18 August 2009
Source: LocalGov.co.uk ()

Council criticised for £7M tobacco investment


Arun Marsh

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.'



Your comments

What business is it of any local council if people choose to smoke. Local government is about providing local services and not about poking noses into private lives. We elect councillors to oversee what the unelected officials get up to, perhaps the people of Wandworth should consider this when they next get a chance to vote.

Chris Newcombe. C.L. Newcombe Plumbing , Added: Tuesday, 8 September 2009 04:39 PM

Comments in the article by people that don't really understand how the stock market works. The original cash generated by selling the shares has long since been invested and spent by the tobacco companies - Wandsworth has simply bought pieces of paper which pay a certain rate of return (dividends) which are currently high. There's a certain elegance to using dividends from Tobacco company shares to pay for anti-smoking campaigns!

Rich, Manager, WMBC, Added: Wednesday, 26 August 2009 09:18 AM

A good way of keeping the pension pot over flowing is to kill people off with tobacco addiction before they can get their pension money back, which they have put into the pot! So investment in tobacco makes good financial sense. The only trouble is pre-meditated killing is murder! Stuart Holmes. www.ActorsSmokingFilmsTV.blogspot.com

Stuart Holmes Campaigner , Added: Tuesday, 18 August 2009 07:50 PM



 Back     Top of page

Advert