I am trying to understand an argument in Guillemin and Sternberg's paper Geometric Quantization and Multiplicities of Group Representations (Inventiones, 1982). The argument (Proof of Theorem 3.2) seems to be based on the following fact:
Lemma (I think). Let $G$ be a compact connected Lie group acting smoothly and freely on a smooth manifold $M$ and let $L$ be a $G$-equivariant complex line bundle on $M$. Then there is a complex line bundle $L_G$ on $M/G$ such that $\pi^*L_G = L$, where $\pi : M \to M/G$ is the quotient map.
They claim this result (without proof) in a more specific setting (where $M$ is the zero fibre of a moment map and $L$ is the pullback of a prequantum line bundle), but I don't see why it should hold.
More specifically, they define $L_G$ by the sheaf of $G$-invariant sections of $L$, but I don't see why it is locally free of rank 1. It is easy to see that the lemma is equivalent to the following claim:
Claim. For every $p \in M$ there is a $G$-invariant neighbourhood $U$ of $p$ in $M$ together with a non-vanishing $G$-invariant section $s : U \to L$.