Cycle News Friday, October 08, 2004

Council gearing up to kit out staff

Key points
• Discounts of up to 40% for staff
• Scheme possible due to tax benefit
• Staff pay cut to recoup council cash

Key quote
"Staff would have to commute to work on the bikes rather than using them purely for leisure. The tax benefits are all part of a government plan to encourage more people to cycle to work" - Alan Nestor, Edinburgh Bicycle Co-operative

Story in full EDINBURGH City Council is spending £2.1 million on providing its staff with cheap bikes and computers.

The schemes take advantage of a tax benefit which allows employers to provide bicycles and computers to workers at a discount of up to 40 per cent.

Both projects will be funded for three years at a cost of £700,000 per annum and will start next spring.

The council is expected to recoup its costs as staff will take a cut in their wages over 36 months to pay for their purchases.

The Edinburgh Bicycle Co- operative has already been selected as the initiative’s preferred bidder for the scheme.

The firm hopes to sell at least 800 bikes to workers.

Alan Nestor, the company’s sales and marketing manager, said: "Other similar schemes have seen take-up levels of between three and five per cent and the council has 16,000 employees who are eligible.

"Five per cent would be a minimum target, but, as a retailer, I would like to sell 16,000 if we can.

"Staff would have to commute to work on the bikes rather than using them purely for leisure. The tax benefits are all part of a government plan to encourage more people to cycle to work.

"We have had discussions with the council about working with them and we hope we will be chosen as the supplier."

Mr Nestor added that the firm would offer staff a range of different models.

City transport leader Andrew Burns said he hoped staff would take advantage of the special deal.

He said: "Many other public sector employers, including Lothian and Borders Police, operate a Bike to Work scheme and it is our intention to offer a similar scheme to council staff."

In April, Lothian and Borders Police became the first force in the UK to offer bikes to its staff. It was deemed "very successful" after a total of 85 employees signed up.

Under the Home Computing Scheme, three different types of PCs and two laptops will be available to staff. Fujitsu Siemens has been selected to supply the computers after the contract was put out to tender.

City modernising government leader Donald Wilson said: "I very much approve of the linking of home computers and bicycles as two important components of a Smart City."

The Smart City vision was set out by the Scottish Executive with the aim of modernising public services. Andrew Unsworth, the council’s head of e-government, put forward the proposals to the council’s executive.

He said: "The schemes offer financial advantages to employees and fit in with the council’s transport agenda and promotion of physical fitness, as well as it’s long term aims of sustainable development and modernising government."

Mr Unsworth added that there would be an investigation into the cheapest method of funding to ensure a "cash neutral position" for the local authority.

He said: "As salary-sacrifice schemes attract tax benefits, employees will not have the automatic right to revert their original gross pay during the 36-month period. Early leavers of the scheme, eg due to dismissal or retirement, will be required to pay any outstanding payments remaining on their agreement.

"As the requirement will not be used within council premises, employees will be required to take out adequate all-risks insurance, including consequential damage, to cover the equipment for the term of the agreement."
(Source: http://news.scotsman.com/politics.cfm?id=1168362004)