Barry Andrews (Dún Laoghaire, Fianna Fail)

I am grateful to Fine Gael for introducing this Bill in Private Members' time. I agree with Deputy White on the contribution made by Senator Boyle on the ethical issue of the National Pensions Reserve Fund when he was a Member of the Twenty-ninth Dáil.

The precedent set by the Government in seeking to withdraw the national pensions funds from companies involved in the manufacture of cluster munitions opens this debate into an interesting but problematic area. In pursuing these ethical goals, all noble, funding could be withdrawn from an unbelievable range of companies. It could be decided that any company operational in or benefiting from state contracts in an anti-democratic state, for example China and what it is doing in Tibet, should be included. Deputy Ó Caoláin raised an interesting point about subsidiary and related companies. How can we monitor, say, a French armaments company which sells other types of equally devastating ordnance?

Independent observers have identified that Barclays Bank closely supports the current Zimbabwean regime through its investment portfolio. The Mugabe regime depends on Barclays, as well as Standard Chartered Bank and Old Mutual Bank for its foreign exchange and survival. If Mugabe does not move out of power, despite the will of the people, will the Government withdraw its funds from Barclays Bank? Again, it is a sensitive issue.

Will we examine those companies which operate in states where democracy is in retreat, as in Russia, China, Iran, Pakistan, Kenya and Zimbabwe, to achieve a high level of ethical investment? I am not criticising the decision to withdraw investment from companies involved in the manufacture of cluster munitions. However, we have created a precedent and a proper debate is needed on future investments. I welcome that the Minister, Deputy Dermot Ahern, has made it become part of the political discourse in a healthy way.

The Irish economy relies to a great extent on investments in Asia and states like Saudi Arabia, a country with no democratic values whatsoever, where the protection of human rights and the principles of democracy are not the first order.

It has been widely recognised that the millennium development goal of 0.7% of GDP from developed countries for overseas aid will not be easily achieved. One suggestion to deal with a possible shortfall would be to have a global tax on the exports of armaments. This would raise funds for the delivery of vital investment for the millennium development goals. I call on the Government to consider taking this suggestion one step further. I acknowledge that the Government has done significant work in this area. It is an example of forward thinking in independent foreign policy and although we are in the EU, we can take the initiative and be an independent voice. That is the reason we became a member of the UN Security Council and we are recognised as having that voice.

We must take this a step further and consider seriously the millennium development goals, identifying the exports and trade in armaments as a sector where we could implement a global tax.

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