The LGA are using the findings of a recent poll to deflect criticism away from councils.
Read the questions: I too think it's reasonable for a council to earn interest on public money and I too think councils were caught up in a worldwide banking problem. But that is not what they were being criticised for. The criticism was about putting public money into the more dodgy financial institutions to earn a higher level of interest. The banking crisis just exposed the problem.
This LGA poll is a fraud, one big red herring, designed to deflect criticism away from the fact that some councils were essentially gambling with public money. To make matters worse the LGA used public money to pay for their dodgy dossier.