At last! Huge pay-offs for fat cats set to end

Bid to ban six-figure public sector deals

SIX-FIGURE pay-offs for public sector fat cats would be banned under proposals being examined by ministers.

The Scottish Government is considering a cap on the amount public bodies can give to staff in so-called ‘golden goodbye’ deals. The move comes amid mounting controversy about the gold-plated deals some senior staff have been offered.

In December, the Scottish Daily Mail revealed that 297 Scottish Government workers have received six-figure packages when they have volunteered for severance deals.

Seven received more than £250,000 and one was awarded an eye-watering £315,000.

The idea of imposing a cap on pay-offs is part of a newly published Scottish Government consultation. It would apply to councils, NHS boards and quangos, as well as civil servants.

Ministers are also looking at ‘clawing back’ money from staff who return to work for public bodies after accepting a deal.

The move was welcomed by opposition parties, who say millions in ‘excessive payouts’ has been needlessly given out.

New devolved powers will give ministers control over severance deals. They are looking to the situation south of the Border, where a cap of £95,000 has been introduced on people leaving public sector bodies.

This could apply to ‘all types of arrangements’ including any pension top-up deals. It also means where staff return to work in the public sector within a year of taking a deal, they face having to pay back a chunk of their exit package.

Last year, the Mail revealed that 3,443 members of staff at the Scottish Government and its agencies have benefited from ‘exit packages’ costing £147.4million since 2009-10.

Similar deals have been handed out at a range of public bodies, with the cost estimated at £120million a year. The case of former Coatbridge College principal John Doyle, who got a £304,000 payout when it disappeared in a merger, is among those to spark public anger.

The value of deals can vary depending which part of the public sector staff work in, or in which area they are based.

Murdo Fraser, the Scottish Conservatives’ finance spokesman, said: ‘The time to do this should have been ten years ago when the recession was beginning to bite across the country.

‘Since then, millions of pounds in public money has been needlessly given to those who have enjoyed excessive payouts. That’s irresponsible government and I hope ministers use this opportunity to address that.’

Liberal Democrat MSP Alex Cole-Hamilton said: ‘To maintain public trust, it is important that the Scottish Government ensures that any payouts are proportionate and justified.’

A Scottish Government spokesman said: ‘We want to ensure severance arrangements are fair and equitable while providing value for money for the people of Scotland.’

Comment – Page 14

‘Irresponsible government’