NHS ‘hypocrites’ invest in Diageo

The controversy about whether it is right or sensible for public health bodies to form partnerships with the alcohol industry took a particular turn in Scotland when NHS chiefs were branded “irresponsible hypocrites” for investing charitable donations totalling £250,000 in Diageo, the world’s leading premium drinks business, owning such brands as Smirnoff vodka, Guinness, Gordon’s , Bailey’s and Johnnie Walker whisky.

Brian Adam, the SNP MSP for Aberdeen North, said: “It’s inappropriate and irresponsible for the health service to be bolstering the drinks industry. Having shares in a company like Diageo is hypocritical. There are plenty of other areas which can guarantee a reasonable financial return without damaging society’s health.”

NHS Grampian has an endowment fund which consists of money donated to the trust and left in wills. Cash from it has allowed the trust to buy almost £30 million worth of shares in a host of firms, including Shell and Vodafone.

News of the investment in Diageo coincided with reports of a 65 per cent rise in alcoholrelated liver disease in Grampian during the past five years. The Scottish Executive is trying to curb the binge-drinking culture as hospitals struggle to cope.

Alayne Jones, of the Alcohol Advisory and Counselling Service in Aberdeen, also criticised the Diageo investment. “It is hypocritical. But the problem can only be sorted by the government and Scottish Executive,” she said. “When they stop raking in huge profits from alcohol firms then other organisations might follow suit.”

NHS Grampian said the companies invested in by the endowment fund were carefully selected. “We don’t see the investment as a conflict of interests,” a spokeswoman said. “We have financial advisers who tell us where to invest the money. But we will not invest in arms companies or tobacco firms. But no-one has said that drinking responsibly is bad for you. However, these investments arereviewed all the time so in the future we may think differently about having money in Diageo.”

Tom Wood, who chairs the Scottish Association of Alcohol and Drug Action teams, defended the investment decision. “We’re not anti-alcohol per se,” he said. “We have got no issue with Diageo or other drinks companies, although I might sometimes be critical of the way they promote their drinks.”