Councils throughout East Sussex are campaigning against smoking, particularly by children who may become addicted.

Yet the East Sussex pension Fund has shares worth more than £2.5 million in major tobacco companies.

The pension fund includes all the main councils in the area and more than 40 other voluntary and public organisations.

Pension funds are there to make the best possible return on cash which has been invested by employees and employers.

The East Sussex fund, like all others, has principles about investing in firms which pursue ethical policies and preserve the environment.

Although smoking is not illegal, investing in tobacco companies is a direct contradiction of the health policies adopted by most, if not all, the organisations involved in the pension fund.

They should make a stand against investing in tobacco companies as the issue is clear cut. But it is much less obvious with other companies.

Some campaigners would like the pension fund not to invest in any company producing arms, yet Britain and many other countries say they need them to defend themselves.

The Swiss-based giant Nestle is accused by many of pushing baby milk in the developing world in contravention of world health guidelines, something the firm denies.

Councils should keep an eye on pension funds to make sure they are not being flagrantly unethical. But if they bar every company each councillor dislikes, they may be left with almost nowhere for investment.