STV chief insists job cuts are ‘horrible but necessary’ at station

STV chief executive Simon Pitts has told MSPS plans which could see more than 50 workers lose their jobs are “necessary” to guarantee the future of the broadcaster and denied it is being readied to be sold off.

The media company announced plans last month to close its lossmaking STV2 channel and restructure its news operation, putting 59 jobs at risk and sparking a ballot for industrial action.

Mr Pitts told Holyrood’s culture committee “hardly anyone” watched STV2, with the flagship 7pm news programme attracting 1,800 viewers, and plans to create shows in Scotland to be sold worldwide “if we get it right” could create many more jobs.

He was also challenged to justify his remuneration package in light of the planned cuts, which includes a £853,000 “golden hello” on taking up his job in January, comprising a £187,000 payment along with deferred shares worth £666,000, in addition to his basic salary of £400,000.

Green MSP Ross Greer said: “You, this year, will receive £1.2 million in total earnings. There are people in your newsroom on £18,000 a year, journalists who are facing redundancy.

“Now, the harsh decision for them is that that’s their livelihood and it must be incredibly hard for them to stomach that when they see people at the other end of the organisation receiving the kind of remuneration that you are.

“Do you understand how harsh that is for them and did you consider forfeiting any of your total potential earnings for this year?”

Mr Pitts did not clarify if he had considered forfeiting any of his remuneration but said the package had been approved by the STV board and shareholders.

He said: “I understand how difficult the situation is for the people who are facing redundancy. It’s horrible.”

STV made a profit of £18m last year and the changes are expected to save £2m a year, with a further £5m a year being invested in new programmes.

“This is not a strategy to prepare STV for sale to ITV or anyone else,” Mr Pitts said.