THE NEIGHBOURING authorities of Dundee and Perth and Kinross—previously at loggerheads over potential boundary changes and the distribution of cities growth funding—are standing side by side on the issue of ethical investment.

Any disagreements of the past were placed firmly to one side yesterday as the City of Discovery’s unease at reaping the benefits of lucrative investments in the multi-million pound tobacco industry was mirrored in Perth and Kinross.

Tayside’s local authorities are currently maximising pension schemes for their employees by investing in the industry, but clearly feel uncomfortable in so doing.

Local authorities have taken a hard line stance against smoking.

However, as they are obliged to seek the best possible financial returns for their employees, they cannot withdraw from investments that could be seen as unethical.

A letter from depute chief executive (finance) with Dundee City Council, David K. Dorward had sought assistance from colleagues in Perth and Kinross.

Mr Dorward explained that local authorities are being forced into a somewhat ironic and uncomfortable position.

“It seems that as a pension fund we are being forced to remain invested in tobacco while as a council we are enforcing stringent policies against smoking,” he said.

In a subsequent letter to Finance Minister Tom McCabe, Mr Dorward said, “This severely constrains our ability to take social, environmental or ethical considerations into account.” Mr Dorward said elected members had been put in an “intolerable position” and demanded a meeting with Mr McCabe.

During a meeting yesterday councillors in Perth and Kinross threw their full, cross-party, weight behind Dundee City Council.