Agenda item - Annual Investment Strategy 2012/13

Extract from the Proceedings of the Cabinet meeting held on the 15^th March 2012, together with a report of the Director of Finance (copies attached).

90.2         Councillor J. Kitcat introduced the report which detailed the Annual Investment Strategy for 2012/13 which met with the CIPFA guidance and noted that officers had an excellent record in terms of the investment strategy for the council.  He was happy to accept the Labour & Co-operative amendment that had been circulated and he hoped that further work would enable greater involvement with ethical institutions.

90.3         Councillor Fitch moved the amendment on behalf of the Labour & Co-operative Group which sought to ask officers to look at alternatives to financial investment in Barclays bank and he hoped that a report would be brought to a future committee meeting.

90.4         Councillor A. Norman stated that the council’s record for investments was second to none and officers should be commended for their work over the years and she hoped that would continue.

90.5         Councillor G. Theobald queried whether the intention to review investing in Barclays should also include other institutions such as Santander, which was Spanish and may well have connections with areas that would not be regarded as ethical by some people e.g. bull fighting.  He was concerned about the process and how it would affect the council’s ability to invest in various institutions.

90.6         Councillor Cox stated that he was staggered by the proposed amendment from the Labour & Co-operative Group and could not understand the reasoning behind it and questioned whether residents would.

90.7         Councillor J. Kitcat stated that the intention was to look at wider opportunities for investing in ethical institutions and to enable the council to diversify.

90.8         The Mayor noted that the amendment had been accepted by Councillor Kitcat and that Councillor Cobb had requested a recorded vote for which a sufficient number of Members had indicated their support.  She therefore called on the Head of Democratic Services to undertake the vote.

90.9         The Mayor stated that the recommendation as amended had been carried by a vote of 33 to 17 and therefore was approved.

90.10    RESOLVED:

(1)   That the Annual Investment Strategy 2012/13 as set out in Appendix 1 to the report be approved;

(2)   That officers be requested to look at alternatives to financial investment in Barclays bank, and to bring a report to a future meeting of the Policy & Resources Committee or other appropriate body of the council.