MSPs call for end to big public-sector bonuses

Published on Monday 22 June 2009 22:52

SENIOR public-sector executives could be barred from getting big bonuses following a hard-hitting report from a Holyrood committee.

The Scottish Parliament's finance committee called for a full review of the policy of paying bonuses of more than 10 per cent to senior figures in the public sector.

The committee report adds weight to recent appeals from finance secretary John Swinney for self-restraint from senior public executives.

Committee convener Andrew Welsh said: "The evidence provided during this inquiry has left the committee in no doubt that there are areas of the existing public-sector pay policy in Scotland which could be improved.

"The committee firmly believes the number of pay bargaining areas could be reduced, and while recognising that some progress has been made, it is calling for the Scottish Government to ensure the length of time taken to process pay proposals is shortened."

He added: "In terms of the policy for senior appointments, the committee makes clear to the Scottish Government that the policy of paying bonuses to senior staff should be reviewed."

Directors at Scottish Water have a potential annual bonus of up to 40 per cent of their basic salary. That is higher than the current public sector pay policy for senior appointments, which states the maximum potential bonus is 10 per cent of base pay.

Officials also confirmed that the chief executives at Scottish Enterprise and the tourism body VisitScotland were eligible for a bonus of above 10 per cent.

The total amount of bonus payments to chief executives in 2007-8 was 190,000.

Mr Swinney has already urged chief executives to consider giving up their bonuses, saying they would only be paid a bonus if their performance at work was "exceptional".

A Scottish Government spokesman said ministers would "note the report" and respond in the future.