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By Catherine Watson
“A disgrace … charlatans of the worst order … dirty money …” Cr Michael Whelan didn’t hold back as he explained why Bass Coast Shire Council should give the big four banks the flick.
It was a flash of the old Cr Whelan, who has been on a tight diplomatic leash as mayor for the past two years. Now that he’s a plain old councillor again he’s free to speak his mind.
He certainly did that at Wednesday’s council meeting while proposing an amendment to the council’s investment policy to more quickly divest from banks funding fossil fuel projects.
“A disgrace … charlatans of the worst order … dirty money …” Cr Michael Whelan didn’t hold back as he explained why Bass Coast Shire Council should give the big four banks the flick.
It was a flash of the old Cr Whelan, who has been on a tight diplomatic leash as mayor for the past two years. Now that he’s a plain old councillor again he’s free to speak his mind.
He certainly did that at Wednesday’s council meeting while proposing an amendment to the council’s investment policy to more quickly divest from banks funding fossil fuel projects.
“Our children depend on us decarbonising our economy, getting out of fossil fuels … Australia has signed up to that and the banks mouth platitudes that they are in favour of getting out of fossil fuels at the same time as they fund these fossil fuel projects through chinks in the contracts and little back door ways of doing it.
“While Westpac, for example, has a green project, they’ve isolated it and over here they’re funding more fossil fuel projects. They are charlatans of the worst order …
“While Westpac, for example, has a green project, they’ve isolated it and over here they’re funding more fossil fuel projects. They are charlatans of the worst order …
“By investing in these dirty banks we are still indirectly investing in those dirty projects. This is a way of us saying to the banks: ‘Enough! We’re sick of you! Go away! You’re dirty money.’”
It was Cr Whelan who steered through the council’s climate action plan in 2021. One of the planks of that policy was to amend the council’s investment policy.
Under the previous investment policy, the council was required to preference financial institutions “that do not directly or indirectly support companies engaged in the extraction of coal and other fossil fuels” where the interest rate was within 0.3 per cent of the best available rate quoted.
The amendment widens the allowable differential to 0.5 per cent, providing more flexibility when selecting investments based on fossil fuel divestment that may lead to reduced interest returns.
The council’s audit and risk committee endorsed the proposed investment policy last month.
The bulk of the council's money is currently invested with the Westpac Bank.
When the council first considered divesting from banks and other financial institutions that fund fossil fuel developments, back in July 2016, it provoked howls of derision.
“Have they lost their marbles completely?” the South Gippsland Sentinel-Times editorialised.
“The council has no mandate for stuffing around with our money, especially in these tight times … If the mob sitting around the council table at the moment can’t see that, we should chuck the lot of them out at election time.”
And the ratepayers did, with only a single councillor – our current mayor – surviving the electoral rout.
Seven years later the move was consistent with council policy and seemed entirely unremarkable. The motion passed unanimously, apart from Cr Les Larke, who abstained, as is his usual practice.
It was Cr Whelan who steered through the council’s climate action plan in 2021. One of the planks of that policy was to amend the council’s investment policy.
Under the previous investment policy, the council was required to preference financial institutions “that do not directly or indirectly support companies engaged in the extraction of coal and other fossil fuels” where the interest rate was within 0.3 per cent of the best available rate quoted.
The amendment widens the allowable differential to 0.5 per cent, providing more flexibility when selecting investments based on fossil fuel divestment that may lead to reduced interest returns.
The council’s audit and risk committee endorsed the proposed investment policy last month.
The bulk of the council's money is currently invested with the Westpac Bank.
When the council first considered divesting from banks and other financial institutions that fund fossil fuel developments, back in July 2016, it provoked howls of derision.
“Have they lost their marbles completely?” the South Gippsland Sentinel-Times editorialised.
“The council has no mandate for stuffing around with our money, especially in these tight times … If the mob sitting around the council table at the moment can’t see that, we should chuck the lot of them out at election time.”
And the ratepayers did, with only a single councillor – our current mayor – surviving the electoral rout.
Seven years later the move was consistent with council policy and seemed entirely unremarkable. The motion passed unanimously, apart from Cr Les Larke, who abstained, as is his usual practice.
Comments are closed.
Think net zero emissions by 2030 and this is not that far away.
It is critical that you look at the banks credit ratings before you invest council funds.
The BCSC forward estimates over the next four years reveal an average of cash and equivalents of around $20 million and a half percent difference in interest equates to $100k per annum.
It is far better to stick with the big four because they have the superior credit rating and an extra $100k per annum can help fix the pot holes.
I’m far more interested in the Bass Coast vision for the future. I think the City of Bass Coast and how we are going to get there.
Cheers
But a BIG hurrah to the Cr for bringing it to the spotlight!
You haven't got a clue!