Ethical procurement and investment policies

Meeting: 
MQT on 2016-02-22
Session date: 
February 22, 2016
Reference: 
2016/0594
Question By: 
Jenny Jones
Organisation: 
City Hall Greens
Asked Of: 
The Mayor

Question

Will you lobby the Government to drop its plans to fetter the discretion of local authorities and the GLA to exercise their democratic powers in implementing ethical procurement and investment policies on grounds such as human rights and international security issues?

Answer

Answer for Ethical procurement and investment policies

Answer for Ethical procurement and investment policies

Answered By: 
The Mayor

I have no plans to lobby the Government on this issue as I support the approach being adopted.

 

The Government is proposing to make it clear to local government pension funds that, in formulating their investment policies, their predominant concern should be the pursuit of a financial return on their investments, while not pursuing policies which run contrary to UK foreign policy.

I agree with that approach and am of the view that a similar stance should be in place for all investment decisions and procurement processes.

Indeed I directed LFEPA in July of last year so as to enable its trading arm to provide fire consultancy services to Qatar for its proposed underground transport system.

Any other approach runs the risk of imposing arbitrary restrictions on the public sector.