Dáil Éireann Debate, Tuesday - 27 June 2023
233. Deputy Matt Carthy asked the Minister for Finance the guidance provided to the Ireland Strategic Investment Fund regarding industries, sectors or otherwise, which it is prohibited from investing in; and if he will make a statement on the matter. [31243/23]
Amharc ar fhreagra234. Deputy Matt Carthy asked the Minister for Finance if the Ireland Strategic Investment Fund has invested in companies which operate and derive income from the Occupied Palestinian Territories; if such is consistent with the Irish Government policy of distinguishing between the territory of the State of Israel and the territories of the State of Palestine occupied by the State of Israel since 1967; and if he will make a statement on the matter. [31244/23]
Amharc ar fhreagraI propose to take Questions Nos. 233 and 234 together.
The Ireland Strategic Investment Fund (ISIF) portfolio is constructed within the legislative framework set for it by the Oireachtas. ISIF endeavours to be a responsible investor, actively integrating ESG factors into its decision-making processes with a view to enhancing the overall outcomes for the Fund and ultimately its beneficial owner.
In this context ISIF operates an exclusion policy which is consistent with its statutory mandate, as amended from time to time. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation (such as the Fossil Fuel Divestment Act 2018 or the Cluster Munitions and Anti-Personnel Mines Act 2008) and, inter alia, exclusions on sustainable investment grounds including Tobacco and Nuclear Weapons.
The NTMA Annual Report for 2021 discloses ISIF’s shareholdings, as at end-2021, in 9 companies which appear on the UN Human Rights Council Database of business enterprises involved in certain activities related to the Israeli settlements in the Occupied Palestinian Territory (published by the UN Human Rights Council in February 2020, A/HRC/43/71). The NTMA will publish an updated list of all ISIF holdings as at year end 2022 in the NTMA Annual Report for 2022, which is due to be published shortly.
The Illegal Israeli Settlements Divestment (Private Members Bill), 2023 seeks to amend the National Treasury Management Agency (Amendment) Act 2014 to have ISIF divest from companies named in a UN Human Rights Council Database published by the UN Human Rights Council on 12 February 2020, A/HRC/43/71). The proposed Bill would have the effect of preventing ISIF from being able to invest in any company on that database and that NTMA/ISIF would not also be able invest indirectly in any company which is on the UN database.
It is important to understand the Government’s policy position with respect to Israel and the Occupied Territories. Ireland distinguishes between the territory of the State of Israel and the territories occupied since 1967, in line with international law. This approach is common across all Government Departments. As part of this approach, Ireland ensures that any bilateral agreements with Israel do not apply to territories occupied by Israel since 1967.
The Government's position on the proposed Private Member's Bill was outlined at the second stage debate. Specific concerns were raised at the debate about the use of the specific UN database as a method for determining investment or disinvestment by NTMA/ISIF in the territories occupied by Israel since 1967.
I am conscious that this is a difficult issue to resolve and that time needs to be devoted to it. It is also the case that any legislation passed by the Oireachtas has to be constitutional and legally sound. Therefore to allow appropriate time to consider implications of the Private Members Bill and explore possible ways to proceed the Government proposed a timed amendment to the Bill of nine months on Tuesday, 16 May and this was subsequently approved by Dáil Éireann.
The timed amendment approach allows time to consider the intent of the Bill further including consideration of other alternative non-legislative based approaches or a combination of legislative and non-legislative based approaches which could achieve a similar outcome.
In light of the Dáil’s approval of the timed amendment as part of the Government’s approach to considering how best to proceed I have written to both the Chair of the Oireachtas Committee on Foreign Affairs and Defence and to the NTMA’s CEO seeking their views on the most appropriate way to progress the broad intentions behind the Bill.
