Taranaki District Council's investment fund has grown from $88 million to $100 million since the sale of its electricity company in 1997.
A councillor, Michael Self, says the council shouldn't be putting money into what he describes as unethical companies.
A recent list of investments includes a tobacco company, a brewer and the SkyCity casino.
Mr Self says that's hypocritical when the South Taranaki council is promoting smoke-free parks and reduced harm from alcohol.
But the mayor, Ross Dunlop, says what is regarded as ethical is highly subjective.