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

Direct Payments Monitoring Officer

Essex County Council
£27869.00 - £32787.00 per annum
Direct Payments Monitoring OfficerPermanent, Full Time£27,869 to £32,787 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £25959.00 per annum + full time equivalent
Customer Services AssistantPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Family Worker (Link Role) - 12 month FTC

Essex County Council
£33049.00 - £37698.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Fixed Term, Full Time£33,049 to £37,698 per annumLocation
Recuriter: Essex County Council

Attendance Specialist

Essex County Council
£29512.00 - £34720.00 per annum
Attendance SpecialistPermanent, Full Time£29,512 to £34,720 per annumLocation
Recuriter: Essex County Council

Fostering Panel Manager (CDC)

City Of Doncaster Council
Grade 10 - £48,227 - £52,414 (Pay award pending)
As Fostering Panel Manager, you will be responsible for the effective operation and development of the Fostering Panel Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner