Banning pay-outs in public sector ‘would send a clear message’

A LEADING Scottish pressure group has said that “banning bonuses across the public sector would send a clear message” about executive pay, amid mounting public pressure for action to curb the awards.

Eben Wilson, director of the Taxpayers’ Alliance Scotland, said bonuses had become “an expected part of total pay – even following failure”, adding that bonus culture had “burgeoned” north of the Border.

The row came after The Scotsman previously revealed that almost £10 million in bonuses was paid by Scotland’s taxpayer-funded quangos during 2010-11.

This included five-figure sums handed to individual staff members during that time.

David Lonsdale, the assistant director of CBI Scotland, said: “Exceptional pay is only ever justified by outstanding performance, and bonuses for mediocre work or for poor performance are unacceptable.”

Mr Wilson added: “The bonus culture has clearly burgeoned recently out of financial services into senior management and the bureaucracy.

He said: “While there is nothing wrong with earning a good salary from good performance, the worry is always that the bonus becomes an expected part of total pay – even following failure. Banning bonuses across the public sector would send a clear message.”

A Scottish Government spokeswoman said: “Our pay policy suspended access to bonuses in 2011-12.

“They have been suspended again for next year, on the back of many chief executives waiving them in 2009-10 and 2010-11.”