Lessons Learned From CHaP Project

11th March 2011

The Highland Council has learned lessons from the Caithness Heat and Power Project in Wick, and introduced measures to ensure the corporate failings are not repeated in any future project.

A total of 39 actions have been put in place in a response to an internal audit of the Wick-based enterprise and these actions have been acknowledged by external audit and the Accounts Commission.

The Council also believes that strong political and managerial leadership, recognised in recent external audits, is in place to prevent similar shortcomings in governance and financial stewardship of a project.

At a special council meeting to consider the findings of the Accounts Commission in respect of the Caithness Heat and Power project, the Council accepted the failings of the project in the early stages of the business, between 2004-2007.

Council Leader Councillor Michael Foxley said: "It is critical that the Council learns lessons from this project. There were real failings but when the extent of these came to light, the Council acted promptly, openly and effectively to ensure that these were highlighted and addressed. The Council has liaised closely and fully with Audit Scotland and continues to do so in taking the project forward.

"Since 2007 the Council has changed significantly. External audits have found there is a strong political leadership within the Council, with an Administration that works consistently and effectively and a strong Opposition, which closely scrutinises proposals. These audits have also recognised the strong managerial leadership that now exists within the Council. This combination should avoid a similar position developing again."

The Council noted that tenants served by ChaP had suffered no detriment, with heat and power maintained at all times.

The Council agreed:

(i) To note the Controller of Audit's report, of 9th February 2011, on the Caithness Heat and Power project, prepared under section 102 of the Local Government (Scotland) Act 1973.

(ii) To note the Accounts Commission's response to the Controller of Audit's report.

(iii) That the actions taken by the Council are sufficient to address the specific issues raised with regard to this project and are sufficient to ensure that no similar failings occur within future projects. This agreement should be confirmed to Audit Scotland and the Accounts Commission.

(iv) That Audit Scotland and the Accounts Commission will be kept fully informed of the progress of the project.

(v) That the Head of Internal Audit & Risk Management will undertake a follow up review in order to ensure that all actions have been implemented and are effective and agree that this report is presented to the Council.

(vi) To acknowledge and support the important role of its statutory officers.

The Council's response will be relayed to the Accounts Commission and published in the local media and on the Council's web site: www.highland.gov.uk

 

Related Businesses

 

Related Articles

11/11/2026 : Local Authority

High Life Highland Shows What Can Be Achieved: £43 Million in Council Savings While Expanding Services Across the Highlands

Highland Council is facing continuing financial pressures, with difficult decisions about services, staffing, facilities and future investment.  Yet one organisation delivering a substantial range of council services appears to have found a way of expanding its reach while reducing its reliance on council funding.  

11/11/2026 : Local Authority

Highland Education Budget: A Modest Overspend Hides Some Much Bigger Financial Problems

Special schools, pressure on individual school budgets, delayed savings and growing costs of additional support raise questions about how sustainable Highland Council's education finances really are.   At first glance, Highland Council's latest Education and Learning budget monitoring report might not appear particularly alarming.  

11/11/2026 : Local Authority

 
Rewiring Government: Could Scotland Be Heading for Its Biggest Public Sector Shake-Up in Generations?

Dame Antonia Romeo, the UK's Cabinet Secretary, has delivered a speech setting out plans to fundamentally change the way government operates.  Her message is that traditional government structures, departmental boundaries and bureaucratic procedures are no longer suitable for the challenges facing the country.  

10/11/2026 : Local Authority

Inverness and Highland City-Region Deal delivers £412.98 million investment across the region

The Inverness and Highland City-Region Deal has delivered public and private investment across the Highlands totalling £412.98 million, according to its 2025/26 Annual Report, supporting major investments in housing, tourism, innovation, and infrastructure.   Highlights from the 2025/26 Annual Report include the start of the Corran Ferry Infrastructure Improvement project, the completion of 234 affordable homes across Highland communities, and the opening of The Inverness Castle Experience, which has welcomed more than 107,000 paying visitors since opening.  

9/11/2026 : Local Authority

Wind Farms, Councillors and Freedom of Speech: Is Scotland's Planning System Silencing Local Dissent?

The growing number of wind farm developments across the Highlands has created an increasingly difficult question for local democracy.  How far can elected councillors go in expressing concerns about renewable energy developments before they risk being accused of bias and excluded from decisions affecting their own communities? That question has now been brought into sharper focus by Highland councillor Matthew Reiss, who has approached the Ethical Standards Commissioner seeking clear guidance on councillors' conduct when publicly expressing views about renewable energy.  

7/11/2026 : Local Authority

Are Chromebooks Taking Over Our Classrooms? Highland Schools Face Questions About Digital Learning

The use of Chromebooks, laptops and other digital devices in schools was once widely regarded as an important step towards modernising education.  Giving every pupil access to technology promised to improve learning, widen access to information and prepare young people for a world increasingly dependent on digital skills.  

6/11/2026 : Local Authority

Secret HQ Move: Is Highland Council Chasing Savings or Just Shuffling the Deck?

A storm is brewing behind closed doors at Glenurquhart Road.  Recent private discussions have revealed plans for Highland Council to potentially abandon its historic headquarters and relocate to Great Glen House, the current £13 million base of NatureScot.  

5/11/2026 : Local Authority

Committee to consider 1 April 2027 start date for Short-Term Let Control Areas

Members of The Highland Council’s Economy and Infrastructure Committee will be asked to agree that Short Term Let Control Areas (STLCAs) for Inverness City and Highland Rural come into effect from 1 April 2027.   The recommendation to the Committee follows the decision by Scottish Government Ministers on 26 October 2026 to approve designation of the STLCAs, which are an important tool to manage future loss of housing stock, support sustainable communities and balance housing needs with the visitor economy.  Chair of the Council’s Economy and Infrastructure Committee, Cllr Ken Gowans, said: “Following Scottish Government approval, the Council can now move forward with implementing these STLCAs, which will help us strike a better balance between supporting tourism growth and protecting much-needed housing for local people.  

6/11/2026 : Local Authority

Key decisions made to improve Highland Bereavement Services

Members of the Communities and Place Committee have made key decisions that will improve affordability and choice within Highland bereavement services at Inverness Crematorium; and introduce stronger governance and transparency for charitable funding applications through the crematorium metal recycling scheme.   Members also approved the adoption of a standardised burial management plan across Highland which will ensure compliance with new national burial management legislation.  

6/11/2026 : Local Authority

Council-owned D&E Coaches delivers £700k profit while supporting Highland transport

D&E Coaches has recorded a £700,000 profit after tax in its first full year under Highland Council ownership.   The Council purchased the coach and bus operator in March 2025 to support the ongoing provision of sustainable and reliable transport services across the Highlands.