Government criticised over tobacco investments

Victor

Phoenix Magazine actually slates the report (a) Because it lost money (b) because it doesn't detail how the money was lost (c) the only reason they did better than the average stockmarket was because it held a lot of cash (d) the whole Elan debacle and the Elan Chairman being on the NPRF board.

http://home.eircom.net/content/irelandcom/breaking/1309942?view=Eircomnet

Government criticised over tobacco investments
From:ireland.com
Saturday, 30th August, 2003

Opposition parties have reacted angrily to newspaper reports that the Government has invested €17 million of the National Pensions Reserve Fund in tobacco companies.

The report in today's Examiner prompted the Fine Gael Health spokesperson Ms Olivia Mitchell to call for tighter investment guidelines for the Fund to be introduced by the Government.

And the chairman of Ash Ireland Dr Luke Clancy said it was not appropriate for the Government to be holding shares in cigarette-manufacturing companies.

Under legislation the National Pensions Reserve Fund is directed to invest in any companies what will provide a good return for the Government.

More than €8 billion has been invested by the fund and among the basket of shares are pharmaceutical, petrochemical and armaments shares.

According to the Fund's annual report the Government has shares in three companies British American Tobacco, Philip Morris and Imperial Tobacco Group.

Other story: http://www.rte.ie/news/2003/0830/tobacco.html
The report: http://www.nprf.ie/Publications/NPRF_Annual_Report_2002.pdf
Crappy website: http://www.nprf.ie/

Victor

Outside the EU/EEA, Japan (apparently not part of Asia / Pacific) and the USA, the fund has only invested in Australia, Canada, Hong Kong (which, guess what, doesn't exist anymore) and Singapore.

44% of the fund is still kept in bonds or as cash.

Paddy20

Double standards in Government circles Eh. So, whats new. Tobacco products including our Governments supposedly hated cigarettes are now being pushed on third world countries.

So, the National Pensions Preserve Fund is now actually supporting the fact that the tobacco companies are giving away free cigarettes in third world countries so that the "young citizens" will become addicted. Thereby replacing the massive drop off in sales in the western world, where the health risk messages have finally hit home.

P.

Cork

I doubt if the government decides on investments. This is because - we are a small country and the pensions fund has got to be administered indepently of government.

National Pensions Preserve Fund Board was established for this reason.

Should ethics enter their decision making process?

Should our government police the investment decisions of the Pensions Board?

Maybe, new guidelines should be given to theNational Pensions Preserve Fund Board.

Paddy20

Cork,

Yes, yes and yes?..

P.;)

Victor

Originally posted by Cork
Should our government police the investment decisions of the Pensions Board?

No they shouldn't second guess every single decision made. However it is / was policy to only examine shares on their econonic merits. The difference between buying shares in guns and buying shares in tobacco is guns might kill people, tobacco does kill people.