OIC leader praises council investment boost

Orkney Islands Council is managing its investments well, according to a recent report considered by the new council.

The report, heard in private due to commercial sensitivities, provided information on the valuation of the council’s managed funds. It showed that the council’s Strategic Reserve Fund increased by £27.4m (15.6 per cent) over the 2016/17 financial year. The value of the Strategic Reserve Fund now sits at £207.2m.

Investment decisions are made on behalf of OIC by appointed specialist fund managers, who select the companies in which to invest on behalf of the Strategic Reserve Fund in order to earn a return on those investments. The aim of the fund managers is to return an annual surplus to the Council that is used to supplement the running of services and to protect services and jobs.

Reserves are then invested for the future benefit of Orkney, as well as supporting a range of projects that contribute to the current economic and social wellbeing of the county. This includes major infrastructure projects like the extension to Hatston Pier and community initiatives such as the new Birsay Hall.

OIC political leader, James Stockan, who chairs the Investments Sub-Committee described this as an exceptional year for investment returns. He hopes that it will help the council prepare for the hard and difficult years that are being predicted for local authority funding.

“We have already taken a much larger contribution from the Strategic Reserve Fund to keep local services functioning,” he explained.

“We are mindful that investments can go down as well as up, so we have to proceed in a cautious manner.”