Agenda item

To receive the following petition for which notice has been received in accordance with Standing Order 66:

Call on Brent Council’s Pension Fund to Invest not Divest

6.1      Presentation of a Petition – Invest not Divest

Councillor Muhammed Butt (as Chair) welcomed Karen Flaum to the meeting, who had been invited to speak in support of a petition containing 179 signatures calling on the Council to reject a petition presented to the Council on the 19 September 2024 by the Brent and Harrow Palestine Solidarity Campaign regarding divestment and requesting that the Council instead maintain its investment policy rather than divest.

In thanking the Chair for the opportunity to address the Committee in presenting the petition, Karen Flaum began by advising that the petitioners were calling on the Council to reject the petition presented by the Palestinian Solidarity Campaign (PSC) on 19th September 2024 on the grounds that the determination of foreign policy was the responsibility of the UK government. The petitioner questioned whether a local council possessed the necessary tools and systems to make accurate judgements on complex foreign conflicts, particularly in relation to the Middle East with the Councils focus therefore in determining local policies on good governance, in accordance with the powers conferred upon it by UK legislation.

In further support of the petition, Karen Flaum referenced decisions made by Hackney Council’s Pension Committee in July 2024 who had rejected the Boycott, Divestment, Sanctions (BDS) movement and Islington Council’s Pension Committee who had advised against divestment targeting Israel with both Committee’s having found such actions to be divisive, unlawful, and expensive and involving a risk of significant financial detriment and likely to involve a costly process of consultation with Fund Members, who were likely to have strong opinions on both sides.  The petition presented to the September 2024 Council meeting was also felt be contrary to the fiduciary duty to ensure that Pension Funds were properly managed and free from political views and influences. Reference was made to Section 17 of the Local Government Act 1988 and the Public Contract Regulations 2015 which stated that a decision not based on financial, or investment reasons could result in the council facing a judicial review challenge, posing financial and reputational risks to the Pension Fund and Council.

The petitioners also highlighted that failure to have due regard to the propensity of boycotts and divestments that were seen to promote hostility and persecution of Jewish Faith would be contrary to the Public Sector Equality Duty under Section 149 of the Equality Act 2010.  On this basis, Karen Flaum advised that the petitioners had felt the petition presented to the Council meeting in September 2024 to be misleading, divisive and anti-semitic including false allegations against Israel.  As an example it was pointed out that the International Court of Justice in January 2024 had not ruled there was plausible evidence that Israel was causing genocide.  The court had ruled that Palestinians had a plausible right to be protected from genocide on the same basis all citizens.  It had not decided that there was plausible case with the petition presented by the Brent & Harrow PSC, it was also pointed out, having omitted reference to the genocide and the abduction hostages carried out by Hamas on 7 October 2023 and led to the current conflict.

Karen Flaum also took the opportunity to highlight the rise in anti-Semitism across the UK since 7 October 2023, which it was felt the same PSC petition being presented to Council’s across the UK had reinforced, creating discord and division with many Jewish schools (as an example) including those in Brent now requiring additional security and an attack ,during the PSC’s week of action, on a JFS school bus which left pupils traumatised.

As a result, Karen Flaum advised that the petitioners were calling on the Council:

• To ensure that Brent Council’s Pension Fund Sub-Committee invested in any company worldwide to obtain the best possible return on those investments for the benefit of Brent Council’s pensioners.

• To act in the best interest of the safety of all Brent’s pupils, both inside and outside of their schools.

• To act in accordance with its equity, diversity, and inclusion strategy for 2024-2028.

• To honour the words of the Mayor (Councillor Tariq Dar) expressed at the 19 September 2024 Council meeting in seeking to ensure that Brent remained a harmonious, inclusive borough where people of all faiths, no faith, and all ethnic backgrounds could live in peace and cooperation, as obligated by the Equality Act 2010.

In concluding the presentation, Karen Flaum therefore urged councillors and officers to prioritise local issues over global ones emphasising that the Council’s focus should remain on addressing key issues impacting residents of the borough, such as housing and the highways infrastructure and on the interests of members of the Brent Pension Fund.

Having thanked Karen Flaum for presenting the petition, the Councillor Muhammed Butt then invited Councillor Milli Patel, as Vice Chair and Deputy Leader and Cabinet Member for Finance and Resources, to provide a brief response.

In responding, Councillor Milli Patel began by highlighting that Brent Council took its responsibility to invest the pension fund ethically with the utmost seriousness. In terms of the actions being sought within the petition, the opportunity was taken to outline the way in which the Council was already seeking to deliver an ethically responsible Pension Fund investment strategy.  Whilst working hard to deliver this approach it was pointed out this also needed to be balanced against a fiduciary duty to ensure the fund performed well, providing long term stable returns for the scheme members who relied on it with it emphasised that pension funds needed to work harder than ever, given the heightened market volatility in the global economy, to seek out stable and ethical investments.  The Cabinet Member acknowledged the urgent need for a fair and equitable transition away from fossil fuels, as well as the moral imperative of moving away from investments in arms companies or businesses profiting from human suffering. With an overall value of £1.25 billion, it was noted that the pension fund was responsible for 7,367 active pensioners, 8,454 deferred pensions, and approximately 6,545 current contributors. It was emphasised that regardless of individual political views, it was imperative to ensure that investments safeguarded the security of the fund.

Councillor Mili Patel also referred the petitioners to her previous statement on the matter, which outlined the Council's approach to investments and commitment to conducting a full audit of allocations in line with the UN’s Principles for Responsible Investment. This audit was in progress, and a more comprehensive update would be provided once budget discussions had concluded in the Spring 2025.  At the same time the opportunity was also taken to remind the petitioners of the restrictions on procurement under Section 17 of the Local Government Act 1988 which meant the Council could not exclude potential contractors because of trading connections they may have with particular countries or terrorists.  In acknowledging that this matter was a developing and sensitive issue Councillor Mili Patel ended by affirming the Council's willingness to continue engaging with residents, community groups, and staff to ensure careful stewardship of investments.

In response to concerns regarding the safety of pupils travelling to and from school in Brent, Councillor Grahl (as Cabinet Member for Children, Young People & Schools) provided reassurance that the violent attack on a JFS school bus had been investigated by the Safer Transport Team. The Community Safety Team had requested that the police contact Jewish schools in Brent to ascertain any specific safety concerns with the Council having maintained a close relationship with all schools in Brent, including the four Jewish schools with members pleased to note that there had been no reports of any further incidents involving those schools.

In thanking Karen Flaum for presenting the petition the Councillor Muhammed Butt (as Chair) advised that the concerns raised has been noted with an assurance provided that Council would continue to focus on the need to ensure that any decisions taken in relation to Pension Fund investments remained lawful and in the best interest of the Pension Fund and its members.