§ Mr. Bill Walkerasked the Secretary of State for Scotland if he has considered the responses of the North of Scotland hydro-electric board to the recommendations made by Arthur Young McClelland Moores and Co. in its report on the review of the board's activities; and if he will make a statement.
§ Mr. YoungerI have now considered the response of the North of Scotland Hydro-Electric Board to the recommendations of the management consultants who carried out the review of certain of the board's activities. A copy of the board's response has been placed in the Library.
The consultants were asked to examine and report on three activities of the board, making recommendations for improvements which would lead to increased efficiency in performance. The activities reviewed were the use of computers, the use of management accounting information and the operation and maintenance of hydro-electric plant. The consultants found that the board has been performing well in the areas investigated and in particular they concluded that the complex system of hydro-electric plant was well run. They made a number recommendations designed to help the board to achieve improvement in operation and administrative efficiency in the coming years.
In its response, the board has indicated its acceptance of most of the consultant's recommendations and has taken steps to implement them. In some cases, the board felt unable to accept the recommendations in their entirety and believes that new arrangements should only be introduced after careful study. The board has, however, taken steps to review its existing procedures, taking account of the consultants' recommendations.
My Department will maintain contact with the board on its progress in implementing the consultants' recommendations. I have asked the board to report to me on its progress by the end of 1984, at which time I will consider with it what further action is necessary. I know that the board will be making every effort to achieve the maximum benefits from the report in its efforts to improve efficiency, reduce costs and achieve the financial target and performance aims which have been agreed.