Boorowa Council General Manager, David Philpott, has said that council has suffered no exposure in the recent investment losses that have occurred due to the crash of the US sub-prime mortgage market.

A review of the exposure of NSW Councils by Michael Cole has found that some councils had as much as 50 per cent of their investments in collateralised debt obligations (CDOs).

The Cole Report found NSW councils face losses of $200 million — with one council estimated to have lost $22 million.

Treasurer Michael Costa said the Government would act immediately to tighten regulations around council investments and investment advisors by adopting all eight of the report’s recommendations.

“We need to act swiftly to work with local government and introduce more rigorous standards that will protect the interests of ratepayers,” Mr Costa said.

“The Cole report also reminds us that councils not only need to act as responsible trustees of public funds but also get independent financial advice before making investment decisions.

“As the report makes clear, it is not enough for councils to claim compliance with existing investment guidelines is sufficient to meet their obligations - they are also governed by their fiduciary responsibility as trustees for the prudent investment of public funds”

Boorowa Shire Council had no funds invested in CDOs and continues to adhere to State Government guidelines on investments, which require Councils to invest only in AAA rated market products.