"MAYOR'S PENSION FUND INVESTS IN ARMS FIRM" - TUFFREY

4.50.08pm BST (GMT +0100) Wed 13th Sep 2006

Research by the London Assembly Liberal Democrats has revealed that the London Pensions Fund Authority (LPFA) has been investing in tobacco and small arms companies.

The LPFA covers pensions for 73,000 staff including the Mayor, GLA Staff, former GLC staff and agency administration contracts including a number of London borough councils.

Funding decisions at LPFA are taken by the fund managers, overseen by the LPFA board, which is appointed by the Mayor. The Mayor and the LPFA are currently working together to develop strategies on responsible investment regarding climate change, but there are currently no exemptions to investment in tobacco or arms companies.

Commenting, Liberal Democrat Group Leader on the London Assembly, Mike Tuffrey, said:

"Many of our staff at City Hall would be amazed that by day they are out promoting the health and well-being of Londoners whilst their pension fund money is helping to kill people.

'The Mayor claimed he has no powers to instruct which companies the pensions fund invest in, but as the person makes the appointments to the Board, if anyone has a say, it's him. In fact is the board's vice-chairman not the Mayor's old GLC chum, Mike Ward?

"Why has it taken the Mayor six years to wake up to the evidence that his pension fund is investing in unethical companies? Perhaps he should be taking an interest in the matters that directly affect Londoners instead of pretending to be an oil trader".

ENDS

Notes to the Editors

1. The London Pensions Fund Authority is one of the UK's largest administering authorities of the Local Government Pension Scheme, with a Fund membership of 73,000, including over 220 employing authorities and assets of over £2.7 billion (at September 2003). LPFA also operates agency administration contracts covering over 120,000 scheme members. The LPFA was established in 1989 as a stand-alone public body, to take over the running of the former Greater London Council (GLC) Pension Fund following GLC abolition on 31st March 1986. LPFA is also responsible for the residual employer functions of the GLC, Inner London Education Authority (ILEA) (abolished on 31st March 1990) and the former London Residuary Body (LRB).

LPFA also carries out third party pension administration and other LGPS services. Currently LPFA carries out administration for Bexley Council, Brent Council, London Borough of Hackney, Hammersmith & Fulham Council, London Fire and Emergency Planning Authority (LFEPA), London Borough of Newham, London Borough of Hounslow and Westminster City Council

2. Tobacco companies include British American Tobacco and Imperial Tobacco Group. Arms manufacturers include Boeing, EADS, BAC Systems, Rolls Royce, Northrop Grumman and Finmeccanica

3. Following an exchange with the Mayor today at Mayor's Question Time, the Mayor agreed to see if the pension funds can be invested in other companies excluding arms traders and tobacco companies