Byron Shire Council has been freed from a set of state government-imposed rules that had effectively forced it to invest with financial institutions linked to fossil fuels.
Council has been bound by the rules since mid-2019, when it took out the first of four loans with the NSW Treasury Corporation (TCorp) totalling $27 million.
This included a requirement that at least 70 per cent of Council’s investment portfolio be invested in institutions with a credit rating of A+ or higher.
Most financial institutions with credit ratings of A- and above have links to fossil fuels through lending, or other means.
Credit ratings are predominantly provided by three main international rating agencies, namely; Standard & Poor’s (S&P), Moody’s Investor Services (Moody’s), and Fitch IBCA (Fitch), although there are others.
Council’s Acting Director of Corporate and Community Services, James Brickley said in the agenda to next week’s Council meeting, ‘The NSW Treasury Corporation loan condition restrictions has resulted in Council being required to invest funds with financial institutions with links to fossil fuels contrary to Council’s policy objective,’
In response to multiple requests from Council, TCorp has now agreed to lift its restrictions on Council investments.
The matter will come before next week’s Council meeting for final adoption.
‘NSW Treasury Corporation are now allowing Council to rely on its Investment Policy for the basis of investments,’ Mr Brickley said.
‘This is a very positive change, and will see Council over time improve the proportion of its investment portfolio not linked to financial institutions supporting fossil fuels and to pursue environmental and socially responsible investment opportunities as they come to market or invest with financial institutions that do not have links to fossil fuels.’
GFC rules
However, Byron Council will remain bound by more general restrictions on investments that apply to Councils across NSW.
These rules, imposed back in 2011 following the Global Financial Crisis, prevent Councils from investing overseas, in shares or any managed funds except those offered by TCorp.
A number of Council’s across the state are lobbying for these restrictions to be lifted as well.
Byron Council wants to become a fossil fuel producer by fermenting the Shires curb side collected green waste, proactively grown ‘coppice’ farm green waste, and surounding Councils green waste, to produce Methane, and then to burn the Methane in a greenhouse gas spewing, air particulate polluting, gas fired electricity plant, farcically called a nice sounding ‘Bioenergy’ Plant. Perhaps we should stop ‘investing’ in Byron Council.