Councillor warns against doing a ‘deal with the devil’

Councillor warns that financing of the Cultural and Civic development could be linked to investment in fossil fuels.

Councillor warns against borrowing money for the Cultural and Civic Space from “fossil fuel lender” TCorp.

COUNCILLOR Paul Amos has warned against borrowing money for the Cultural and Civic Space from "fossil fuel lender" TCorp.

Coffs Harbour City Council has an established policy of limiting dealings with companies who have links with the fossil fuel industry.

The policy was adopted at council's meeting on August 24, 2017.

"So we are in a real predicament here as this is a policy of council," Councillor Amos stated.

"TCorp is a huge player in the fossil fuel industry.  So we need to determine if we are happy to do business with TCorp given the resolved position of council to limit these kinds of dealings."

Cr Amos has been a strong critic of the $76.5million Cultural and Civic Space and the TCorp angle was seen by some Councillors as yet another attempt to stop the project moving forward.

Cr Amos has called for a report into the viability of the financial arrangements underpinning the proposed Cutural and Civic Space if council was to go with another lender.

Council is making preparations to sell a number of assets including Rigby House and the current chambers in Castle Street to help fund the Cultural and Civic Space.

"We need to pause the process of selling these assets. What if we sell these assets and find we can't borrow from TCorp.

"We need to determine council's position on this and if we want to - in the eyes of some councillors - do a deal with the devil."

TCorp is an established government lender with highly competitive rates.

General Manager Steve McGrath insisted that while their rates are extremely competitive and some financial modelling has been based on those rates, council was not locked into dealing with TCorp.

The matter was debated at Thursday evening's council meeting with councillors agreeing to a report into the eligibility of dealing with TCorp. 

The sale of council assets and planning for the demolition of buildings on the Gordon Street site will proceed as planned.