Small businesses in Indigo Shire will be able to borrow money for energy saving initiatives by taking out loans through their council rates.
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The Environmental Upgrade Finance program was passed at this week's council meeting with a 4-2 majority, but not before heated debate about the possible risks.
While the council would collect the fees, the loan would be facilitated through the Sustainable Australia Fund, which has the backing of the Victorian government.
Cr Jenny O'Connor said a small amount of work from the council could have a big impact for businesses.
"It will support businesses, many of whom are wanting to improve their energy costs by putting in, for example, solar panels or renewable energy upgrades," she said.
Cr Diane Shepheard said the fund was an "obvious choice" after businesses approached the council looking for help in getting loans to help with measures to save on their energy bills.
"The fact that we have it here for businesses means they have the opportunity to get longer loan terms, up to 15 years on a fixed rate, which increases cash flow into their business," she said.
"It just seems complete sense for us to support this."
She said because it was an individual choice for businesses, there was no risk to the council.
But in voting against the energy fund, mayor Bernard Gaffney and Cr James Trenery disagreed. Cr Gaffney questioned why the council would collect money for a private business.
Cr Trenery said the council's reputation would be at risk if someone disagreed with the Sustainable Australia Fund charges and refused to pay the fee on their rates.
"If someone pays all their rates for their property and doesn't pay this, they can end up in court from Indigo Shire Council," he said.
"I don't think there's a benefit to this community that outweighs the downside."
He also questioned why businesses' money should go to company in Melbourne. rather than a local bank.
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