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

Creative Producer

Mansfield District Council
£34,434 - £39,152 per annum (pay award pending)
The Creative Producer will lead the Development Team Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Apprentice (Income Team)

Ashfield District Council
£10.85 per hour for the first 12 months then NLW
Ashfield District Council are looking an enthusiastic individual to join our busy Income Team Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Senior Engineer - Technical Enquiry Management (Traffic Management and Safety)

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take a leading role in managing technical enquiries and delivering safer, more efficient highways? Matlock, Derbyshire
Recuriter: Derbyshire County Council

Service Manager - Property and Investment

Ashfield District Council
£55,620 - £57,869 per annum (pay award pending)
As Service Manager – Property and Investment, you will be the Council’s professional lead on for commercial property and investment. Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Electrician (CDC)

City Of Doncaster Council
Grade 8, £34,434 - £38,221 (pay award pending)
We also carry out reactive electrical repairs, which includes fault finding of commercial/industrial and domestic properties Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner