
The Angling Times has published a piece about the EA’s pension investments in the water utilities, based on some ferreting by Feargal Sharkey in his campaign to stop them polluting the rivers. I doubt, however, that ‘anglers are flabbergasted’ over this snippet of financial information. In common with most people, the minutiae of pension fund management passes them by.
It does seem galling that an organisation that is meant to protect the environment from corporate pollution should invest in significant sources of that pollution. Yet this is an issue for all pension holders. Funds must be invested to provide a reasonable pension for its members. Apart from water utilities, tobacco and oil companies are also favourites. The reason is because such companies generate plenty of cash. What they are selling is always in demand. Water companies are a particularly good source of dosh because they have a captive market and no competition. If you fancy an easy number as CEO of a big firm, they’re the employers to plump for. After privatisation by the Conservative government in 1989, they’ve been a gold mine. I once met the retired boss of Anglian Water, a salmon fisherman, who had clearly done well from it. You just have to look at the salaries trousered by the current crop to see that.
The EA pension fund invests in water company bonds rather than shares (except for United Utilities, arch polluters of the northwest), that is they loan money to them, which sounds even worse, especially when you realise that water companies have been borrowing to sustain dividend payments rather than invest in the infrastructure needed to avoid dumping large quantities of sewage into our rivers. Bonds produce a good income which is always needed by pension funds to meet payments.
The EA is not the only outfit to compromise itself. A few years back the Wild Trout Trust handed Thames Water a greenwashing opportunity by allowing it to sponsor the conservation awards. That strikes me as even worse. Then again, it’s a question of money and this never floods into angling conservation coffers.
So in a way we’re all stuck. The nature of capitalism is that the environment plays second fiddle to money, most of which finds its way into the big pockets of people like water company bosses and those with plenty of capital. I don’t think the EA should invest in the water utilities, clearly a conflict of interest. I suspect the EA pension fund trustees are unlikely to see it that way, unless they’re anglers or wild swimmers.
