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.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Highways Supervisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£44982 - £54500
Job Title Highways Supervisor... Richmond
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Communication Support Worker

Durham County Council
£33,673 - £37,563 pro rata
Required – Temporary, grade 8, term time only plus 2 weeks.  8 hours per week until 31 August 2027. Are you looking or a role in school supporting th Durham
Recuriter: Durham County Council

Outreach Workers

Durham County Council
Grade 6 £29,071 - £32,046
We are looking for enthusiastic and committed practitioners to join our Family Hub Teams supporting children and Families to deliver services in comm Peterlee
Recuriter: Durham County Council

School Admin Officer

Durham County Council
£26,403 - £28,598 pro rata (pay award pending)
Required to work term time only plus 2 weeks during summer holidays. 8am-4pm. Wingate Nursery School is looking for an exceptionally organised, warm, Wingate
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 pro rata (pay award pending)
Required to work 12 hours per week, 05.30-08.00 or 15.30-18.00 Monday-Friday, Term Time plus 3 weeks to be worked during school holidays. We are seek Durham
Recuriter: Durham County Council
Linkedin Banner