Private trading ‘bonus’ scheme comes under fire - Westminster Council defends public-funded Westco Ltd
Published: 29 October 2010
by TOM FOOT
COUNCIL chiefs this week strenuously defended their private trading company after concerns were raised over its bonus scheme.
Westco Ltd – set up with public funds under the Local Government Act 2003 to make profits for Westminster Council – sells “communications” to Harrow, Basildon and Leicestershire councils.
Board level documents show the firm was considering an “incentive based on 25 per cent of the profit before tax”. It read: “The payment will be made to the department and it is their decision whether to pay this as a bonus to the staff or reinvest in their service.”
Westco is registered at City Hall and includes the council’s cabinet member Danny Chalkley, director of customer services Councillor Victor Bayliss, communications director Alastair Gilchrist and manager Julia Corkey.
City Hall officials said profits from Westco would not be paid to employees as bonuses, but used for training. They said the incentive policy would now be rewritten.
Labour leader Cllr Paul Dimoldenberg said: “Opposition councillors have little knowledge of the goings-on of this company, and it’s no surprise there is confusion as to its precise activities.”
The council’s finance chief Cllr Melvyn Caplan, who is chairman of Westco, said: “We do not pay staff bonuses through Westco or at Westminster Council. The majority of any surplus generated from our trading company Westco is ploughed straight- back into council services while a portion is set aside for staff training and development.”