This item was published during the term of a previous administration that ended in April 2007
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Western Isles responsibilities restored
12/09/2003
The intervention by the Executive because of past
failures in the buildings maintenance and roads maintenance
activities of Comhairle nan Eilean Siar is no longer
required, it was announced today.
Deputy Finance and Public Services Minister Tavish Scott
said:
"We are delighted that the council has complied with its
recovery plan and has achieved what we judge to be a
sustainable reversal of the previous failures in its
Highway Maintenance and Building Maintenance DLOs.
"Both the workforce and councillors have worked together
to put things right. We congratulate them."
Until April 2003, certain local authority activities
were subject to an obligation to meet a statutory target of
annual break-even in their accounts. Section 19 of the
Local Government Planning and Land Act 1980 gave Ministers
powers to intervene when any direct labour organisation (as
defined by the Act) failed to meet statutory targets. S.19A
enabled the government to issue a formal Notice requesting
explanations of such failures. S.19B enabled the Government
to issue a Direction demanding such action as they deemed
necessary, including closure, following their consideration
of the response to the S.19A Notice.
Comhairle nan Eilean Siar was issued a S19B Direction in
November 2001 by the then Minister for Finance and Local
Government Angus MacKay following deficits in its Highway
Maintenance and Building Maintenance DLOs.
Comhairle nan Eilean Siar has now fully complied with
the conditions set by the Directions, and has provided
satisfactory evidence that these operations are again comp
lying with statutory obligations and are likely to continue
to do so.
S19B intervention powers were repealed on 1 April 2003
in respect of any deficits arising after that date. They
can, therefore, continue to be used by Ministers this year.
In the future, steps taken to identify the causes of
business failure in any Scottish local authority and make
recommendations for recovery will be a matter for the
Accounts Commission to take in the first instance, except
where it is clear that immediate action by Ministers is
reasonable to protect the public interest from substantial
harm.