Local democracy under attack by George Osborne
investment decisions. George Osborne wants to grant the Secretary of
State for Communities and Local Government the ‘power of intervention’,
meaning they could override decisions made via democracy by local
councils.
At the moment local authorities have the right to divest their
pensions on an ethical basis if they wish. It’s been a part of our
democracy for years and was vital in Britain’s ability to boycott
apartheid South Africa. More recently, councils across the UK have
adopted fair trade principles, and removed tobacco and arms companies
from their investment portfolios in response to local concerns. Councils
have also started to move away from fossil fuel investment.
Currently pension funds rely on companies such as BHP Billiton, Anglo
American and Shell which run huge fossil fuel extraction projects in
the global south. These projects are displacing and threatening to
displace communities in the global south from their land. Some of these
fossil fuel companies have been accused of complicity in human rights
abuses. For instance, BP’s association with the paramilitaries which
kidnapped and tortured union activist Gilberto Torres in Colombia.
In another part of Colombia London-listed mining giants Anglo
American, BHP Billiton and Xstrata operate the Cerrejón mine. It is the
largest of its kind in South America. Indigenous groups, farmers and
trade unions are demanding a halt to the expansion of the mine. It has
displaced huge numbers of people and dust and pollution from the mine
has poisoned water supplies and the air.
Coal mining is having devastating impacts upon people in Indonesia as
well. In Samarinda, East Kalimantan’s capital, major floods have become
commonplace. The surrounding area was largely peat swamp that catches
water but this has been destroyed by mining. Large mining companies such
as BHP Billiton and Bumi own numerous mines throughout the country.
They have been linked to forced displacement, local pollution and
rainforest destruction. Many of the areas with coal mines also have
serious energy access problems and the coal produced does not support
the local people.
