31 QUESTIONS BY COUNCILLORS IN ACCORDANCE WITH COUNCIL PROCEDURE RULES PDF 190 KB
The Chairman of the Council, the Chairmen of Committees and Sub-Committees and Portfolio Holders to answer any questions on any matters in relation to which the Council has powers or duties or which affect the District of which due notice has been given in accordance with Council Procedure Rule No. 13.
Minutes:
Councillor John Matthissen to the Cabinet Member for Finance
Will you review the fossil fuel element of all council treasury and strategic investments, publish the results, and phase out all counter parties, projects, and investments which finance extraction, processing and distribution of fossil fuels?
Councillor Whitehead – Cabinet Member for Finance
Thank you for your question Councillor Matthissen. From, the research and investigations that I have made over the past few days I have amassed sufficient material to write a long essay or mini dissertation on this subject. However, I feel this is not the place for that so I will try to keep my answer as succinct as possible whilst hopefully still covering the major aspects.
This is a complex area where several strands could be considered around the environmental impact of investments and not just in relation to fossil fuels. So much is happening right now in this area and the Council has recently subscribed to a new service from our treasury management advisors, Arlingclose which will provide further advice and guidance in the coming months.
Our approved Treasury Management Strategy sets out the prime objectives for our treasury investments as being security, liquidity and yield in that order in accordance with CIPFA guidance. Our investments are generally in pooled funds where we hand over our money to professional investment managers to decide on individual investments. These are then actively managed, and I am confident that both technological advances and the Green agenda are very much to the forefront when investment decisions are made by our investment managers. An investment portfolio in 2040 will certainly look very different to today’s – we may well have passed ‘Peak Oil’ and the extraction, processing and distribution of fossil fuels will decline in the years ahead. If you and I know this then our professional managers most certainly will too.
Where I suspect you and I may disagree is over the interpretation of the phrase “phase out” in your question. I see this as an evolution rather than a revolution. The Oil Majors are at the forefront of this evolution and I sincerely believe they have a major role to play in it and are paving the way with their own Research and Development. These large companies are throwing billions of dollars at renewables and at sustainable low-carbon and even zero-carbon solutions. Governments, universities, and new start-up companies have a significant role to play but we should not ignore the fact that the oil giants have both the determination and need to reinvent themselves and are in fact doing so. Responsible investors in these companies have a role to play. I certainly believe that role is not to disinvest and sell on to less scrupulous investors.
In considering the implications behind your question I am also very mindful of how our economy at present is still so dependent on oil in its day-to-day operations. Despite a sustained move to phase out the internal combustion engine over the next few years, many ... view the full minutes text for item 31
QUESTIONS BY COUNCILLORS IN ACCORDANCE WITH COUNCIL PROCEDURE RULES
The Chairman of the Council, the Chairmen of Committees and Sub-Committees and Portfolio Holders to answer any questions on any matters in relation to which the Council has powers or duties or which affect the District of which due notice has been given in accordance with Council Procedure Rule No. 13.
Minutes:
29.1 None received.