| |
Paul Dimoldenberg |
Warning on ‘creative’ council investments
FINANCE chiefs have been warned they must learn the lesson of the Northern Rock fiasco following plans to revamp Westminster Council’s investment strategy.
The banking giant was plunged into crisis after the financial markets crashed.
Labour councillors fear plans to invest taxpayers’ money in “adventurous” and “creative” investment schemes could see millions of pounds of taxpayers’ money threatened by Town Hall greed.
Councillor Paul Dimoldenberg said: “It is unbelievable that, just days after Northern Rock almost collapsed following bad investments, the Conservatives want to put the millions of pounds of council taxpayers’ money currently earned in interest at risk by investing speculatively in get-rich-quick schemes.
“If they want to play the stock market with their City-slicker friends they should use their own money rather than risk the current level of interest payments which has already been earmarked for vital services.
“It is outrageous for the Conservatives to play with huge amounts of public money.”
In 2006/07, the council earnt £19.9 million in interest – a 4.7 per cent return.
In the five years up to 2006/07 the council earnt £82.4 million a return of 4.5 per cent.
The council wants to increase these figures to 8 per cent or more.
Deputy director of finance Mark Green said: “The objective of the investment management strategy is to obtain the highest rate of return on cash balances.
“The proposed new
strategy maintains this balance and will still be towards the lower end of the risk/return spectrum.
“The strategy recognises that it is of paramount importance that the council’s capital is preserved and it incorporates measures to ensure this.”
|
 |
|
| |
| |
