By Eddie Bisknell

STROUD District Council became the first local authority in the county to call for a freeze to investment in fossil fuels, in a spirited debate which passed by just one vote.

Councillors discussed both the financial and moral implications of investment in fossil fuels on Thursday night.

The vote came down to the Rainbow Coalition versus the Conservatives requiring a deciding vote from chairman Norman Kay (Green, Nailsworth) to tip the scales 23-22 in favour.

The proposal will now be passed to Gloucestershire County Council for further action, who have the final say on any changes to the county's pension fund.

Cllr Nigel Cooper (Con, Painswick & Upton), said: “What is proposed is impractical and would end up piling even more misery onto the long suffering residents by increasing council tax or reducing services, or both.”

He cited the 53,000 members of the pension fund and the over 80 participating organisations across the county whose money is invested in the current scheme.

However, Cllr Martin Baxendale (Green, Stroud Valley) who brought forward the motion, claimed it was time to end investment of £110 million of Gloucestershire Local Government’s Pension fund in oil, coal and gas.

He said: “It is going to become increasingly risky way to invest and rightly so for the sake of the planet, it is just the question of having the will to do it.”

Cllr Paul Denney (Lab, Cam West), informed full council: “The problem with this for the fuel companies is that their share value balances on the amount of assets they have and if those become stranded then this would undermine the value of these shares.

“We could carry on with business as usual but increasingly we are deciding not to do this.”

Last year data was published showing that UK local government pension schemes invest more than £14billion in the fossil fuel industry.

The motion proposes an immediate freeze on new investments in fossil fuels and divestment from any business which is involved in the exploration or production of fossil fuels within 5 years.

Cllr Simon Pickering (Green, Stroud Slade), supported the notion purely on financial grounds, stating that with fossil fuel investment there is a far higher ongoing cost, whereas with alternative energies the cost focusses largely on up-front costs.

However, Cllr Brian Tipper (Con, Cam East) raised the issue of identifying companies which are invested in fossil fuels, stating that one in seven companies are supported by the oil industry, such as Disney World, “I hope you will all be very pleased to make kids cry,” he said.

Cllr Doina Cornell (Lab, Dursley), said: “This is very much the issue of the day, 200 years ago we were discussing the economic viability of moving away from the slave trade, we need to make an ethical stand.”

An alternative focus was sought by Cllr Nick Hurst (Con, Minchinhampton), who urged: “We are facing a matter of an £2.5million overspend and that should be the main focus of this council.”

Conservative leader Nigel Cooper further emphasised the negative financial implications stating that a change in investment would alter dividend rates and ultimately the pension fund would lose out.

Speaking after the proposal’s success Cllr Baxendale said: “I am delighted that Stroud District Council has shown great climate leadership and financial prudence by supporting this motion.

“It’s not about the short term returns, it’s about the medium and long term.”