The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 3919 contributions
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
Thank you. I want to pick up on a couple of points relating to Stuart McMillan’s questions to you. Back on 1 June 2023, Mr Miller, the chair of the board of FMPG, had an exchange with the committee in which we asked him about the performance bonuses that seemed to prevail at the time, particularly among the senior management team. He said that they were not performance bonuses but retention payments. I suppose that there are two ways of looking at that. Is it the case that there is no longer a retention payments regime so people are leaving the business en bloc, or does some kind of performance bonus system still exist that applies to members of the senior management team at FMPG?
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
I accept that process was followed, but the Scottish public finance manual has a certain status, does it not? The situation is probably a reflection on previous inquiries, including those that this committee has conducted, into situations where people have performed badly and, to use a colloquialism, have been rewarded for bad behaviour. They have walked out of a public sector organisation with a large amount of public money by way of a settlement agreement when, in most objective observers’ eyes, they should not have received some kind of reward but should have left with no extra payments other than those that they were contractually due.
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
To recap the figures involved, the person was originally engaged on a salary of £36,000, which then rose to £54,000. However, what the report documents is that, in the period from February 2023 to March 2024, FMPG was invoiced by the individual’s company for £144,000. That is quite a leap in payment, is it not?
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
If the individual was seconded from CMAL, I presume that CMAL was party to those agreements.
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
Stuart McMillan has the final question.
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
I want to be clear about what Mr Boyd said. He said that the original £36,000 was the net salary figure. We are looking at the other figures. I presume that the invoice for £144,000 did not take account of the fact that there was going to be a tax liability of £48,000.
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
A framework agreement has been put in place between the Scottish Government and FMPG in an effort to clear up some of these matters and to ensure that we have good governance arrangements. One part of the framework agreement is headed “Staff Management”, and bullet point number 1 is:
“the recruitment of its staff”—
that is, FMPG’s staff—
“is based on fair and open competition and equal opportunities”.
The case that we have just been discussing is not likely to pass that test, is it?
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
Good morning. I welcome everyone to the second meeting in 2025 of the Public Audit Committee.
The first agenda item is a decision on whether to take agenda items 3, 4 and 5 in private. Do members agree to take those items in private?
Members indicated agreement.
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
Before we leave the business plan, I will ask you a couple of quick—I think that they are quick—questions on the small vessel replacement programme.
The FMPG board is attended by strategic commercial assets division representatives. In the most recent published minutes that are available on the Ferguson Marine website, which are from the board meeting of 30 May 2024, FMPG directors clearly indicated that they had obtained legal advice that supported the case for a direct award. Do you know anything about the dynamics of that?
Public Audit Committee
Meeting date: 16 January 2025
Richard Leonard
Okay—thank you for that. I now invite Stuart McMillan to put some questions to you.