Govt tobacco investments under fire

The Government is accused of double standards for investing in tobacco companies overseas, while it encourages New Zealanders to cut back on smoking.

Council for Socially Responsible Investment (CSRI) chairman Robert Howell said today that five crown financial institutions were investing in overseas tobacco companies.

The Labour-led Government has aggressively tried to reduce smoking levels in New Zealand by increasing taxes on cigarettes, advertising campaigns and promoting programmes that help people quit.

Last year it passed laws banning smoking in all workplaces including bars.

The five institutions highlighted in Dr Howell's report include National Provident fund, Earthquake Commission, Accident Compensation Corporation and Finance Minister Michael Cullen's Superannuation fund.

National Provident is also understood to be investing in a company operating in Myanmar.

Many governments -- including the United States -- have imposed trade and investment sanctions on the country's military regime in a campaign to press for democratic reforms in the Southeast Asian state.

Earlier this year, Dr Howell wrote to all crown financial institutions asking them for a list of companies they invest in, those they have excluded from investment, and their policies and how they implement these.

The results of his research were released at a CSRI "Reward, Risk and Reputation" seminar in Auckland this morning.

He has said he wants ethical guidelines to be strengthened to remove such companies off the Government's "okay to invest in" list.

Dr Howell is encouraging New Zealanders to think about government investments, and decide whether they think such investments are acceptable.

CSRI is a non-denominational charitable trust which promotes ethical, sustainable investment, and helps people and organisations to develop guidelines, investments and methods for socially responsible investment.

ACC said today it does not have any "direct internally managed investments in any tobacco companies" but said it does invest part of its funds through overseas external fund managers.

In a media statement, the Chairman of the Board of ACC said the agency was reviewing its investment instructions to external fund managers in relation to any indirectly managed investments in tobacco companies.

- NZPA