Most say no to tobacco in super funds

By Tamara McLean | March 05, 2008

TWO out of three Australians don't want their superannuation funds to invest in tobacco, even if it returns good profits, a study has found.

But contrary to their wishes, the Cancer Council NSW research also shows nearly one third of funds do hold tobacco shares, while most of the rest failed to respond to questions on the topic.

And only two per cent of funds surveyed had formal policies excluding tobacco industry investments, the study found.

"What is significant about this research is that these superannuation funds have barely considered the issue, treating investment in tobacco companies just like any of their other shareholdings, despite the fact their members are strongly opposed," said lead researcher Professor Raoul Walsh.

The large-scale survey found more than three-quarters of the 3500 Australians randomly questioned thought superannuation fund investments in the tobacco industry were unethical.

Of the respondents who actually had superannuation investments almost two-thirds, or 63 per cent, preferred their funds did not invest in the tobacco industry, even if the investment was profitable.

But in the study, published in the journal Health Promotion International, nearly one-third of surveyed super funds confirmed they held tobacco shares.

A further 58 per cent failed to comment or know the answer, said Prof Walsh, from the Centre for Health Research and Psycho-oncology, a collaboration of the Cancer Council NSW and the University of Newcastle.

"Essentially this study brings to light the fact that almost everyone who holds retirement savings in super funds are likely to be inadvertent and unwilling investors in tobacco companies," he said.

Cancer Council director of health strategies, Anita Tang, said while impressive gains have been made in tobacco prevention, there was still a long way to go when it came to the policies and practices of Australian superannuation funds.

"Any financial gain to the tobacco industry, and therefore investors, is inextricably linked to increased death and ill-health in our community," Ms Tang said.

"We'd like to see Australian superannuation funds and their investors think more carefully about shareholdings in the tobacco industry, as a positive exercise of social responsibility and to realign their practices with the views of their members."

Smoking causes about one-fifth of all cancer deaths in Australia, as well as a range of other diseases.

http://www.theaustralian.news.com.au/story/0,25197,23322155-36418,00.html