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

Head of Operations & Business Development - Amphora Colchester

Essex County Council
Up to £60000.0000 per annum
Head of Operations & Business Development - Amphora Colchester Colchester AmphoraSalary
Recuriter: Essex County Council

Technical Assistant

Essex County Council
Up to £25959.0000 per annum
Technical AssistantPermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Assistant Director of Culture, Growth and Infrastructure

City of York Council
£86,537 – £95,898 plus benefits and relocation support
This is a new, pivotal and exciting opportunity for an inspiring leader to help shape York's future prosperity... West Offices York (minimum 3 days per week) / Hybrid working
Recuriter: City of York Council

Adults Social Worker - Early Help & Wellbeing (South Essex)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for a NQ England, Essex, Basildon
Recuriter: Essex County Council

Part-Time Business Support Administrator

Essex County Council
£25959.00 - £28786.00 per annum + Full Time Equivalent
Part-Time Business Support AdministratorFixed Term, Part Time£25,959 - £28,786 Per Annum (Full Time Equivalent) Location
Recuriter: Essex County Council
Linkedin Banner