Avon Pension Fund will meet on Friday 28th March to debate divesting from aerospace and arms companies which supply Israel.
A Palestinian flag flies at a protest outside Keynsham Civic Centre | Photo © John Wimperis
The body which runs the Local Government Pension Scheme in the West of England promised in December that it would look at divesting money which campaigners have warned is invested in companies profiting from breaches of international law in Palestine.
Protesters presented it with eight petitions at its meeting on 13th December, and Bristol City Council has since also passed a motion calling on the fund to divest from all arms companies.
Now the pension committee has said it will meet to review these investments, following “significant work” on the issue, on 28th March.
Chair of the Avon Pension Fund Committee councillor Paul Crossley (B&NES: Southdown, Liberal Democrat) said: “The petitioners approached the issue from various angles, showing concern for people affected by conflict.
“We need to gather further legal and financial advice to help us develop the available investment options.
“The committee are keen to understand our members’ views on these important investment choices. In the March committee meeting we’ll publicly consider the legal, financial and other implications of our options around remaining invested in, or divesting from, aerospace and defence companies.”
The £6 billion fund said it currently has £18 million — 0.3% of its total assets — invested in such companies, which it said primarily supply NATO partners and the UK government.
At the meeting in December, Dr Eldin Fahmy told the committee: “Avon Pension Fund is funnelling taxpayers’ money into companies aiding or profiting from very serious breaches of international law.”
He added: “This is not just a political choice. It is a matter of good governance for the fund.”
Mr Crossley said at that meeting that the process the committee had to follow would take time, but said: “We will be expediting that process as quickly as possible.”
He added: “From my own personal point of view, I have visited Palestine twice and have seen many of the issues that people have raised here.”
Avon Pension Fund runs the Local Government Pension Scheme for 140,000 members who work, or worked, for over 450 organisations in the West of England.
The fund is administered by Bath & North East Somerset Council, with representatives sitting on the committee from the three other local authorities of the former county of Avon: Bristol City Council, North Somerset Council, and South Gloucestershire Council.
Part of the reason the fund invests in arms companies, is that rather than having directly purchased shares in arms companies, the Avon Pension Fund’s investments are part of a passive equity pool, a financial product splitting money across thousands of companies.
The Avon Pension Fund has made major efforts to be green and chose the pool to invest in because it is aligned with the 2015 Paris agreement on reducing greenhouse gas emissions.
The 28th March meeting of the Avon Pension Fund committee is currently scheduled to be held at 10am in the council chamber in Bath Guildhall.
John Wimperis, Local Democracy Reporter
