Boss issues racist remark apology

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A chief executive at one of the UK's biggest insurance companies has apologised for using a racist phrase.

Trevor Matthews, head of Standard Life's life and pensions business, made the comment at a presentation at its Edinburgh headquarters on Monday.

Mr Matthews has posted an apology on the Standard Life internal website in place of his usual weekly message.

He said the comment was a terrible mistake and was a phrase common in his childhood which slipped out.

Mr Matthews made the remark while he was setting out the firm's employee pension proposals.

He was asked why plans to close the final salary scheme had been buried on page 126 of last year's prospectus on demutualisation.

As soon as the words came from my lips I realised that I had made a serious mistake by using a colloquialism that is not in any way acceptable today Trevor MatthewsStandard Life

He replied using a phrase which contained a word generally accepted to be highly offensive.

A formal complaint is understood to have been made by a member of staff.

The Australian executive told staff: "I would like to apologise to you for using an inappropriate phrase during my presentation at the first pensions briefing for SLAL (Standard Life Assurance Limited) staff after lunch on Monday this week.

"I deeply regret saying what I did - it is not in any way a reflection of what I think.

"As soon as the words came from my lips I realised that I had made a serious mistake by using a colloquialism that is not in any way acceptable today."

He added that he was against all forms of discrimination and promised never to use an expression of that nature again.

'Absolutely scandalous'

Mr Matthews joined the company in 2004 and has been tipped as a favourite to succeed Sandy Crombie as group chief executive.

The company has opened a 90-day consultation with staff on the pension proposals which are opposed by the union Amicus.

Willie Gibson, regional officer at Amicus, said: "This is absolutely scandalous.

"Remarks of this nature are not welcome in any walk of life, let alone at presentations of a flagship Scottish insurance company."