Tom Gordon

THE Scottish Government has defended spending £40,000 to find the first chief executive of the Scottish National Investment Bank.

A public contract notice issued by SNP ministers on Friday showed the work had been awarded to global recruitment firm Odgers Berndtson.

The headhunters will develop the job description for the bank’s boss and work out their likely salary by benchmarking it against comparable posts in the public and private sector.

They have also been asked to “attract high quality candidates with a strong emphasis on diversity and inclusion”, run the recruitment process and schedule interviews.

Announced by Nicola Sturgeon in late 2017, the SNIB is intended to provide “patient capital” for Scottish companies which might otherwise struggle to find it, helping them borrow money over a 10 to 15 years, funding which is often critical to business expansion.

The SNIB is expected to be up and running by 2020, with the Scottish Government having committed £2bn over 10 years to capitalise it.

In recent months, ministers have also said they want it to take a key role in tackling climate change by investing in firms that will help move Scotland to zero carbon emissions.

MSPs are currently examining the detailed legislation behind the bank, and have already suggested giving themselves a role in its direction.

Former Tesco Bank CEO Benny Higgins, who is the chief adviser on the new body, last year said there would be pay-caps on top personnel.

“We are not going to be chasing salaries at the top end of what’s possible,” he said..

Scottish Liberal Democrat leader Willie Rennie said the bank must not become a cash cow for consultants and headhunters.

Last year ministers awarded a £2.5m contract to Deloitte LLP for “professional services” on the bank.

He said: “Previous SNP economic initiatives have launched with great fanfare yet fallen woefully short. The Scottish National Investment Bank needs to pack a real punch.

“It must not be allowed to become a goldmine for head-hunters and expensive consultants

“We need serious investment in the Scottish economy to deliver a transformational investment in education and skills and fight back against climate change.”

Scottish Tory finance spokesman Murdo Fraser said: “It’s vital this new bank is seen to be efficient and value for money, and certainly not return to the extravagant banking days of old.

“Many will think this is excessive money to spend simply on finding a boss. It certainly doesn’t suggest a lean and prudent operation.”

A Scottish Government spokesperson said: “The Scottish National Investment Bank has the potential to transform Scotland’s economy, and requires a CEO with the appropriate skills and experience to be able to lead such a high profile financial institution.

“It is common practice at this level in the financial or public sector for a recruitment agency to be used to help to attract the best and most diverse possible field of candidates.”