Money in tobacco

DEMANDS are being made for Worcestershire County Council to withdraw £21 million of investments in the tobacco industry.

Despite the authority taking over responsibility for stop smoking services from next year, and being in charge of creating an overall health strategy for the county, bosses still invest in companies that sell cigarettes.

The pension fund, which has assets worth £1.5 billion, currently has £15 million stashed in British American Tobacco and £6 million with Imperial Tobacco.

During a fierce debate at County Hall, councillors said it was “grossly hypocritical” and “immoral”.

Coun Alan Amos, deputy leader of the county’s Labour group, said: “There will always be different companies to invest in, and that’s what we should do – is the leader happy to go on running an immoral council?”

His comments drew gasps from some corners of the council chamber but the motion, created by the Labour group, was backed by the Liberal Democrats.

However, it was voted down by the Conservatives, despite many admitting it was a moral dilemma.

Conservative councillor John Campion said: “If we take a moral standing over this, where do we stop?

“Do we stop investing in car companies because we’re all for public transport?”

Councillor Adrian Hardman, the group leader, said taking out the money would “open up the gates” for people to demand they withdraw cash from all sorts of other investments

Comments(3)

James King says...
10:01pm Mon 1 Oct 12

I have some advice for Cllr Hardman and the Conservative group. Adopt the position of the Norwegian and New Zealand state pension funds. Both these countries exclude tobacco as being incompatible with their Governments' status as signatories of the Framework Convention on Tobacco Control, the only international public health treaty.

The guidelines to article 5.3 of that Convention expressly state that no branch of government shall invest in tobacco companies.

The slippery slope argument simply does not apply. Just abide by a Treaty to which the UK government is also a signatory.

See http://tobaccofreepe
nsions.wordpress.com
/ for more info.

RichardR1 says...
11:28am Tue 2 Oct 12

Political interference in any pension fund is wrong, even more so when tobacco stocks are the highest performing blue chip stocks currently in the UK.

It would also be criminal for the trustees to be forced to sell, even had the motion gone through. It is not the Councils money it is the staffs money.

The only conceivable way legally this could be done is by a ballot of all 'stack holders' both in work or receiving the pensions. The full scope and benefits of the fund would have to be explained. I doubt any pensioner or worker would wish to lose a sizable chunk of their pension pot, because the Councillors face a moral dilemma, however flimsily based that dilemma is.

For the record I don't and have never smoked.

scottwichall says...
11:44am Tue 2 Oct 12

I have even more advice for these Councillors. Ignore the "financial" advice of the handwringers, as Tobacco stocks consistently perform well.

The WHO Framework is irrelevant anyway, as it was promulgated by an unelected body (The WHO), ratified by a further unelected body (The UN), and as a treaty signed without seeking the permission of the UK electorate.

Totally incompatible with any notion of democracy.

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