Council won't stub out its tobacco links

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A council which is taking on responsibility for anti-smoking campaigns has been criticised for refusing to withdraw more than £25 million invested in tobacco firms. Cambridgeshire County Council will be in charge of public health from 2013 but said shifting its pension fund’s holdings would “run the risk of losing millions of pounds”. The decision, made after a review by the Cambridgeshire Local Government Pension Fund – which serves 174 employers including the county council – was branded “pathetic”.

Cllr Steve Count, who chairs the fund and is the council’s cabinet member for resources, said: “After careful consideration of the financial implications and legal advice the committee, made up of representatives of the 174 employers, decided not to remove our funds from the tobacco industry. “This was a hard decision but it is clear we have a duty to achieve the best return for our members.” He added: “Our investment represents just 1.6 per cent of our total fund. “If we had decided to alter our strategy we would run the risk of losing millions of pounds that ultimately would have had to be paid for by taxpayers.”

The fund has £14.6 million invested in British American Tobacco, £3.4 million with Altria, and £3.1 million with Japan Tobacco Inc. It also has £2.8 million invested in Imperial Tobacco Group and £900,000 with Philip Morris, plus £500,000 in other tobacco companies. Cllr Caroline Shepherd, the Liberal Democrat health spokeswoman, said she “deplored” the decision. She told the News: “The effect on cancer incidence from tobacco is well known and smoking costs the NHS millions if not billions of pounds.

“For a simple removal of a tiny fraction of its portfolio, the council could support the strong message that its own health officers are giving out – ‘don’t smoke’ – but instead they say ‘we prefer to profit by people’s habit’. What a pathetic decision.” Cllr Tariq Sadiq, leader of the Labour group, said the investments were “impossible to justify”. He said: “In the end it will cost the councils and taxpayers more because we will all have to pay for the consequences of poor health. “The council should take a much wider view because pension funds are about investing for the long-term.”