A new policy managing billions of pounds on behalf of 153,000 people across Merseyside has been brought forward.
But the policy has been criticised by some for not going far enough following a pressure campaign in relation to the Israel-Palestine conflict.
At a pensions committee meeting on July 31 held at Wallasey Town Hall, councillors approved a new responsible investment policy which will oversee how the Merseyside Pension Fund manages where it spends its money going forward.
A working party was set up at the end of 2023 to oversee this going forward which was described as "a positive step forward."
The pension fund as of March 2023 has £10.4bn in assets and invests on behalf of all local authority employees across Merseyside with around 153,000 members. The new policy said it would help "to ensure that investment operates consciously of the world around it, both natural and human” but also "consider and think long term and invest with future decades in mind."
The fund and councillors have seen protests over investments intensify due to the recent conflict in Israel and Gaza and claims money from the fund is funding arms companies supplying the Israeli military. In a public question, Greg Dropkin asked the committee to divest money he claimed to be at least £65m.
During the debate over the policy, Green councillor Jo Bird said pension members needed to be asked for their opinion, adding: "I think there's a disconnect between the pace that members want to see progress on this and the pace that officers and maybe members of the committee want to see progress."
However other councillors said they had only received 40 letters from members on the issue out of 153,000 and it was their job to make sure the pension fund remained stable going into the future. Conservative councillor Jeff Green said: “You can say it’s your opinion but you can’t talk as if you have some solid background of information to make that claim.”
Councillor Tony Cox said: "I know there are those that believe some sort of guillotine can come down overnight,” adding: “It’s just not straightforward and I think we need to take a bit more of an adult approach to our investment strategy as a whole."
The Greens faced criticism during the debate from all the other parties with an amendment they put forward being described as confusing, unnecessary, vague, and impractical. The amendment which was voted down called for a report on investments to come forward when a court finds "there is or may be breaches of national or international law with large scale fatalities."
Labour councillor Mike Sullivan said: "We have got a duty. We all agree on what is going on in Gaza. What Hamas did wasn’t in a vacuum. It’s been going on since 1948," adding: "Now you are jumping on your high horse and making very cheap political points over people’s lives.” He said the issues were covered by the policy.
He said they had a duty to protect the fund, adding the Greens were making “ridiculous suggestions that we should be canvassing 153,000 people,” adding it was “quite ludicrous and I am sick and tired of it.”
The protesters were heavily criticised by Labour and Conservative councillors too. Councillor Brian Kenny said they had received an email that morning that linked a recent mass stabbing in Southport to the situation in Gaza, adding: "I think that's disgusting. I think that is absolutely disgusting."
The events in Southport on July 29 resulted in the deaths of three children and eight children and two adults are currently being treated in hospital. Cllr Green similarly criticised disruption that took place during a minutes silence to those affected in Southport.
Later on in a debate about a climate change investment policy Cllr Bird appeared to refer to criticisms from councillors earlier. She said: “We do find sometimes in this council chamber that even when the evidence is compelling, some councillors can’t address the issues and resort to dismiss, divert, deny, and make petty and personal attacks and accusations.”
The net zero investment targets put forward were approved by councillors with praise given for the policy’s detail. This looks to reduce the pension fund’s impact on carbon emissions by 50 by 2030 and stick to the goals of the Paris Agreement.
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