New measures will encourage transparency in public bodies

New legislation will force public bodies to reveal how many of their workers earn salaries of more than £150,000. The Public Services Reform Bill, which was passed by Parliament today, will also require any spending over £25,000 to be made public.

Additionally, any expense on overseas travel, public relations, hospitality and entertainment, as well as external consultancy, will have to be declared in a drive to encourage greater transparency.

Tory finance spokesman Derek Brownlee told MSPs: “By forcing public bodies to be more open about some of their expenditure which they undertake, they will think carefully before they incur such expenditure.

“I would hope these measures would have the effect of reducing expenditure.”

The bill will affect more than 100 public bodies, including health boards, national park authorities, Scottish Enterprise and the court service.

MSPs voted 109 to 16 for the Public Services Reform Bill after a full day of debate in the Scottish Parliament.

Finance Secretary John Swinney said: “This Bill is, of course, only one part of the Government’s public services reform agenda – it is by no means the end of the story.

“But taken together it represents a well-considered, coherent and effective package of proposals which will make a real difference to the quality, delivery and efficiency of public services in Scotland.”

The legislation will help the SNP Government cut the number of public bodies from an original 199 to 120 by next year. This includes the merger of the Deer Commission with Scottish Natural Heritage, based in Inverness.

Savings of £127million are expected by 2013, with further annual savings of £40million beyond that date.

A new arts body, Creative Scotland, was established to take over from the Scottish Arts Council and Scottish Screen.

The Bill also paves the way for new health bodies, such as Social Care and Social Work Improvement Scotland.

MSPs clashed over parts of the wide-ranging changes, including controversial measures to give ministers authority to abolish public bodies.

Mr Swinney secured support for that power by just one vote in a heated debate, with accusations across the chamber that members were misleading Parliament.

Labour MSP David Whitton said the change amounts to a “power grab” which will bypass the full scrutiny of Holyrood – a charge angrily denied by the Finance Secretary.

Mr Whitton added: “I think the fact that it was so close should actually serve as a warning to Mr Swinney to be very careful as he proceeds with whatever reform plans he has in mind.”

An attempt to save Alloa-based Waterwatch, the body which handles complaints against the water industry, also fell by one vote.

A Liberal Democrat attempt to ban bonuses for highly-paid quango bosses was defeated. The party`s finance spokesman Jeremy Purvis said later: “The First Minister, SNP and Tories chose sides today.

“They backed the quango fat cats over the interests of the people on the lowest pay.”

Tory MSP Derek Brownlee told Parliament: “The test is now for the Government to deliver on the promises they have made in relation to public sector reform.”