Laura Sharman 09 January 2014

Councils urged to learn from Highland power project ‘failure’

Audit Scotland has warned that councils should learn from the failings of the Highland power project, which landed the council with a £11.5m bill.

The Highlands Council set up Caithness Heat and Power as an arm’s length organisation (almo) in 2004, but had to take it back ownership in 2008 when it ran into major problems. Subsequent reports found ‘serious’ serious weaknesses in governance and accountability and failings in the way it was managed and structured.

In a new report published today, the Accounts Commission said the council had managed to reduce overall costs and reviewed its approach to almos. It said councils should learn from this project and ensure all new almos have ‘robust governance and accountability arrangements’ from the start.

Accounts Commission chair, Douglas Sinclair, said: ‘Arm’s length external organisations can be an option for delivering council services but only if the necessary safeguards are built in from the start.

‘Caithness Heat and Power was an example of how not to do this. Serious deficiencies in the governance of the project have led to significant loss of public money.

‘Highland Council has learned an expensive lesson but there are lessons for all councils to learn from this project.’

The project was originally set up as a community venture to provide wood-fired heat and hot water to homes in Wick.

Devolution and putting place first image

Devolution and putting place first

The real lesson of Andy Burnham's Makerfield success, argues Dr Jonathan Carr-West, is that place – not personality – is the key to Britain's future.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Care and Housing Support Officer

Sandwell Metropolitan Borough Council
Band D, SCP 9 -17 (£27,254 - £31,022 per annum) Pro Rata
There will be opportunities to develop with the team. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Strategic Finance Business Partner (Capital & Major Projects)

Sandwell Metropolitan Borough Council
Band J (£60,194 to £63,832)
This is an exciting opportunity to lead the financial management and oversight of the Council's Capital Programme and major projects portfolio Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Strategic Finance Business Partner (Place OR People)

Sandwell Metropolitan Borough Council
Band J (£60,194 to £63,832)
Sandwell Council’s Finance and Transformation Division is seeking an experienced Strategic Finance Business Partner (Place OR People) Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Co-ordination Support Officer

Wakefield Council
£26,824 - £28,142
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Senior Care Assistant

Wakefield Council
£21,641.72 - £23,865.83
We are a Dementia Care Home based in Knottingley, supporting vulnerable adults who have a diagnosis of Dementia. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner