Glen Innes Severn Council is to consider changing its policy so it chooses green investments if they give as a good a return or better than ones involving coal and oil.
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The recommendation is that the policy be changed so that “preference will be given to investing funds with financial institutions that do not invest in, or finance, the fossil fuel industry.”
But it adds that it would only put its money into these “Ecologically Sustinable Development” investments if the “rate of interest is equivalent to other similar investments that may be on offer to Council at the time of investment”.
The council has about $17 million to invest and most of it goes to banks in return for interest (usually around 2.5 per cent).
In other words, the proposal is basically that the council would not invest with banks that were heavy into oil and coal companies if “greener” banks offered the same return.
Throughout its decisions, there is a weighing of risk against return – it wouldn’t put its money – rate-payers’ money – into high risk, high return investments.
It’s not clear if the proposal will go through. Deputy Mayor Carol Sparks who is a Green wouldn’t comment.
Green party activist in the town, Mercurius Goldstein, said: “Greens policies support strategies to divest from fossil fuel industries, as is now increasingly the case among a range of public and private organisations, such as superannuation funds, banks, financial institutions, and unions.
Some in the council view the proposal as a compromise between those who would ban the investment in coal and oil and those who would only go for the best return, regardless of the environmental credentials of the investment.
Mayor Steve Toms said: “I don’t have a problem with it because we aren’t going to sacrifice returns.”
The change is to be debated on Thursday night with a recommendation to accept.
