Council should keep investing

Nov 7 2008

THE letter 'Stop playing the financial markets' of October 24 seems less than logical.

All councils have income spread unevenly through the year and the duty to spend it for the benefit of the public in the best way and at the right time.

To do this and be able to pay its bills, it needs a reserve of money, and must keep it somewhere.

Most of us would prefer it to be invested safely but at a good rate of interest.

I think it very probable that our council takes expert advice before choosing a bank, and until a short time ago most experts seem to have favoured the Icelandic banks.

Consumer watchdogs WHICH? magazine recommended two of them up until a few days ago. Many competent investors have also been caught out.

Councils led by all political parties do make mistakes from time to time, but I want ours to keep on trying to invest our funds prudently and profitably, as any well-run business must do.

Trevor Mathews

Ayr