§ 35. Mr. Fallonasked the Secretary of State for the Environment whether he will introduce legislation to tighten the rules on local authority pension fund investments.
§ Mr. ChopeMy right hon. Friend is concerned about reports that some local authorities invested part of their pension funds in the paperNews on Sunday, which they must have known was unlikely to show a profit. Their decision ignored the interests of their ratepayers, who are required to make good any deficiency in the fund caused by bad investment. My right hon. Friend is considering what steps should be taken to prevent the misuse of pension fund moneys.