Local Authorities: Fossil Fuel Holdings

Baroness Jones of Moulsecoomb Excerpts

Wednesday 24th February 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, this is subject to consultation. The Government are not directing local authorities to do anything other than maximise the returns on investments and provide best value from procurement.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, is the Minister aware that, in the past five years, the value of four of the biggest coal companies in the United States has fallen by 99.6% and that many firms have gone out of business? Is it perhaps time for the Government to give local authorities constructive advice on how to divest themselves of fossil fuel holdings that could well crash in the next few years?

[Baroness Williams of Trafford]

My Lords, at the risk of repeating myself—I have said this several times over the last couple of days—if a local authority invests in a company whose share price is dropping significantly, it might be wise, in order to maximise the return for its investors, to invest in another company whose share price is increasing. That is a decision for it to make about its pension funds.