§ Mrs. McCurleyasked the Secretary of State for Scotland if he has considered the progress made by the 264W South of Scotland Electricity Board and the North of Scotland Electricity Board in implementing the recommendations made by Coopers and Lybrand Associates and Arthur Young McClelland Moores & Co., on their respective reviews of the boards' activities; and if he will make a statement.
§ Mr. YoungerBoth boards reported to me on their progress at the end of 1984, in accordance with the terms of my statements of 29 July 1983, at columns 610–11, and 26 October 1983, at column 146. A copy of each board's final response to the consultants' recommendations has been placed in the Library.
Following my consideration of the South of Scotland Electricity Board's interim response to the Coopers and Lybrand audit, my Department has had further discussions with the board on a number of recommendations which the board felt unable to accept in their entirety. Amongst these were the extension of the role of the board's audit committee to embrace efficiency reviews and the best means of presenting alternatives strategies in corporate planning. The board has now established an efficiency review committee, involving non-executive board members, to undertake the role suggested for the audit committee in relation to efficiency and value for money reviews. I am at present considering the committee's first report which was submitted at the end of 1984. On presenting information on alternative strategies, the board has agreed to prepare papers each year reviewing the strategic options open to it. The SSEB has also made progress on its proposals for fuel purchases which were supported by Coopers and Lybrand in that it has reached a new trading agreement with the British Nuclear Fuels Limited on the supply of nuclear fuel and is negotiating new arrangements for coal purchasing from the National Coal Board.
The North of Scotland Hydro-Electric Board has accepted and is implementing all the recommendations relating to computers and the operation and maintenance of hydro-electric plant. It has also accepted in principle almost all the recommendations relating to management accounting and, following detailed examination by working parties, is incorporating them in new systems and procedures. Following discussions with my Department, the NSHEB, too, has established an efficiency review committee.
I am satisfied with both boards' progress in implementing the consultants' recommendation and their efforts to achieve maximum benefits from the reports.
Aspects of each of the boards' operations are to be referred to the Monopolies and Mergers Commission during 1985 and the terms of reference will take account of the efficiency audits.