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

Ugobus Driver - Chelmsford

Essex County Council
Up to £25959.0000 per annum
Ugobus Driver - ChelmsfordPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Transport Coordinator

Essex County Council
£37614.0000 - £44251.0000 per annum
Transport CoordinatorPermanent, Full Time£37,614 to £44,251 per annumLocation
Recuriter: Essex County Council

Team Administrator

Gloucestershire County Council
£25,185 - £25 989
Are you looking to join a friendly and supportive administration team at Gloucestershire County Council? Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council

Administration Officer

Durham County Council
Grade 5 £26,403 - £28,598 (Pay award pending)
Are you an organised and proactive administrator who is passionate about supporting learners to achieve their potential? Join DurhamLearn and become Durham
Recuriter: Durham County Council

Highways Trainer (2 Posts)

Derbyshire County Council
£35,422 - £38,730
Are you passionate about developing people and ensuring compliance across a complex operational service? Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner