The Cole report into local council investments released today acknowledges the Iemma Government’s investment guidelines are inadequate and contributed to the millions lost in ratepayer funds since the subprime mortgage crisis, Shadow Minister for Finance Mike Baird and Shadow Minister for Local Government Chris Hartcher said.

“There are many sensible recommendations in the Cole report, several of which the NSW Liberal/Nationals called for more than seven months ago, however it is disappointing the time the Iemma Government has taken to act on this issue,” said Mr Baird.

“There is no doubt the Iemma Government’s Ministerial Investment Order needs tightening, however we would also strongly encourage investment portfolios to be managed centrally.

“It is unreasonable to expect council staff and councillors to assess credit ratings, maturity profiles and asset classes.

“The Treasurer has conveniently tried to shed responsibility from the State Government in directing councils to take every formal advice required to make investment decisions. It is sheer buck passing.

“The Treasurer and the Minister for Local Government are the architects of the guidelines and are ultimately responsible. They must admit their investment policy was wrong.

“Where has the Department of Local Government been? The Department receives $91.3 million per year – their job is to protect the consumer, in this case the ratepayer,” he said.

Mr Hartcher said the Department has been asleep at the wheel. The findings in the Cole report are too late for those ratepayers whose councils have already lost millions.

“The Government has been silent on who is responsible for the mark-to-market losses of approximately $320 million suffered by councils across NSW including Gosford, Wingecarribee, Newcastle and Parkes.

“We call on the Iemma Government to take responsibility for the millions lost in ratepayer funds and to adopt the Coalition’s recommendations made more than seven months ago,” Mr Hartcher said.

MEDIA: Lisa Harrington - 0406 726 880

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