Value of county council’s tobacco shares increase despite a review of the investment plan – News – Ipswich Star
Some controversy at Suffolk County Council as fund managers increase tobacco holdings in business as usual move, while council consults on tobacco divestment. Will Suffolk follow Greater Manchester and divest?
Scottish QC gives opinion that LAs can divest from tobacco
Earlier this year the Local Government Association obtained a legal opinion from Nigel Giffin QC which has been widely publicised and is available on the LGPS website. That opinion has been interpreted in different ways, but the consensus seems to be that in practice it has given very little more leeway to local authority pension committees to divest from tobacco stocks. The Law Commission has also referred to that opinion in its recent report on fiduciary duties.
However, I have recently discovered that another QCs opinion was obtained in Scotland last year from a QC named O’Neill. A copy of this is attached also. This QC is quite clear that local authorities can divest from tobacco stocks. In his observations he notes that much of the Trust case law is now quite old (20-30 years), that in any event more recent statute law is what governs the LGPS, and that the public policy environment around tobacco has changed substantially in recent decades. He doesn’t mention the Framework Convention on Tobacco Control as a material factor, which I believe would have strengthened his opinion, but nevertheless the acknowledgement that public policy is a material factor, to be considered alongside others such as financial returns, is an important development.
The attachment contains both legal opinions, but please note that the pdf file has 6 blank pages at the beginning. Scroll down to page 7 please to read in full. Does anyone have any observations to make on the relative merits of these observations? In particular, given the public health role of local authorities in England and their investments in smoking cessation and tobacco control, should LAs be able to use similar grounds as charities in excluding tobacco stocks from their pension fund investments?
Suffolk: Council votes to disinvest pension funds from tobacco companies – Politics – OLD – East Anglian Daily Times
This looks like it might be the first local government pension fund to publicly divest from tobacco shares held directly by the fund,as opposed to those only operating pooled funds. The Council has given a strong lead to the pension committee, and the quotes suggest that committee is likely to agree to divest. It is not a foregone conclusion, but if it happens this will be a highly significant development.
Chain smoker’s widow awarded $23bn in punitive damages in Florida | Business | theguardian.com
Chain smoker’s widow awarded $23bn in punitive damages in Florida | Business | theguardian.com.
While it seems likely the punitive damages awarded in this case will be successfully appealed, it remains to be seen what level of damages will remain once the appeals processes are completed. The jury evidently found that the company knew what it was doing. According to one of the lawyers involved the infamous footage of 7 Chief Executive Officers lying to Congress about the addictive effects of nicotine had a big impact on the jury.
See the footage here.
EHN Online | Resignation over pension tobacco investment
EHN Online | Resignation over pension tobacco investment.
More on the Kent Public Health Consultant’s resignation.
BBC News – Kent health expert resigns over tobacco comments
BBC News – Kent health expert resigns over tobacco comments.
Dr Marion Gibbon of Kent County Council Public Health Department has resigned over the issue of being able to speak out about the Council investing in tobacco companies through its pension fund. Dr Gibbon was disciplined after giving an unauthorised interview to the BBC last year.
Remarkably KCC’s deputy leader is quoted stating that tobacco companies are reputable. Perhaps he should have a word with George Osborne MP, the Chancellor of the Exchequer, but who as a backbencher famously accused Imperial Tobacco chiefs of being either stupid or crooks, and they didn’t look stupid!
Croydon quits tobacco
Croydon Council has decided to switch to an ethical fund excluding tobacco investments.
Councillor John Wentworth, chair of the pensions committee, said investing in tobacco was at odds with the council’s responsibility for public health.
He added: “Having a pension fund that invests in tobacco was very much at odds with our responsibility to protect and improve public health in this borough, and there were clearly a number of concerns about the ethics of doing that.
“Ensuring that the council is a socially responsible investor was a key manifesto pledge for the administration.”
Tayside Pension Fund chiefs told to abandon tobacco investments as soon as possible – Dundee / Local / News / The Courier
In an encouraging move Tayside Pension Fund has instructed managers to divest from the tobacco industry investments once they can find suitable replacements.
Comic Relief bans arms, tobacco and alcohol firms from investment portfolio | Television & radio | theguardian.com
Comic relief came under heavy criticism following a BBC Panorama programme last year highlighting that some of its pension fund investments were incompatible with the charities aims. Following an initially defensive reaction, the charity has conducted a review and made the decision to divest from tobacco, arms and alcohol.
Importantly, the charity has received legal advice that it is able to make this move.
Ethics concern emerges over pension fund reform | News | Local Government Chronicle
Ethics concern emerges over pension fund reform | News | Local Government Chronicle.
There are concerns that government proposals that funds invest more through pooled investments may limit the scope for excluding tobacco stocks.
This article also makes reference to funds engaging with companies, yet the Framework Convention on Tobacco Control guidelines make it clear that local government, including bodies and individuals acting on their behalf, should not engage with tobacco companies on the sort of issues outlined here.
Tobacco Free Pensions 