Crackdown on cronyism will cut £200,000 off council’s wage bill

Councillor salaries in Glasgow will be slashed by about £200,000 as the city’s new political leadership moves to break with its recent past by attempting to draw a line under its culture of cronyism.

Several of the local authority-owned arm’s-length organisations (Aleos) are to be scrapped, while new leader Gordon Matheson’s reshuffle of the administration will see five fewer posts in his streamlined executive and four deputy posts also going. Senior councillors will not be allowed to top up their salaries by taking key posts on Aleos.

One senior source told The Herald: “Under [former leader Steven] Purcell the individual councillor was paid, not the post. If you wanted more money and Steven needed you onside, an Aleo post was found. That’s gone now. Jobs that didn’t need to be there have also been ditched.”

The main changes include the three-times leader Jean McFadden as new head of education.

Liz Cameron, chair of Culture and Sport Glasgow, is to become executive member for development and regeneration. The Herald last week reported how Cameron had made expense claims in her role with two Aleos for £2476 in flights to New York. She had also been on trips to London and Rome with Culture and Sport Glasgow, and to Paris, Norway, Amsterdam, Frankfurt and Singapore with the City Marketing Bureau.

Relative novice Matt Kerr takes charge of social work and leadership challenger Paul Rooney is running personnel. His key ally George Ryan is responsible for service reform. The last two posts are being pitched as “bridge building” after an often bitter leadership race.

Losers include Gerry Leonard, the chairman of City Building – the Aleo most embroiled in the aftermath of Purcell’s departure – who has been removed from the £20,000-a-year post. Although given the £10,000-a-year job heading the Clyde Regeneration Agency, this Aleo, along with City Markets and Glasgow Local Regeneration Agency, are the three most likely to go once a review is completed.

Any recommendations, such as closure of Aleos or mergers, will come back to the council and their companies to consider, although those which survive could see a reduction in board numbers and salaries. The new chair of City Building will also only receive £10,000.

Gilbert Davidson, chairman of the licensing committee which oversaw an absurd decision last week to ban an advert showing a pair of legs, has been demoted, Ruth Simpson, a deputy leadership candidate, loses a £10,000-a-year Aleo job with her new post also expected to be phased out. Euan McLeod, a close friend of Purcell, is axed from the executive and Hanzala Malik’s international affairs job also goes.

The shake-up comes three months after Purcell quit amid confessions of alcohol and cocaine abuse. It also follows revelations in The Herald of the intricate web of cronyism Purcell used to keep allies and foes onside and the imminent review of Glasgow’s appointments and payments structure by the Scottish Local Authority Remuneration Committee.

The new administration’s pay structure will generate immediate savings of £70,000 rising to around £200,000 when the Aleos review is complete.

Matheson said: “The new team will be working flat out to provide high-quality public services for the people of Glasgow despite the most challenging financial climate local government has faced for a generation.”

Last night an SNP source described Matheson’s line-up as weak but added: “The party generally agreed with efforts to downsize the Aleos.”

Matheson’s top team

Liz Cameron
New head of development and regeneration, she has been caught up in a row over the expenses she claimed for travelling to various countries on in her role with two Aleos.

Jean McFadden
Fronting education is a reward to the stalwart who supported the new leader during his campaign and is one of the obvious intellects in the administration.

Paul Rooney
Sideways move for leadership challenger from education to personnel, a post described as critical in the current downsizing climate.

George Ryan
A big beast from rival leadership team given the task of finding hundreds of millions of pounds via service reform and whose powers of persuasion may be required in the coming years.

Jim McNally
No nonsense veteran who has secured the job he has long craved – city treasurer.

George Redmond
Unusual choice for board and expected chair of Culture and Sport. A keen footballer and former head of health and well-being whose agenda may be more sport and less culture in the run-up to 2014.