Hundreds of millions of pounds of Essex taxpayers’ money will be invested in banks previously considered too risky.Not the headline – they are ’forced’ into this.
By whom?
Essex County Council has agreed to invest its reserves in some of the nation’s financial institutions which are currently on a “negative watch” list.The rules are too restrictive? Well, change the rules, then.
Negative watch means a company’s credit rating is under review and was therefore suspended from the list of acceptable places to invest, under the council’s treasury management strategy.
However, this strategy has now been changed and the head of finance can now invest in companies on this danger list, ratified by the full council earlier this week.
That’s politics for you.
You know what they: 'a few million of taxpayer's money lost here, a few million of taxpayer's money lost there and very soon you're talking about REAL money.'
ReplyDeleteWhy have they got money to invest anyway? If they don't need the money to provide sevices, they should reduce council tax.
ReplyDeleteWell, it's clear to me that there aren't too many PhDs in council treasury departments. Have they forgotten the Iceland debacle?
ReplyDeleteMy council is still chasing several million squids which they parked there.
Their excuse? We were 'chasing yield.'
Wankers.
It is not the duty of councils to act as investment bankers.
ReplyDeleteIf they millions in reserves, it is quite obvious that taxation is unnecessarily high.
A good way of ensuring sound fiscal management is to make the CEO in particular, and Councillors in general, personally liable for ANY losses
Anyone remember Western Isles Council losing £24 million when BBCI collapsed in 1991? No, obviously some more expensive lessons will have to be learned.
ReplyDeleteBrian,
ReplyDeleteYou got my hopes up then.
BCCI.
Euromillions lottery - don't go putting ideas in their heads.
ReplyDelete"...'a few million of taxpayer's money lost here, a few million of taxpayer's money lost there and very soon you're talking about REAL money."
ReplyDelete:D
"Why have they got money to invest anyway? If they don't need the money to provide sevices, they should reduce council tax."
Precisely!
"Have they forgotten the Iceland debacle?"
That won't happen to them. Lightning never strikes twice, does it?
Oh. Wait...
"A good way of ensuring sound fiscal management is to make the CEO in particular, and Councillors in general, personally liable for ANY losses"
Spot on!
Isn't the EU planning to do exactly the same thing?
ReplyDeleteAll that fuss about "ratings agencies having too much power"...
I agree with KenS: If they don't need the money to provide sevices, they should reduce council tax.
ReplyDelete