Take your funds out of tobacco, council urged

10:10am Thursday 20th September 2012 in News By Tom Edwards

Take your funds out of tobacco, council urged Take your funds out of tobacco, council urged

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

Despite the council 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 which sell cigarettes.

The pension fund, which has £1.5 billion in assets, has £15 million invested 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”.

Councillor Alan Amos, deputy leader of the county’s Labour group, said: “Smoking kills 122,000 people every year, it causes one in six deaths in Worcestershire and there are around 17,000 people in the county suffering from smoking-related diseases.

“It costs the NHS in Worcestershire £50 million every year. It’s grossly hypocritical to be spending all this money on health while investing in the tobacco industry, which is killing people. There will always be different companies to invest in. Is the leader happy to go on running an immoral council?”

Councillor Liz Tucker, Lib Dem group leader, said: “I accept there’s a contradiction in putting money into encouraging people to stop smoking while at the same time, investing in these companies. I cannot accept it or explain it away, so I’ll be backing this.”

Labour group leader Peter McDonald said: “We can’t have two faces. We can’t go into schools saying ‘don’t smoke’ while we put millions into tobacco.”

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

Councillor David Thain said: “Smoking is a repulsive habit, but we’re breaking no laws. It’s very difficult to know where you draw the line.”

Councillor John Campion, a fellow Tory, 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? This is a very small part of the pension fund and should we be denying the rights of those people who have worked hard for those pensions the best return?”

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.

The motion was rejected after a blanket Conservative vote for refusal.

Comments(15)

MrStJohns says...
10:28am Thu 20 Sep 12

Councillor David Thain said: “Smoking is a repulsive habit, but we’re breaking no laws. It’s very difficult to know where you draw the line.”


I wouldn’t say its any more repulsive than politics,

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Maggie Would says...
10:29am Thu 20 Sep 12

'Councillor John Campion, a fellow Tory, 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?'
What a ridiculous statement. Who voted him in?
Such hypocrisy.
I despair.

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Maggie Would says...
10:30am Thu 20 Sep 12

MrStJohns wrote:
Councillor David Thain said: “Smoking is a repulsive habit, but we’re breaking no laws. It’s very difficult to know where you draw the line.”


I wouldn’t say its any more repulsive than politics,
Ha ha!

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happydays6 says...
11:01am Thu 20 Sep 12

Can someone clarify what does "invest in tobacco companies" mean. What exactly do they invest in? And what does the council get out of it?

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JohnCSG says...
11:23am Thu 20 Sep 12

happydays6 wrote:
Can someone clarify what does "invest in tobacco companies" mean. What exactly do they invest in? And what does the council get out of it?
Its pension fund investments in tobacco companies. And sorry I agree with some of the flks voting against it, if you start taking the moral highground in investments, who is left to invest in?

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chas says...
11:52am Thu 20 Sep 12

Tobacco company shares are one of the safest on the market. Should councils invest in more risky shares?
Many councils lost a lot of money when they invested in Icelandic banks

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daned says...
11:55am Thu 20 Sep 12

One of the worst things that Lansley's NHS reforms did was to make local councils responsible for twenty one areas of health. I suspect that this sort of argument is going to be a permanent fixture of future plans by the council.

Don't ask me what the 21 areas are - it seems to be a closed secret.

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RichardR1 says...
12:18pm Thu 20 Sep 12

As Tobacco shares are normally the highest performing blue chip companies why should Pension Funds not have them. It's the duty of a pension fund to maximise returns to their investors, ie workers.

Failure to do so could lead to the fund being taken before the regulator.

Anti smoking types should keep their hands out of workers pockets.

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MrStJohns says...
1:28pm Thu 20 Sep 12

Most likely the same dim witted anti smoking brigade that’s said, yes get those smokers out of the pubs and we will come drinking in our droves.


Hmmm didn’t happen didn’t it, pubs closed at a record rate, and those that used to go and socialise and have a drink and a cigarette no longer bother and sit at home doing the same thing instead.


If the government are going to continue taxing cigarettes and upholding their legal status they should stop with the hate campaign towards people who partake in a product that is 100% legal.

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ushmush83 says...
4:15pm Thu 20 Sep 12

Wow, don't they have better things to do with their time? We pay these people wages, I'm flabbergasted!! Surely these local councillors do not decide where the money is invested? If they did, the public sector would be sure to lose their pensions!

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Endconreignforever says...
6:55pm Thu 20 Sep 12

Isn't it about time we invested in good, none destructive and honest companies..I was once a smoker and wouldn't want to deny anyone the right to smoke except in public spaces and pubs closing isn't a bad thing considering the damage Alcholo does to people.

However it is hypocracy to educate one thing to our kids and do another. Typical I must say of any Tory Government..There are many new and positive campanies this money could be put into and could possibly make a higher return while boosing our own economy. But No Tories want to stay with the status quo and help big business..What a surprise. Time for Change!!

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marma495 says...
8:00pm Thu 20 Sep 12

Simply cannot see any sense in investing in any companies where the dividends are very low or even worse risky. The council has a duty to get the best possible returns and the tobacco companies are some of the best. Only wish I could afford to buy shares in them.

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Vox populi says...
8:55pm Thu 20 Sep 12

Who cares as long as taxpayers get their return. :-)

Weapons, booze, tobacco are great commodities to invest in and always have been since trading began. Get over it people!

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MJI says...
10:43am Sat 22 Sep 12

MrStJohns wrote:
Most likely the same dim witted anti smoking brigade that’s said, yes get those smokers out of the pubs and we will come drinking in our droves.


Hmmm didn’t happen didn’t it, pubs closed at a record rate, and those that used to go and socialise and have a drink and a cigarette no longer bother and sit at home doing the same thing instead.


If the government are going to continue taxing cigarettes and upholding their legal status they should stop with the hate campaign towards people who partake in a product that is 100% legal.
Funny really a lot ospub businesses seems quite strong still.
.
More issues with punative leases. I have seen that kill off more pubs than any smoking ban.
.
There seems to be a lot more people in at mid day now for food and people wanting a quick drink without smelling.
,
It is so nice to pop into a pub and have a quick drink in my dinner time.
.
(Someone who got fed up of smelling after going to a pub).

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MJI says...
10:44am Sat 22 Sep 12

marma495 wrote:
Simply cannot see any sense in investing in any companies where the dividends are very low or even worse risky. The council has a duty to get the best possible returns and the tobacco companies are some of the best. Only wish I could afford to buy shares in them.
I'd rather invest in BAe or some other high tech defense company.
.
Of course the best companies to invest in are the solid IT companies.

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