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We can find peaceful way out of pension black hole
• ISLINGTON Campaign Against Arms Trade members read with dismay about local authorities’ pensions (Pensions muddle, October 24). When we as tax-payers raised objections to our taxes being used via employers’ contributions to invest in arms companies, Councillor Andrew Cornwell and others assured us there was no point objecting since the authority had a legal duty to invest in all sectors of the economy, including arms, to ensure the maximum returns are achieved at the lowest risk to members of the scheme and to achieve best value for all taxpayers.
We disagreed with the view that index-tracking – tracking the companies listed on the FTSE 100 – was the only way to achieve this objective, citing other strategies commonly used by other schemes which avoid arms and take a more responsible, hands-on approach, choosing according to companies’ behaviour, governance and the sustainability over the long term of their growth and profits.
Such funds have avoided losses on Northern Rock because they saw it was neither ethical nor sustainable and did not invest, despite it being a popular investment.
Now it would appear there is a massive shortfall in the Islington scheme and others using the index-tracking “strategy”, which the employer (Islington residents) and members past and present of the scheme must meet. How else can it be met other than through taxation or, more likely, cutting back services, jobs, selling local assets or failing to meet the defined benefits to members?
Perhaps councillors will reason that now would be a good time to invest more in arms since banking is no longer profitable and there is now a good opportunity to profit from an increase in arms just as there was after the last global stockmarket crash in 1929? This is why we should all take an interest in how and where these funds are invested.
We would welcome a dialogue on peaceful and sustainable solutions to this issue with our councillors but also with members’ reps Jane Doolan, Vaughan West and TP Luke. We offer our solidarity at this uncertain time for pension scheme members and, as concerned taxpayers and service users, wish to be part of finding a peaceful way out of this funding black hole. One which moves away from the amoral “the stockmarket is always right” approach that led us to the current situation, where services, public assets, jobs and pensions are now under threat.
Rachel Cavill
Campaign Against Arms Trade
Goodwin Street, N4
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