NSW will dump Russian assets to protest the Ukraine invasion and more controversial investments could be on the chopping block as well.
But Treasurer Matt Kean said he doesn’t think it was a mistake to invest in Russia in the first place.
Mr Kean told a budget estimates hearing on Monday taxpayer money shouldn’t go to “tyrannical regimes” such as that of Russian leader Vladimir Putin, who sent troops into neighbouring Ukraine last week.
“I have some concerns about where we’re investing; NSW taxpayer money, I don’t think, should be going towards tyrannical regimes, dictatorships and organisations that don’t share our liberal ideals,” he said.
The NSW government’s Generations Fund has significant holdings in countries such as Saudi Arabia, China, Angola and Russia, the state opposition revealed last year.
Mr Kean said at the time he would launch a review of the fund to ensure it met so-called ESG principles.
ESG, which stands for environmental, social xjmtzywand corporate governance, is a form of social credit score businesses and governments can use to make sustainable and socially responsible investment decisions.
Mr Kean decided at the weekend not to wait for the review before selling off the Russian assets, in light of the country’s act of war.
“Obviously the Russian situation is unique and we wanted to move on that in step with the rest of the world,” he said.
Mr Kean was asked if his predecessor as treasurer, Premier Dominic Perrottet, had made a mistake in overseeing the Generations Fund investments in 2018.
“No, that’s not what I’m saying,” Mr Kean said.
“I’m saying that the government has an ESG framework, the investment strategy was done in line with that framework, the framework clearly needs to be tight enough.”
Mr Kean said ESG expert Pru Bennett would take a look at the framework and make recommendations to the government as to how it can be improved.
Meanwhile, in Victoria, a radio host called for Melbourne to relinquish its status as sister city to Saint Petersburg in Russia in response to the invasion.
“Today, at once, Melbourne City Council should suspend its sister city relationship with Saint Petersburg,” 3AW host Neil Mitchell said.
