Comhairle nan Eilean Siar

PRESS RELEASE

25 May 2001

For Use: Immediately

Action Plan To Be Drawn Up For DSO Deficit

A Comhairle Working Party is to develop a recovery plan in the light of an estimated £667k deficit in the Roads and Building Maintenance 2000/2001 accounts of Comhairle nan Eilean Siar's DLO/DSO.

In a letter to all Councillors reporting the findings of an initial review, the Chief Executive of the Comhairle, Mr. Bill Howat, says: "It should be noted that services to the people of the islands have not been adversely affected. However, there are issues to be addressed given that it is a legal requirement for the DLO/DSO to break even in their accounts."

The Director of Finance, Mr. Robert Bennie, the lead officer in the Working Party, has completed his review of the Technical Services DLO/DSO financial position. He has estimated that the combined deficit within the DLO/DSO account for the Roads and Building Maintenance operation for 2000/2001 is £667k, subject to external audit.

The Chairman of the Working Party, Cllr. Angus Campbell, said: "We have been aware for some time that there was a likely deficit in these areas of the DLO/DSO accounts but we now know the scale of the situation. That enables us to take steps to remedy the position for the future and we have already taken initial measures aimed at establishing a secure financial position within the DLO/DSO."

The Working Party has outlined a series of action points. An external expert is to be brought in to assess performance, contract terms and options for the future. The estimated deficit is being reported to the Scottish Executive and there will be a review of management and working practices and, in the longer term, the organisation within the DLO/DSO and the Technical Services Department.

The Convener of the Comhairle, Mr. Alex MacDonald, said: "The DLO/DSO provides a wide range of high quality services to the people of the Western Isles and the Comhairle is conscious of its importance in employment terms to the economy of the islands. We are determined therefore, to deal with this matter in a measured and professional manner to ensure that the DLO/DSO is returned to a sound financial footing in the current financial year. We will do this in an open and transparent way, involving employees and the appropriate trade unions"

A meeting was held today with Trades Unions to discuss the situation.

Ends

Issued by Nigel Scott
Communications Officer