Issue - meetings

– reportof Mr JohnSimmonds,DeputyLeaderand CabinetMember for Finance& Procurementand Andy Wood,CorporateDirector ofFinance and Procurement).

(1)     Cabinet receiveda reportseeking agreementto proposedchangesto the Council’s TreasuryStrategy, principallyby expandingthe rangeandtypes ofinvestmentwhich could bemade.

(2)     TheLeaderofthe CountyCouncil, MrPaul Carter,reportedthat MrBird, local memberfor MaidstoneCentral had requestedand receivedpermissionto address the meetingon thisitem.  MrBird came to the tableand spoke tothe item.He agreed withthe motivationforchanges statingthat returns on cash investmentswere currently negligibleand on suchsignificantsums ofmoneyas were availableto the councilit wasright thatlong terminvestmentsin higherreturnareaswere sought.  However,he did havesome concernsabout the informationcontainedwithin the report andhe set themout as follows:

(i)      Thatseekinghigher returnswould meanthe acceptance ofhigher risk.  Capital markets,includingequity incomefunds,by design,would fluctuate. Theperformance ofthe FundManagerwould be crucialto managingthis risk and that as such the choiceofmanagerwould be criticalto the success of any amended strategy.He welcomedthe due diligence proposedwithin the recommendationsofthereport.

(ii)     Thatproceduresby whichan opportunityfor investmentwere authorised mustbe open,transparent andproperly recordedand reportedwithout negatingthe co  ...  view the full minutes text for item 20