The revelation that a councillor who played a significant role in rejecting a proposal for the Avon Pension Fund to divest from the arms industry is also employed by the Ministry of Defence has sparked controversy. Chris Dando, a Labour councillor for Radstock, is a member of the Avon Pension Fund committee and represents defence sector workers in the Public and Commercial Services Union.
Campaigners have raised concerns about what they view as a clear conflict of interest, given Mr. Dando’s dual roles. However, the head of the Avon Pension Fund has defended the decision, arguing that the MoD’s status as an acquirer, rather than a supplier, of defence products means there is no conflict of interest. Additionally, Mr. Dando’s role at the MoD is not related to procurement.
The Avon Pension Fund, responsible for the Local Government Pension Scheme, oversees the investments of 140,000 members from various organizations in the West of England. Currently, a minute portion of the £6 billion fund is invested in aerospace and defence companies, primarily supplying NATO partners and the UK government.
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The decision not to divest from the arms industry, made during a committee meeting on March 28, has faced criticism from those advocating for divestment. Papers presented at the meeting highlighted potential costs and the exclusion of high growth companies if divestment were to occur.
Mr. Dando’s involvement in proposing the continuation of the fund’s current investment strategy has raised questions about potential conflicts of interest, with campaigners expressing their reservations about his influence on the committee’s decision-making process.
Despite calls for divestment from arms companies supplying Israel, both Bristol City Council and North Somerset Council have passed motions urging the Avon Pension Fund to reconsider its investment strategy.
It’s worth noting that the Avon Pension Fund’s investments in arms companies are part of a passive equity pool, aligned with green initiatives and the reduction of greenhouse gas emissions in accordance with the 2015 Paris agreement.
In response to the controversy, Mr. Dando has been approached for comment. The issue remains the subject of ongoing debate and scrutiny.