Higher rate urged for airport funds

Town of Port Hedland staff will again urge councillors at tonight’s council meeting to earn more interest from the airport lease’s $160 million income by investing in Australia bank deposits.

Councillors had decided in March to invest the $160 million in short-term deposits with the State Government’s WA Treasury Corporation.

Some councillors had argued that while WA Treasury Corp paid a lower interest return, it was too risky to invest in higher interest deposits with Australia’s major banks — a claim later rubbished by leading financial analysts.

Town acting director corporate services Dale Stewart urged councillors to reconsider because WA Treasury Corp had now dropped its interest rates even lower from 2.18 per cent in March to 1.78 per cent. He said the airport income could generate more in interest if invested with Australia’s major banks.

“Investing the entire $159.6 million in the ‘big’ four’ banks ...as opposed to with the WATC would ... conservatively produce a greater dividend to the ratepayers ... of $1.2 million per annum with little change to the risk profile,” he said.