Convincing ministers to rethink NSW Treasury Corporation restrictions on council investments in small banks will be the goal of Greater Hume Council at the Local Government NSW Annual Conference being held in Albury next week.
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A motion has been put forward to the conference that relevant government bodies should represent councils in opposing the changes, and that councils applying to TCorp for loan funds “not be subjected to financial covenants that severely restrict investments with unrated small banks”.
Greater Hume is concerned they will have to significantly reduce those investments, and be forced to invest more with the big four banks “even though the major banks have progressively and systematically reduced their presence in, and support for, regional communities over many years”.
“It is ironic that rural councils such as Greater Hume which have adopted investment practices that comply with the requirements … by supporting smaller institutions that have a presence in rural communities, are potentially going to be penalised by being denied access to lower cost loans through TCorp,” the motion reads.
“It would appear that policy decisions are being made by NSW Government agencies that directly impact on local councils without any consultation with the sector or those councils impacted.”
Albury Council has also raised concerns about the advice from TCorp that councils reduce investment exposure to WAW and Hume Bank.
Albury mayor Kevin Mack said council had written to TCorp and the Office of Local Government (OLG) expressing concerns over TCorp’s position.
“Both agencies have written back to say the situation remains unchanged,” he said.
“Council has since written to the NSW Minister for Local Government, calling for TCorp not to enforce loan covenants while the OLG undertakes a review of investment policy guidelines in partnership with councils.”
Greater Hume has also put forward a motion requesting lobbying for additional recurrent roads funding, and Albury has suggested the Murray Darling Basin Authority should take into account how river levels impact on Basin communities during peak tourism periods.
The three-day local government conference will attract hundreds of delegates to Albury and will be opened on Sunday afternoon.
