Member Article

Councils criticised for tobacco investments

Norfolk and Essex councils are reconsidering multi-million pound pension investments in tobacco firms, ahead of a lead role in NHS anti-smoking campaigns next year.

A request under the Freedom of Information Act revealed that councils throughout the region have invested over £167m in tobacco with Norfolk accounting for £25.9m and Essex for £9.1m.

Norfolk County Council have released a statement explaining that they themselves have not invested in tobacco companies. The County Council stressed that while they administer the Norfolk Pension Fund, on behalf of over 130 employers and 26,000 contributing employees, the fund is overseen by a Pension Committee which is in charge of obtaining the best return on investments for its members and employers.

Director of research and policy at anti-smoking group Ash, Martin Dockrell told the BBC: “From 2013, local councils will have responsibility for leading local efforts to reduce the burden of death and disease from smoking, yet many of them are the largest tobacco shareholders in the area.”

Mr Dockrell added that ethical investment rules mean fund managers are allowed to say that they would only invest in tobacco companies if they are unable to match the value of such an investment.

The two councils have said that they will be reviewing their investments in light of their involvement in the upcoming NHS anti-smoking campaigns.

This was posted in Bdaily's Members' News section by Francesca Dent .