Published: 02 February 2012
by RICHARD OSLEY

COUNCIL leader Nash Ali has defended the Town Hall’s investment in tobacco firms to boost its pension pot.

Camden has £32.5million invested in the companies.

Cllr Ali (pictured) said on Tuesday: “As a council we do not encourage people to use tobacco and actively carry out work to discourage its use, but like every pension fund across the country we have a legal duty to our members and, in the case of council pension funds, council taxpayers to secure the best investment returns available.”

Cllr Ali, who was asked to comment on the investments during a live webchat hosted on Camden Council’s website, added: “We currently have £32.5m of pension fund money invested with tobacco companies, which represents 3.7 per cent of the total assets of the pension fund.

“This is a large amount, but this is because we have one of the biggest pension funds.

I can see how this could be of concern to our residents and, as someone who is trying to kick the habit, it is a grim investment, but tobacco is a legal product and, in a time of financial pressure for councils, our pension fund should not become a further burden on local council taxpayers.”