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.

SIGN UP
For your free daily news bulletin
Highways jobs

Adults Social Worker - South Essex

Essex County Council
£37185 - £50081 per annum
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in South England, Essex, Basildon
Recuriter: Essex County Council

Service Manager, Children’s Homes Service

Durham County Council
Grade 16 £56,554 - £60,680 Potential earnings up to £63,180 per annum.
Service Manager, Children’s Homes Service   Lead with Purpose, Inspire Change and Transform Lives.   Salary
Recuriter: Durham County Council

Systems Implementation Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
Are you ready to lead the rollout of a brand-new ICT system for Children’s Homes in County Durham?   We’re seeking a proactive Systems Implementation Spennymoor
Recuriter: Durham County Council

Registered Homes Manager

Durham County Council
Grade 14 £50,269 - £54,495 plus £2,500 recruitment/retention allowance and £3,500 market supplement. The salary with additional payments equate to an earning potential per annum of £60,495 at the top of the grade.
Registered Homes Manager, Children’s Homes Service   Lead with Purpose, Inspire Change and Transform Lives.   Salary
Recuriter: Durham County Council

Building Surveyor

Durham County Council
Career Grade 9 to 12 - G9 £35,412 - £39,152 / G10 £38,220 - £41,771 / G11 £40,777 - £45,091 / G12 £44,075 - £48,226
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recuriter: Durham County Council
Linkedin Banner