Laura Sharman Thursday, January 9, 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

Lunchtime Supervisor

Durham County Council
£24,796 pro rata
Permanent Contract Part Time (6hrs 15mins hours per week) Term Time Only Required to start as soon as possible   Chester le St CE Primary School seeks Durham
Recuriter: Durham County Council

Finance Assistant

Durham County Council
£25,583 to £26,824 p.a. (Grade 4) pay award pending
A vacancy has arisen for a permanent, full time Finance Assistant to provide responsive, efficient and effective administrative support to Transaction Spennymoor
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 (Pro Rata)
Term time plus 15 days – Part Time - 10 - 15 hours per week (between the hours of 3.00pm -  6.00pm) Hours may be subject to change. Required to start Consett
Recuriter: Durham County Council

Headteacher

Durham County Council
£67,898- £78,702
Group 2 (L12-L18) Required for 1 January 2027 The Governors seek to appoint a committed, experienced and enthusiastic teacher with senior management e Durham
Recuriter: Durham County Council

Highways Construction Manager

Durham County Council
£47,181 - £51,356
Highways Services are looking for a Highways Construction Manager to join their team   WHAT IS INVOLVED? You will assist in ensuring the timely comple Durham
Recuriter: Durham County Council
Linkedin Banner