A leading city councillor has called for a review into controversial investments made by a pension fund.

The call, by leading Labour councillor Brian Fitch, follows a report in The Argus which revealed the East Sussex Pension Fund invests in companies producing tobacco and arms.

One of the local authorities involved in the pension fund is Brighton and Hove City Council.

Coun Fitch, a member of the ruling Cabinet, said: "I want to make sure the fund withdraws from areas such as tobacco and arms.

"I am calling on council representatives to lobby for a change in policy."

"Ethical investment should be a major part of any pension fund and it is possible to get returns as good if not better than those in notorious companies.

"We should be steering clear of tobacco and arms companies and those which are exploiting parts of the third world.

"The city council uses the Co-Op Bank, which is a shining example of what can be done.

"It is extremely successful and has a totally ethical policy which is well publicised. It also has keen prices."

The report said that while councils in Sussex had led strategies to cut the number of people who smoke, authorities' pension funds still invest millions of pounds in tobacco companies as well as in arms corporations.