A TROUBLED economy has warded Greater Bendigo's council off intensifying the way it tackles climate change any time soon.
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Councillors on Monday night dismissed reforms to its banking policies in a play for time to deal with a potential financial storm gathering over the council's budget forecasts.
The decision delayed any changes to a "loading" policy encouraging the council to bank with groups that don't do business with fossil fuel companies.
The policy would have allowed council officers to double the weight they give institutions that do not fund fossil fuels when deciding on banks and other financial institutions.
It currently sits at 0.05 per cent.
Doubling that loading could have shaved an estimated $30,000 a year off interest earnings.
That would have been too much for a majority of councillors, who have instead opted to tread water and review the matter again in two years.
Budget fears mounting at Bendigo council
Monday's decision was another sign of what is shaping up as a year of belt tightening around the council table.
Multiple councillors have been concerned by what they have branded a "perfect storm" of steep inflation, spiraling construction costs and deep skills shortages.
They want to head off any major problems with budget bottom lines before any serious issues emerge.
Cr David Fagg was on Monday night a lone voice calling to overturn the status quo.
He argued any losses would be small compared to the gains of increased action on climate change.
The argument made little traction among other councillors including Cr Margaret O'Rourke who wanted to leave the existing 0.05 per cent loading guideline untouched.
"I thought we were ready to take this next step to 0.1 per cent but in the current financial environment ... I am unable to commit to this," she said.
Cr O'Rourke said her changing position had been influenced by a discussion in the council's influential audit and risk committee, which is comprised of both council figures and independent experts.
She came away believing the current guidelines send a strong enough message about the council's intent for the moment.
No change on sector-wide divestment push
Also striking a fiscally conservative tone was Cr Jen Alden, who last month called for all local governments to divest more from financial institutions that back fossil fuel projects.
She expected a very different economic landscape by 2025 when the guidelines would again be reviewed.
Monday night's decision would not stop the council taking Cr Alden's previous calls for fossil fuel divestments to key summits of local governments later this year.
Council officers want to sway the industry at 2023 gatherings of the Municipal Association of Victoria Australian Local Government Association's members.
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Tom O'Callaghan
I grew up in Bendigo and I want to tell your stories.
I grew up in Bendigo and I want to tell your stories.
