NORWAY - The NOK1.8trn (€221bn) Norwegian government pension fund has come under fire again for its investments - this time over gambling.

Gambling does not enjoy universal approvement in Norway and so remains a government monopoly. However, the state-run pension fund invests close to NOK1bn in companies linked to the gaming industry - mainly in the US and Australia.

Anti-gambling organisations were quoted in the Norwegian daily Aftenposten as being shocked at these investments.

"When we know what a huge social problem gambling is, the fund should have avoided this," Karl Tonny Kvernmo, chairman of the nationwide association against gambling dependency, was quoted.

The investments of the fund are screened by a council on ethics according to criteria set down by the Norwegian government including violation of human rights, contributing to severe environmental damage or the involvement in the production of certain weapons  - but not gambling.

"It is difficult for the state to condemn investments in things which it is producing itself," Christian Fotland, managing director of Oslo-based consultancy Gabler & Partners, told IPE.

However, he agreed that there is a bit of an "inconsistency" in the government's approach on gambling. "If you are a government you should do outside your home country as you preach inside," he commented.

Gro Nystuen, head of the fund's ethical council told Aftenposten that there had been discussions about tobacco investment, which is also not covered under the ethical guidelines, but that gambling was never an issue.

According to the newspaper, Norwegian politicians have promised new proposals to change the guidelines on gambling. But Fotland thinks that the government "can live with being against gambling and still invest in it - as long as it can keep the profit".