Sheffield Council backs ethical pensions investment in vote hailed as “landmark” decision

Green councillors who proposed the motion at a full council meeting yesterday (February 5) claimed a partial victory and called it a landmark vote. However, amendments and voting by the Labour group and LibDems removed parts of the motion that referred directly to any UK involvement in weapons sales to Israel.

Labour, which has the most councillors but no overall majority, abstained and second biggest group LibDems voted against one part of the motion that referred to UK-made weapons in a paragraph stating that “over 46,000 people in Gaza, including 14,000 children, have been killed by Israel, and 90% of homes have been destroyed”.

Another paragraph in the original motion also fell after Labour abstained and LibDems voted against.

It stated: “Stemming from obligations laid out by the ICJ [International Court of Justice], councils and Local Government Pension Schemes (LGPS) must avoid procuring from or investing the funds they manage, in companies that facilitate Israel’s breaches of international law, including arms companies producing weapons used by Israel, companies conducting business activities in the occupied territories, and financial institutions which finance these companies”.

Breaches

The same happened to part of the Green motion calling for councils and pension schemes to avoid procuring from or investing the funds they manage in companies “that facilitate Israel’s breaches of international law, including arms companies producing weapons used by Israel, companies conducting business activities in the occupied territories, and financial institutions which finance these companies”.

A demand that the government “ends all arms trade with Israel; stops supporting its military campaigns in Palestine, Lebanon and Syria; and supports accountability at the ICJ and ICC” was similarly unsuccessful.

Labour and LibDems rejected a paragraph that stated “the UK Government’s military co-operation with Israel means it risks being complicit in war crimes, including genocide”.

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Amendments to the motion by Labour repeated condemnation of “the attacks on, and displacement of, Palestinian civilians” and said “the ceasefire now needs to be the path to lasting peace and a two-state solution with viable and secure Palestinian and Israeli states”.

It also supported action taken by the government to review arms exports and suspend sales that could be used to breach international law, and urged a thorough assessment of all remaining licences and the suspension of any that run that risk.

Another Labour Party addition noted “that pension investment should be made ethically, notes that the South Yorkshire Pensions Authority (SYPA) considers environmental, social and governance issues as part of their investment decision-making process, and encourages all members of SYPA Board to continue using their positions to ensure pensions investments are made responsibly”.

Questions

Sheffield Lord Mayor Coun Jayne Dunn currently represents the city council on the South Yorkshire Pensions Authority, which she also chairs. The authority oversees the pension fund for thousands of current and retired local authority workers.

Several members of the public who have been campaigning on the issue asked questions about pension authority divestment from companies connected to Israel and the arms trade. They also raised the question of the council’s banking contract with Barclay’s, which is also the target of divestment calls.

Campaigners argue that Barclays is acting unethically by investing extensively in companies whose weapons, components and military technology are being used by Israel. The bank is also named as a key dealer in Israeli government bonds, which campaigners argue help to finance its military actions.

Council leader Coun Tom Hunt said that the council is currently reviewing its ethical investment policies, when all such issues will be considered.

Green Coun Martin Phipps called for the Green Party motion to be brought forward in the agenda to ensure that it could be fully debated as so many members of the public had expressed an interest. It was put to the vote but failed.

That meant the motion remained in the part of the agenda after a 5.30pm ‘guillotine’, where motions and amendments were put forward formally and voted on with no speeches allowed.

‘Shame’

There was anger from the public gallery and shouts of “cowards” and “shame”. Coun Dunn, who chaired the meeting in her role as Lord Mayor, asked for quiet from the public several times.

The motion, as amended, was passed unanimously.

Coun Paul Turpin, who proposed the motion, said following the meeting: “While we are disappointed that the full text of our motion did not pass it’s still a huge victory for campaigners and vindication of Sheffield Green Party’s principled position in defending international law, the rights of Palestinians and seeking an end to the genocide.

“This vote marks a small step on the road to justice and equality”.

His seconder Coun Toby Mallinson said: “This month Sheffield will welcome a delegation from the Palestinian city of Nablus with which we recently entered into a friendship agreement.

“As part of the steering committee of the Sheffield Nablus friendship group, I am really looking forward to welcoming the delegation and strengthening ties between Sheffield and Palestine, in solidarity with its people who are facing the threat of continued genocide; contending with Israel’s cruel system of apartheid, occupation and ethnic cleansing inflicted with the support of western governments.”

Coun Hunt referred to the Nablus visit yesterday and said that the Lord Mayor is hosting the visitors in Sheffield Town Hall during the trip. The council last year signed a friendship agreement with Nablus, which is on the West Bank of Palestine.