Does local government need state approval for their investments?
Investments must be in accordance with the Minister for Local Government investment order. Byron Shire Council’s investments conform to the following: • Council’s Investment Policy • Section 625 of the Local Government Act 1993 (as amended) • the Minister’s Investment Order which existed at the time of the investment • clause 212 of the Local Government (General) Regulations 2005 • Third Party Investment requirements of the Department Local Government Circular 06-70. None of Council’s CDO investments had a rating lower than AA at the time the capital was invested. Therefore they were rated highly at the time of investment. The current economic crisis is a global event and like many individuals and companies, Byron Shire Council’s investment portfolio has been exposed to credit products that are below the original amount invested. As an individual, you may have found you have been affected by the recession in the following manner • A drop in the value of your home • A drop in your share
