Ministers to seek ‘living wage’ down supply chain

Finance secretary John Swinney said the government was seeking advice on whether it can introduce the measure to the public procurement process.

The Scottish Government has already introduced the living wage for its own staff through its 2011 public sector pay policy, with the rate being set at £7.20 from April 2012. It is encouraging local authorities and other organisations to adopt the measure.

Mr Swinney said the government was also keen to pursue the living wage as a condition of its procurement process.

But EU law, which sets out the parameters of procurement regulations, was not “sufficiently clear”.

Speaking at the local government committee in Holy- rood yesterday, Mr Swinney said: “We should not lose sight of the fact that there are wider implications of using public procurement as a means of promoting the living wage, that go beyond employment issues, such as the cost and practical implications for private and third sector organisations competing for public sector contracts.

“EU law limits the extent to which public bodies can require contractors to pay their staff a living wage as part of the procurement process.”

He added: “I think there is undoubtedly a legislative vehicle that can be used to require contractors who are responsible for public sector contracts to pay a living wage.”

Mr Swinney said Alex Neil, the infrastructure secretary, had written to the European Commission and was awaiting a response.