Councillors have warned they do not know how many thousands of dollars Indigo Shire could lose through a decision to divest investments to banks which do not invest in fossil fuels.
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Tuesday’s 5-2 vote will make Indigo the eighth Victorian council to divest on environmental grounds.
Cr James Trenery, chair of the council’s finance committee, said he was concerned the council could not accurately calculate the risk.
“I commend that idea, but it should not be crossing the finances of the ratepayers,” he said. “It could be just a few thousand dollars here and a few thousand dollars there and if interest rates go up to six, seven, eight, nine per cent - it might be a few thousand more because these things add up and projects don’t get done.”
Cr Bernard Gaffney, who also voted against the motion, said the council’s losses could be “much more” than a few thousands dollars.
He said businesses would walk away from the region if they were not guaranteed coal and gas power.
“This sends a clear message to processors and manufacturers that Indigo Shire is not open for businesses,” he said.
“We carry debt of $4.235 million, we need the best interest rate for that money we can get.”
Cr Diane Shepperd said some banks without links to fossil fuels still had good value for investments. “A few thousands dollars per year, in terms of our future, is worth going for,” she said.
Cr Larry Goldsworthy moved the motion because he said it would be at “minimal cost”.
“We should be conscious of the impact of fossil fuels on the environment,” he said.
“Our whole community should move towards more sustainable methods of energy – council can do a little bit by advocating to our banks.”
