State urged to get rid of tobacco shares

THE Government should get rid of its €17 million worth of shares in tobacco firms, the head of the Dáil health watchdog said yesterday.

Despite the cost of tobacco-related diseases and plans to ban smoking in the workplace, the state pension fund continues to invest taxpayers’ money in cigarette manufacturers.

The state agency responsible for investing the €8.7 billion pension fund, the National Pensions Reserve Fund, is ordered by the Government to invest in firms which will deliver the best financial return.

In view of the Government’s anti-tobacco policies, Finance Minister Charlie McCreevy should now order the NPRF not to buy shares in cigarette firms, according to Oireachtas health committee chairman Batt O’Keeffe. It was embarrassing and surprising to see the Government owning the shares, he said.

“Certainly if we are going to issue a health policy that is anti-smoking, then the minister should issue instructions that the National Treasury Management Agency should not purchase shares in these companies.

“At the same time, I think the NTMA should be aware of the direction of public policies and not invest in companies that would be contrary to that,” said Mr O’Keeffe.

Up to 7,500 people die from smoking each year and the treatment of tobacco-related illnesses has cost the state between €500m and €2bn, according to the Department of Health.

The Irish Congress of Trade Unions has also expressed concerns about the continued unethical investments. ICTU development officer Conor Joyce said the ownership of the shares raised questions about the coherence of Government policy.