor Brooks told reporters: ''The Secretary

of State must take some responsibility. He has allowed this area to be

denigrated for more than two years and his colleagues have used it very

well in Parliament.''

If Mr Lang refused to give a no-surcharge assurance, then the council

would have to consider alternative methods of erasing the stigma, said

Councillor Brooks.

Last night's resolution was backed by all 17 Labour members on the

council. The other three councillors, all SNP, voted instead for some

relatively minor amendments.