COMPANIES winning Scottish Government contracts could be forced to pay their staff the living wage if it is legal under European regulations.

Finance Secretary John Swinney said the Government was seeking advice because EU law on the public procurement process was not sufficiently clear.

The Scottish Government has already introduced the living wage for its own staff, with the rate being set at £7.20 from April next year. It is also encouraging local authorities and other organisations to adopt the measure.

Mr Swinney told Holyrood's Local Government Committee yesterday: "EU law limits the extent to which public bodies can require contractors to pay 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. What we would have to be confident about, in terms of the scrutiny of procurement by the European Union, is that the approach would be deemed to be consistent with our EU procurement obligations. The statements from the EU Commission to date have not given us that clarity."

Mr Swinney told MSPs if the answer from Brussels was positive, he would pursue the policy. He said: "I believe the living wage should be applied where it can be deployed in a sustainable way."