Council criticised for £7M tobacco investment
Wandsworth LBC has been accused of double standards after it emerged that the council had £7M invested in two tobacco companies.
The Council, which aims to reduce the amount of smokers across the borough said that investment decisions were made separately to policy.
It currently has £4.6m invested in British American Tobacco and £2.3m in Imperial Tobacco.
A council spokesman said:
‘The council has a paramount fiduciary duty to obtain the best possible financial return on its pension fund investments. As the law stands any shortfall in the fund’s performance would have to be met by taxpayers, so it is important that these investments make the best possible return so taxpayers aren’t burdened unnecessarily.
‘These investments are managed by independent fund managers who invest in hundreds of different companies. They must ensure that any investments are not just in the best interests of the members, but that they also take into account social, environmental and other issues.’
This year Wandsworth has increased its anti-smoking budget to £628,000 and hopes to get 1,256 people to quit.
Opposition Labour Councillor Tony Belton said: ‘The strategy is wrong. They have a strategy to improve the health and welfare of the people of Wandsworth and investing in tobacco companies seems to be an odd way to go about it.’
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