NORTHUMBERLAND Labour councillors have voted down a Green Party motion that would have seen the council encourage the Tyne and Wear Pension Fund to divest from fossil fuel companies by 2030.

The motion, brought by Alnwick councillor Martin Swinbank, said that the pension fund currently has at “least £461m invested in fossil fuels” – although this figure was disputed by the fund in October.

The party said this was 5.1 per cent of its total portfolio and “well above average” for UK local Government pension funds. 

Speaking at Wednesday’s meeting (January 17) of the county council, the Greens argued that the council had already declared a climate emergency and pledged to go Carbon Neutral by 2030. 

Cllr Swinbank said: “2023 globally was the warmest year since records began. 2015 to 2023 had seven of the warmest years on record. CO2 Levels are still going up.

“The pledges through COP to try and meet the 2015 Paris Agreement will lead us to a world which is plus 2.5 to plus 2.9 degrees warmer by 2100. That may seem like a long way off, but a child born today will be 76 then. We all hope to live that long.

“Children born in this county today will be feeling this. What will Northumberland look like in 2100? 

“This motion encourages the pension fund to divest by 2030, going beyond its current target of 2050. Northumberland County Council has declared a climate emergency and our target for the county of Northumberland is net zero by 2030.”

The leader of the council and the Conservative group, Glen Sanderson, gave his councillors a free vote on the issue – but encouraged them to abstain.

He said: “I’m incredibly proud of the work we have all agreed on with the climate change action plan and all the good work we’re seeing across the county with climate change and green policy.

“But, my group feel very strongly that we must not do anything at all that would impact on pensioners or people that will benefit from this scheme. Whatever we agree today will actually not have any bearing at all because the pension fund has its own set of rules.

“For that reason, I expect the majority, if not all, of the Conservative group will abstain.”

Labour leader Cllr Scott Dickinson was more firm in his opposition.

He said: “We can’t do anything that destabilises the fund. It supports thousands of retired workers.

“I’m confident that climate and the impact of the fossil fuel industry is being looked at, but until we see a firm action plan that allows us to move away, we can’t support a motion that wants to accelerate that that potentially at the risk of the fund.”

Conservative councillor Richard Dodd, who is the council’s representative on the pension fund board, said he would not be voting either way – but spoke to defend the fund.

He said: “The Tyne and Wear Pension fund is worth about £12 billion. It invests across the world. 

“This is a transition. We are in transition. There is a plan from Tyne and Wear Pension fund to get to net zero and we are ahead of that curve. 

“I take this job very very seriously. Why? Because this fund has to pay out £30 million a month to ex-employees of this council. 

“I reckon about 25 per cent of Northumberland households rely on that fund. If that fund did not generate £30 million a month, every month, the last port of call is this council and all the other councils – and that £30 million would deplete this council of lots of things. 

“We’re ahead of the game. I just hope that we make the right decisions that protect a lot of people watching and taking a keen interest in their future. The future isn’t oil and gas, but we are in transition.”

The plans were voted down by 16 votes to 10, with 27 abstentions. The majority of Conservatives abstained, while the Labour group voted against it.

Speaking to the LDRS after the meeting, Clr Dickinson explained his decision. 

He said: “We recognise that all pension schemes in time will need to make greener investments. Until a plan is worked up that shows a clear path to that which does not destabilise the Pension fund for workers, we cannot support the motion.

“Today we recognised the investments made by the pension fund in greener alternatives and support their work around the managed change where needed from fossil fuel investments.

"Much of this has already started but it must be in a managed way.

“The reasons were outlined clearly that we agreed with the principles and have shown that in our commitment to Net Zero locally and nationally.

“However the Green Party motion was not an appropriate ask for the council today and we are happy to look at any further work and work cross-party alongside the pension fund to continue this work.”

In October, the Tyne and Wear Pension Fund denied claims from Platform and Friends of the Earth that it had at least £461m invested in oil, coal and gas companies in the 2021/22 financial year. 

At the time, a spokesperson said: “Our own investment managers have confirmed that as of the end of March 2022, our actual holdings in oil, gas and coal companies was £324 million. By 31 March 2023, this figure had reduced to £239 million.”