(1)   Is he aware that in May 2009, the Port Macquarie-Hastings Council revealed an $18.5 million potential future loss on investments from collapsed collateralised debt obligations, which make up 75 per cent of investments made.

(2)   Is he aware that in May 2009, the Port Macquarie-Hastings Council revealed that the building project known as ‘The Glasshouse Arts and Conference Centre’, totalling more than $50 million in capital expenditure to date and with an expected operating loss of $5.7 million per annum, makes up 6 per cent of overall Council annual expenditure and is more than its annual parks and gardens budget.

(3)   Will the Australian Government consider an inquiry into local government investment strategies throughout Australia, to determine whether councils have been operating outside investment scope and jurisdiction or whether investment guidelines in Australia need improving.

Local government has been created under state legislation and is regulated by the states. State Governments are responsible for the day to day oversight of their local governments. The NSW Department of Local Government oversees the performance of local government in NSW and has recently developed draft investment policy guidelines to assist councils with the preparation of their investment policies and strategies. The department is currently undertaking consultations in relation to the guidelines.