§ Mrs. McCurleyasked the Secretary of State for Scotland if he has considered the response of the South of Scotland Electricity Board to the recommendations contained in the efficiency audit of that board's activities by Cooper and Lybrand Associates; and if he will make a statement.
§ Mr. YoungerI have now considered the response of the South of Scotland Electricity Board to the efficiency audit by the management consulting firm of Cooper and Lybrand Associates. A copy of the board's response has been placed in the Library.
The consultants were asked to consider whether SSEB could economically improve its performance in a number of key areas: namely, management information, control of the generating system, fuel purchasing, and the planning and appraisal of new investment. The consultants overall conclusion was that SSEB's activities were generally well organised and performed to a good standard. Nevertheless, they make a number of recommendations aimed at further improving the board's performance.
609WIn its response the SSEB has indicated its acceptance of most of these recommendations and has already taken steps to implement many of them. In the case of others, the board is re-examining its existing procedures with a view to incorporating the consultants' suggestions where appropriate.
Some of the recommendations touch upon the board's relationship with other public bodies, including the National Coal Board, British Nuclear Fuels Ltd., the Central Electricity Generating Board and British Rail. In particular, the report referred to the arrangements for the purchase of coal and the supply of nuclear fuel from NCB and BNFL respectively. These arrangements are urrently the subject of discussion between SSEB and these industries. SSEB is also discussing with CEGB the scope for improving arrangements for power transfer between the two boards and the Government will wish to be satisified that national generating capacity is being used as efficiently as possible.
In general the board has responded positively to the consultants recommendations and I know that it is its intention to secure the maximum benefit from the considerable amount of work which went into compiling the efficiency audit report. Nevertheless, there are a number of recommendations which the board felt unable to accept in their entirety. My Department will be having further discussions with the board on these and other topics arising from the report.
Since the report and the board's response were reduced, I have agreed a financial target and performance aims for SSEB, together with a set of policy objectives for the
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Local authority No. of sheltered units at 31.3.82 Population of pensionable age* (thousand) Projected population (1979 based) Estimate at 30.6.82 1982 1983 1984 1985 1986 1987 1988 1989 1990 Berwickshire 97 4.1 3.8 3.8 3.8 3.8 3.7 3.7 3.7 3.6 3.6 Ettrick and Lauderdale 87 7.0 6.9 6.9 6.9 6.9 7.0 7.0 7.0 7.0 6.9 Roxburgh 67 7.4 7.2 7.1 7.1 7.1 7.1 7.0 6.9 6.9 6.8 Tweedale 42 3.2 3.0 2.9 2.9 2.9 2.8 2.8 2.8 2.7 2.7 Clackmannan 147 7.1 6.9 6.9 7.0 7.1 7.1 7.2 7.2 7.2 7.3 Falkirk 147 23.2 23.0 23.1 23.2 23.5 23.8 24.0 24.1 24.2 24.4 Stirling 369 13.1 12.5 12.4 12.4 12.5 12.6 12.6 12.6 12.6 12.6 Annendale and Eskdale 51 6.9 6.6 6.6 6.7 6.8 6.8 6.9 7.0 7.0 7.1 Nithsdale 46 10.1 9.8 9.8 9.8 9.9 10.0 10.1 10.1 10.3 10.3 Stewartry 41 5.1 4.5 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 Wigtown 5 5.5 5.2 5.2 5.1 5.2 5.2 5.2 5.2 5.2 5.2 Dunfermline 171 19.2 19.5 19.6 19.8 20.1 20.4 20.5 20.7 20.8 20.9 Kirkcaldy 171 25.0 24.2 24.4 24.5 24.9 25.2 25.4 25.6 25.8 25.9 North East Fife 202 13.9 13.1 13.0 12.9 12.9 12.8 12.7 12.7 12.6 12.5 City of Aberdeen 777 37.3 38.1 38.0 37.9 38.1 38.2 38.2 38.1 38.0 38.0 Banff and Buchan 195 13.5 12.9 12.9 12.8 12.9 12.9 12.9 12.9 12.9 12.8 Gordon 150 9.2 9.2 9.2 9.2 9.3 9.3 9.4 9.4 9.5 9.6 Kincardine and Deeside 118 7.1 6.7 6.7 6.6 6.6 6.6 6.6 6.6 6.6 6.6 Moray 177 13.8 12.2 12.1 11.9 11.9 11.9 11.9 11.9 11.9 11.8 Badenoch and Strathspey 41 1.9 1.7 1.7 1.6 1.6 1.6 1.6 1.6 1.6 1.6 Caithness 107 4.3 3.9 3.9 3.9 3.9 4.0 4.0 4.0 4.0 4.0 Inverness 129 8.9 8.5 8.5 8.5 8.6 8.7 8.8 8.9 8.9 9.0 Lochaber 10 2.9 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.1 Nairn 52 1.9 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.6 Ross and Cromarty 90 7.1 6.3 6.3 6.2 6.3 6.3 6.3 6.4 6.4 6.4 Skye and Lochalsh 24 2.3 2.0 1.9 1.9 1.9 1.8 1.8 1.8 1.7 1.7 Sutherland 24 2.9 2.8 2.8 2.7 2.7 2.7 2.7 2.6 2.6 2.6 East Lothian 122 15.2 14.1 14.1 14.1 14.2 14.3 14.3 14.3 14.2 14.2 City of Edinburgh 1,336 86.1 87.8 87.2 86.7 86.6 86.6 86.3 85.9 85.5 85.0 Midlothian 22 11.1 11.0 11.1 11.3 11.5 11.7 11.9 12.1 12.1 12.3 West Lothian 206 16.6 15.5 15.6 15.8 16.1 16.4 16.6 16.9 17.1 17.3 board which I announced earlier this year. All of these reflect the importance which both the board and I place on improving the performance and efficiency of the electricity supply industry in Scotland. I know the board will continue to make every effort to implement the consultants recommendations and improve the performance wherever possible. I have therefore asked SSEB to report to me on the progress made in implementing these recommendations before the end of 1984 at which time I will consider with the board what further action, if any, is necessary.