Quango defends Scottish Water chief�s lucrative deal By Paul Hutcheon, Investigations Editor
THE chief executive of one of the country's biggest quangos received a relocation package worth up to £100,000 in taxpayers' money to move from Yorkshire to Scotland.
A spokesman for Scottish Water said he "assumed" the public body paid up to £29,000 in stamp duty, which new boss Richard Ackroyd incurred when he purchased a house in Bridge of Allan.
SNP MSP John Wilson said he wanted Finance Secretary John Swinney to order a review of executive perks.
The row comes amid growing public anger at senior staff in the public and private sectors receiving bonuses and other perks.
Ackroyd took over the water quango last year after moving from a similar organisation in Yorkshire. Scottish Water's latest annual report states he was paid £263,000 in the last financial year, with a bonus of £101,000.
Ackroyd also benefited from a £96,183 relocation deal that was written into his contract. The package included accommodation in Scotland up until August last year, weekly travel, household removal fees, subsistence, as well as costs incurred when the chief executive sold his Yorkshire home and bought a property north of the Border.
The taxpayer also footed the bill for the "taxation consequences" of Ackroyd's move. Asked if this meant that the public paid for the stamp duty on the Band G, £725,000 home, a quango spokesman said: "I assume so." Stamp duty on the property, levied at 4%, would have cost the taxpayer £29,000.
Paul Spencer, a headhunter who has experience of negotiating relocation packages, said the deal did not appear to offer value for money: "I would have to say that £96,000 is a bit steep. I would say £50,000 would be more reasonable."
The annual report also reveals five Scottish Water executives, including Ackroyd, landed bonuses totalling £333,000.
Geoff Aitkenhead, asset management director, walked away with a £64,000 bonus, on top his £167,000 pay packet. Commercial director Chris Banks topped up his £155,000 salary with a £59,000 bonus. Douglas Millican, the finance director, was given a £65,000 bonus on top of his £168,000 wage. The quango was also criticised recently when it emerged that Ackroyd's predecessor, Jon Hargreaves, left his post with a £342,000 pension top up. In 2005, Hargreaves received a salary of £162,000, plus a bonus of £59,000.
A Scottish Water spokesperson said: "Richard Ackroyd was required to move from Yorkshire to Scotland to take up the role of chief executive at Scottish Water. Relocation costs incurred were included in the employment contract agreed by the Scottish Water board. This enables Scottish Water to attract the highest calibre of chief executive to lead one of Scotland's biggest businesses."
John Wilson, Central Scotland MSP, said: "Scottish Water should be delivering a first-class service to customers, not handing out fat cat packages to senior management. The cabinet secretary for finance should order an urgent review of executive pay and bonus in public sector organisations."
