Health bosses invest in tobacco industry

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Friday, February 26, 2010
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This is Gloucestershire

MILLIONS of pounds of Gloucestershire's money is tied up in tobacco companies to boost pension profits by county councils and health bosses.

Anti-smoking groups reacted with outrage after it was revealed health chiefs and councils have £9 million worth of investments in two major tobacco companies.

NHS Gloucestershire, which runs NHS Stop Smoking, is one of the contributing employers to the county-wide fund which has 40,000 members.

Gloucestershire Local Government Pension Fund has holdings valued at £6.4m in British American Tobacco and £2.4m in Imperial Tobacco Group last financial year.

The pension scheme is open to all local government employees, including Cheltenham Borough Council, and Gloucestershire County Council administers the fund.

It invested £29.4m in the fund and its employees contributed almost £10m. NHS Gloucestershire paid £188,000 into the fund.

Murray Watson, chairman of Breathe Easy in Gloucester and the Cotswolds, which is a patient support group linked to the British Lung Foundation, called for health chiefs to review unethical investments.

He said: "It is ironic. We are trying to keep people out of hospitals and they are investing in companies which profit from smokers.

"I appreciate they are trying to make money but they should invest in other companies."

The fund is also available to employees of Gloucestershire's six district councils, all parish and town councils, the University of Gloucestershire and other public organisations.

Cheltenham MP Martin Horwood said the councils should "disinvest" from companies whose objectives are diametrically opposed to those of the NHS and Cheltenham Borough Council.

He said: "It also strikes me as a pretty poor long-term investment, given the risks associated with the tobacco industry."

A spokesman for NHS Gloucestershire gave no indication it would demand ethical investment from the fund.

She said: "We understand Gloucestershire County Council monitor closely the nature of investments made and seek to achieve best value with the funds available."

Lee Coates, director of the Ethical Investors financial advisers company in Cheltenham, said any member of the pension fund has a right to dictate what the county council does with the money.

He said: "For 26 years there has been no difference in return from ethical and non-ethical funds.

"All pension funds should have a written statement disclosing the social, ethical and environmental policy."

Councillor Ray Theodoulou, (Cons, East Cotswolds) chairman of the pension committee which manages the scheme, said: "We invest in legal companies which provide the best value for taxpayers and pensioner's money.

"If the money put aside in the pension fund to pay for employees pensions isn't enough, council taxpayers have to make up the difference.

"Investments are made in line with the advice of professional investment advisers. I have no intention of changing to a situation where investments are made in line with the political views of individual councillors."

The fund performed badly last financial year, falling in value by 22 per cent to be worth £738 million in March 2009. Its value has since recovered and at December 31 2009 was worth £976 million.

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  • Profile image for This is Gloucestershire

    by Severnsider, Severnside

    Saturday, February 27 2010, 11:33AM

    “John Doherty wrote 'Fools are commanding high prices in the fools market where I would trade both of you before a sudden decline in value after you entry through the door'.

    In doing so, he demonstrated that his logical skills are only surpassed by his grammar, as he is suggesting here that Observer and I would represent bad investments in said market. It takes a fool to know a fool, after all - and Mr Doherty appears to be amply qualified in this regard, if in no other.”

  • Profile image for This is Gloucestershire

    by John Doherty, Gloucester

    Saturday, February 27 2010, 10:59AM

    “Anon Fod; You express my sentiment exactly. Who cares where the pension fund is invested so long as they don¿t cry when investments fluctuate as they naturally do from time to time
    Severnsider Let me assure you I could buy you and Observer before breakfast and sell both of you 40 times over before lunch and make a handsome profit. Fools are commanding high prices in the fools market where I would trade both of you before a sudden decline in value after you entry through the door.
    Anon Fod; You express my sentiment exactly. Who cares where the pension fund is invested so long as they don¿t cry when investments fluctuate as they naturally do from time to time
    Severnsider Let me assure you I could buy you and Observer before breakfast and sell both of you 40 times over before lunch and make a handsome profit. Fools are commanding high prices in the fools market where I would trade both of you before a sudden decline in value after your entry through that door.”

  • Profile image for This is Gloucestershire

    by Anon, FoD

    Saturday, February 27 2010, 10:46AM

    “Severnsider, I still say Arms Trade as its one of the Counties Industries employing many people (most live in the County and Pay Local Taxes) so why shouldn't the Council invest in them? After all if its ethical too allow the Defence Industry to be based in the County, its got to be ethical Investing in these companies..”

  • Profile image for This is Gloucestershire

    by Severnsider, Severnside

    Saturday, February 27 2010, 10:30AM

    “A rather predictable bunch of brainless green-ink comments, enlivened only by the pithy intervention of Observer from Cheltenham, who appears to have eaten John Docherty for breakfast here :-)

    The reason why Glos council pensions should be handled ethically is quite simple. It's called 'Corporate Social Responsibility' and it's something you won't find tobacco companies investing any real time or money in. Other public and private sector pension holdings do venture into ethical investment, and the direct financial returns are no less. As for the indirect returns, they are far greater.”

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    by Anon, FoD

    Saturday, February 27 2010, 9:56AM

    “Who cares where they put Money for investment, as long as they don't expect the Tax Payer to bail them out.

    Fags are a better bet that Icelandic Banks maybe they should also look at the Arms trade that always does well..”

  • Profile image for This is Gloucestershire

    by John Doherty, Gloucester

    Saturday, February 27 2010, 8:26AM

    “Observer Cheltenham; You have ¿Blown Your Own Cover¿ With this Statement that Paddy is a Racist Word. Political correctness is making a mockery of the law by using it to ban many time-served expressions of affection. "Old John had to miss the game." - even though in this context old may be suggesting a close long-time friendship. "I'll see what the old man says about it." - even though this refers to the boss, a person who may enjoy this expression recognising his seniority. "I'll get Tom some help, he's not a spring chicken anymore." - even though this might be caringly recognising an actual limiting factor. "I say old boy, wasn't that a great show!" - even though this may be expressed as a term of equality, brotherhood and affection. All my school chums have always been "old boy" to each other, but not anymore. Observer I guess belong in the same company as Harriet Harman who deprived the British People of a once wonderful sense of humour and when on subject equality perhaps you might care to explain why Harriet Harmans ¿Old Man¿ deprived a woman of the Erdington Labour Seat. Observer you feel for that of mine ¿Hook Line And Sinker¿ Oh sorry that word is now banned by Nu-Labour Too.”

  • Profile image for This is Gloucestershire

    by Observer, Cheltenham

    Saturday, February 27 2010, 2:24AM

    “I am aware of Adam Smith and laissez-faire economics. I am surprised you didn't mention his other book "The Theory of Moral Sentiments" in which he described the unintentional effects of economic self organization from economic self interest. That said economic theory has moved on a bit since 1776.

    Slavery was abolished in 1833 and nowadays statements like "I am not Irish. Are you a Paddy?" are considered racist.

    You may have the last word, I think racism is beyond contempt.”

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    by John Doherty, Gloucester

    Saturday, February 27 2010, 1:47AM

    “Observer, Cheltenham In your latest blog ¿Well that's not certain knowledge. It's an opinion isn't it? In answer to you that opinion was correct and better formed after years in Private Enterprise where good business endeavour is based on what Adam Smith Taught. His central theme > ¿Self Interest Restrained by Conscience< I would recommend you read the most influential book ever written ¿An Inquiry into the Nature and Causes of the Wealth Of Nations¿ You have No need to phone the pope as I would not give him a hearing. I am a John Knox protestant believer. Last but not least you have wrongly spelled my name. I am not Irish. Are you a Paddy?”

  • Profile image for This is Gloucestershire

    by Don't get mad get even, Cheltenham (Spa(

    Saturday, February 27 2010, 1:18AM

    “Some of the issues experienced regarding the organisation of the Local Government Ombudsman. They, lie to complainants ~ lie to Government Departments ~ lie to the public ~ collude with councils ~ fabricate documents ~ misinterpret statutes, policies and guides etc in favour of the council ~ manipulate evidence in favour of the council ~ use fallacious reasoning/argument to explain their perverse findings ~ don't allow a complainant to see or challenge much of the evidence ~ manipulate/fiddle their statistics to hide the truth ~ manipulate/fiddle customer satisfaction surveys in their favour ~ are biased in favour of the council ~ don't understand many of the technical and legal issues surrounding a complaint ~ often ignore legal and human rights issues ~ very rarely criticise any council officer for lying or misleading them ~ allow councils to misuse 1974 LG Act part III section 32(3) notices ~ very rarely admit their mistakes ~ often terminate a complaint after a quick telephone conversation with the council ~ are unaccountable ~ are not fit for the purpose ~ constantly raise the level of injustice a complainant has to suffer before they will investigate a complaint ~ often use linguistic gymnastics to evade the truth ~ use delay as a tactical tool to help councils and exhaust other avenues of possible redress ~ attack the complainant for asking a question rather than answering the question ~ misuse their own policy and guidelines ~ ignore natural justice and the law when it suits them ~ misuse discretion ~ are toothless tigers ~ dilute the remedies they recommend after discussion with a council ~ defy logic ~ double and in some cases triple count complaints to artificially boost complaint numbers ~ label complainants unreasonable when they challenge their perverse findings ~ alter deadlines to make it easier for councils to meet them ~ waste taxpayer's money ~ don't meet the criteria for membership of the British and Irish Ombudsman's Association ~ are ineffective in reducing maladministration ~ betray the good citizens of this country ~ are impotent ~ allow councils to swap Ombudsmen but don't allow complainants the same freedom ~ are guilty of mission creep ~ often use argumentum verbosium ~ ignore inconvenient facts ~ have developed a system in which maladministration pays ~ fail to meet complainant expectations ~ often ignore part of a complaint altogether ~ break their promises ~ fail to keep adequate records ~ they give investigators a BONUS if they close a complaint down quickly ~ and most DAMNING OF ALL recruit most of their staff from councils.”

  • Profile image for This is Gloucestershire

    by Observer, Cheltenham

    Saturday, February 27 2010, 1:14AM

    “Well John Docherty, I still think you should get the Public Servants you deserve.

    Nobody forced the Government to pay these salaries or to give the pensions awarded. They were given to compete with industry for staff of the right calibre.

    I was suitably humbled when I heard how you had foregone all those raises. I multitasked and searched in 192.com for the Popes number to see if you could be canonised. Alas he's ex-directory.

    As for " the certain knowledge this country was going to break down under a mass of public debit." Well that's not certain knowledge. It's an opinion isn't it?

    You might think a few choice words such as "probably belonging to the gluttonous bunch living on public money." might intimidate but I think they say more about you than anyone else in this blog.”

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