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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Ugobus Driver

Essex County Council
Up to £25959.00 per annum
Ugobus DriverPermanent, Part Time£25,959 per annum full time equivalent Location
Recuriter: Essex County Council

Neighbourhood Highway Group Manager

Devon County Council
£74,825 per annum
Devon County Council (DCC) is looking for an inspirational individual to lead and direct the Neighbourhood Highway Group. Devon
Recuriter: Devon County Council

Neighbourhood Highway Manager

Devon County Council
£60,234 per annum
The successful applicant will bring clarity of vision, a strong professional commitment to continuous improvement, and the ability to empower others. Devon
Recuriter: Devon County Council

Senior Technical Officer - Community Projects

Kirklees Metropolitan Council
£29,540 - £37,280
Do you have an interest in highway safety and have some knowledge of Traffic and Highway Law? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner