GLOUCESTERSHIRE County Council has been criticised for the second time this year for the unethical investment of its pension fund.

Figures obtained by the SNJ reveal that the Tory-run authority has £7.4 million invested in the aerospace and defence industry and £41 million invested in various oil and gas firms.

The news comes after it was revealed last month that GCC has nearly £11 million invested in the tobacco industry.

A Freedom of Information request submitted by the SNJ shows that GCC has nearly £1.7 million invested in BAE Systems - which has faced criticism from anti arms trade organisations for selling weapons to countries with poor human rights records including Zimbabwe and Saudi Arabia.

Some councillors are now saying the authority should consider a more ethical investment policy.

Green councillor Sarah Lunnon, who represents Stroud Central, said "GCC's pension fund is a perfect example of a missed opportunity.

"Rather than investing in clean industries and socially beneficial companies we continue to invest in death and destruction.

"Who really wants there retirement funded by child smokers and mine amputees?"

Green party colleague, district councillor John Marjoram (Green, Trinity) called for a debate on issue.

"Serious questions need to asked," he said.

"What surprises me the most is supporting the arms trade.

"There needs to be a big discussion about this because it seems to be going against its ethical policy."

Labour leader Lesley Williams, who represents the Stonehouse ward, called for an ethical investment policy to be adopted.

"The Labour Group believes the fund should be invested in companies engaged in ethically acceptable activities," she said.

"What is acceptable and what is not is a matter for debate and if the public has doubts about any particular company then we will of course look at it."

Money is also invested in oil and gas firms BP, Royal Dutch Shell, Afren and the BG Group and defence companies Meggit, Rolls Royce Holdings and Qinetiq Group as well as BAE Systems.

Defending the investments, GCC said they were acceptable because they provide good value.

The authority's Conservative leader Mark Hawthorne said: "This money belongs to hundreds of council workers and pensioners and is underwritten by the taxpayer.

"Councillors legally have no control of where that money is invested.

"That said, I'm not sure what's unethical about these investments.

"The aerospace and defence sectors provide hundreds of jobs in Gloucestershire and the oil and gas industry provides much of the power and warmth we all use.

"Life in Gloucestershire couldn't exist without it."

The Lib Dem's shadow cabinet member for finance and resources Jeremy Hilton agreed that the investments provided a good return.

"It is important to make sure the money is invested safely and has good returns for pensioners," he said.

"If you started to close down on all sorts of investments you would end up with a pension fund that couldn't afford to pay people back."

Gloucestershire's Local Government Pension fund currently invests £1.385 billion for more than 160 organisations across the county including councils, schools, colleges and police forces.

Stroud District Council last year contributed £2.2million to the fund.

Commenting on the results of the FOI request, the Campaign Against Arms Trade said public money should not be invested in companies which manufacture weapons.
 

In a statement, the organisation said: "We believe that public authority investment funds should not be invested in this dirty, destructive and unethical arms industry, which does not benefit either the UK or the countries they sell to.
 

"We would prefer to see investments placed in more beneficial and ethical industries, especially in the renewable energy sector which can provide high quality employment and help tackle our energy needs.
 

"Gloucestershire County Council should place its investments elsewhere."