THE Town Hall’s ethical investment policy has come under fire from anti-arms trade campaigners, who have urged it to sell its shares in a company that makes parts for military aircraft.
Camden Council has shares worth more than £800,000 in GKN, which supplies aircraft and aircraft parts used by Indonesia and by the Turkish government against Kurdish separatists. Town Hall officials say it is up to the government to legislate against unethical business.
A Town Hall press official said: “We believe that using our rights as shareholders, with our fund managers, to promote corporate social responsibility and high standards, is generally a better approach than placing restrictions on particular types of investment.
“Should the activities of companies include the supply of arms as part of their business, it is more appropriate that these are controlled by government export licences rather than trying to use ad hoc regulation by shareholders.”
But a spokesman for the Campaign Against the Arms Trade said: “GKN makes components used in military equipment used by repressive regimes.
“It’s not good enough for them to say it’s up to the government to withhold export licences. The government grants export licences to all kinds of people it shouldn’t and individuals and organisations need to make their own moral choices about these investments.”