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

School Crossing Patrol

Durham County Council
Grade 1 £3,615 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Education Officer

Durham County Council
Grade 8 £32,597 - £36,363
The opportunity has arisen to represent education in the dynamic work of the multi-agency safeguarding hub (MASH) in Durham. We are seeking a well org Durham
Recuriter: Durham County Council

Home Support Worker

Durham County Council
£26,403 - £28,598 pro rata to hours worked (hourly rate of £13.68 rising to £14.82 per hour)
Adult Care Hawthorn House Home Support Worker - Grade 5 1 x 36 hour Permanent post We are excited to be expanding our team of Home Support Workers w Durham
Recuriter: Durham County Council

Procurement Manager

West Northamptonshire Council
£49587 - £52860
At West Northamptonshire Council, we’re looking for an experienced Procurement Manager to play a pivotal role in the delivery of high quality, value for money services. This is an exciting opportunity to join our forward-thinking central procurement an Northampton
Recuriter: West Northamptonshire Council

Revenues Manager

West Northamptonshire Council
£65098 - £71353
We’re looking for a Revenues Manager to lead our Council Tax and Business Rates service, ensuring high-quality delivery, compliance with legislation, and a strong focus on customer experience. In this role, you’ll lead the strategic direction of Coun Northampton
Recuriter: West Northamptonshire Council
Linkedin Banner