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

Pre-School/Nursery Assistant

Essex County Council
Up to £13.00 per hour
Pre-School/Nursery AssistantPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

Preschool Nursery Assistant - Level 3 Qualified

Essex County Council
Up to £13.00 per hour
Preschool Nursery Assistant - Level 3 QualifiedPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

Trading Standards Project Officer - Tobacco and Vapes

Essex County Council
£26601.0000 - £31295.0000 per annum
Trading Standards Project Officer - Tobacco and VapesFixed Term, Full Time£26,601 to £31,295 per annumLocation
Recuriter: Essex County Council

Social Care Worker - WMF2272e

Westmorland and Furness Council
£34,434 - £35,412
We have an exciting opportunity, for a passionate, enthusiastic person Cumbria / Various
Recuriter: Westmorland and Furness Council

Apprenticeships & Intermediate Labour Market Coordinator

The Royal Borough of Kensington & Chelsea Council
Negotiable
Create real opportunities for local people and help shape a fairer future. As an Apprenticeships and Intermediate Labour Market Coordinator, you'll wo England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner