Newry's council plans to hold its annual Christmas staff party this year despite a High Court action over the cost of a previous party.

Newry and Mourne Council has been holding a food and drinks party every year.

But the local government auditor is challenging the expenditure of �2,912.97 on the party for about 200 staff held in the town hall in 1999.

The auditor has said the expenditure was unlawful because it did not meet the legal test of bringing direct benefit to the council.

Challenge

The auditor is now seeking a legal declaration that the council was not entitled to entertain its staff.

However, the case is to not to be heard until next March and this year's Christmas party has already been pencilled in for 20 December.

The council's solicitor Rory McShane said he was of the opinion that the council was acting lawfully.

"We believe we are acting as a good employer and are fully entitled to incur this expenditure." he said.

Legal advice

"Nothing I have seen makes me change my mind about the lawfulness of the council hosting a Christmas party for staff and I will continue to so advise the council.

"It is a matter entirely for the council to decide how its acts on that advice."

The council's chief executive Thomas McCall said the party went ahead last year on legal advice and if that did not change this year, the 20 December party would go ahead.

"The only way that would change is if the advice changed or the court ruled against us," he said.

"We accept the current advice that what we are doing is legal and lawful."

Mr McCall said the council is to meet on 2 December to hear updated legal advice from its solicitor.