Future Fund Receives Criticism for Tobacco Investments

Future Fund is under pressure of abandoning its $225-million tobacco investment amidst calls from anti-smoking groups for the government to set more stringent rules when it comes to its assets.

In a move by Senator Richard Di Natale, a bill seeking a ban on Future Fund from investing with tobacco companies has been set in motion. Many advocates including Quit Victoria, the Australian Council on Smoking and Health, and Action on Smoking and Health Australia back the bill.

Quit Victoria’s executive director said that there are concerns the country may be spending huge amounts of money in cigarette companies that are seeking to overturn the law on packaging, design and tobacco consumption.

The investment Future Fund intends to make seems to be in contradiction with the policies of the government.

A spokesperson for the Finance Minister issued a statement regarding this matter. The statement said that the Future Fund board has set an ownership policy that takes into consideration social and environmental issues.

The spokesperson added that the board understand the public’s sentiment and that it continues to develop approaches to the matter.

The value of Future Fund’s current tobacco shares has reportedly increased to 50 percent by February. The taxpayer-owned organization has also made investments with companies selling nuclear arms.

Future Fund has been set up during the Howard government to support future pension liabilities of its public workers.