THE four candidates bidding to take over the leadership of

the scandal-ridden North Lanarkshire Council will be told today by a senior Labour Party official what is expected of them, should they win Monday's crucial vote.

It is understood that Scottish Labour Party general secretary Alex Rowley will meet the candidates in Motherwell and outline the party vision for a completely new leadership style after the uproar over a #4.5m deficit in the council's direct labour and direct services organisations.

It was this that finally caused the downfall of former leader Harry McGuigan, who has consistently denied he was to blame for the financial crisis.

Although steps were taken to stem the haemorrhage of money, it is understood a further #1.1m has been added. A council source said the haemorrhage had now stopped but the total deficit had burgeoned to about #5.6m.

Scottish Secretary Donald Dewar has issued a closure order on the DLOs, but councillors are still hoping that drastic remedial measures might still save some of the 1600 jobs at risk.

The four candidates - deputy provost Barry McGuigan, deputy group leader James McCabe, planning convener James Coyle, and Councillor John Murphy, have all signed a ''covenant'', committing them to accountability and transparency.

As the first step towards establishing a ''cabinet style'' administration, the ruling Labour group has decided that the group leader should no longer chair group meetings. This is in accordance with ''model'' standing orders announced by the Labour Party when local government was reorganised in 1996 but which North Lanarkshire breached by allowing Councillor McGuigan to be both leader and chairman of the Labour group.

A likely candidate for chairmanship of the Labour group would be chief whip Councillor Joe Shaw, whose calmness and statesmanship has impressed many in Labour Party circles during the last three months of crisis at the Civic Centre.

It is likely the administration will set up a backbenchers' committee, while one or two backbenchers may be invited to join the new ''cabinet'' in order to broaden the decision-making base. There is even a possibility that opposition members might be involved.

Mr Shaw said: ''Not all the best brains are Labour brains. Dick Lyle, the SNP leader, has been doing the things he should be doing as opposition leader. It's very irritating, but at the end of the day his motives are probably the same as mine, which is to have the best council possible.

''We've got a chance to do something different and to that end I'm interested in the Labour Party giving us all the help they can.''

Mr Shaw disclosed that every group member would be required to sign the local government Code of Conduct, hopefully eliminating any digression from best practice. Previously members were simply advised to follow the Code of Conduct. This time they would sign an acceptance paper, he said.

Councillor Lyle said: ''We would welcome any change in the way North Lanarkshire is run, but the SNP will continue to attack Labour on the way they have run the council and its finances.''