Paschal Donohoe (Dublin Central, Fine Gael)

Let me begin by emphasising Ireland's absolute respect for international law. Our view is that this is at the core of our foreign policy. I emphasise our track record in what we have done and what we have called for on behalf of the people of Gaza. Let me make the Government's stance really clear. We condemn Israel’s illegal annexation of the occupied Palestinian territories and we condemn the catastrophic humanitarian situation arising from Israel’s war in Gaza. That is why we have taken an active role in the preparations and conduct of the forthcoming UN high-level conference on implementing the two-state solution. It is why we have pushed for action at an EU level. It is why we have welcomed the announcement that the EU will conduct a review of the association agreement with Israel. This is a step that Ireland and Spain first called for in February 2024. This is an important decision taken through diplomacy and taken in no small part, due to Ireland making the case for international law and our recognition of the suffering of the people of Gaza. In contrast to the interventions we have made in a collective way with many other countries, the Bill represents a unilateral effort to attempt to curtail the ability of Israel to raise financing on the international markets. Let me explain why the Bill does not do that and why the Government is opposing it.

I want to note that the bonds being referred to are not listed on the Irish Stock Exchange. In fact, they are not listed on any EU stock exchange. They are targeted at retail investors who purchase the bonds through promoters based in London, Paris and Frankfurt. While Opposition Members made many general points, many of which I agree with, about the suffering, harm and awful violence being endured by the people of Gaza, the speeches were notably absent on detail regarding the Bill, which I will turn to now. On the point about detail and precision, it is important that we are precise in our language. Let us be clear on the role of the Central Bank. It does not sell or it does not oversee the sale of Israeli bonds. The Central Bank of Ireland does not sell these bonds. This evening, I have heard the Opposition refer to the Central Bank trading them, selling them, dealing them or bonds being sold through it. That does not happen. Its sole role is to assess the bond prospectus in front of it to ensure that it includes all the requirements it is meant to under the EU regulation in this area.

Neither the issuer - in this case the State of Israel - or the financial products - in this case the Government bonds - become regulated or endorsed as a result of this assessment. They are the facts.

I will move on to deal with some issues relating to the Bill. I will go through it section by section, which did not happen in any speech made here this evening. Section 4 sets out restrictive measures that may be taken. It is important to note that many sections will not prevent the Central Bank from carrying out its role under the prospectus regulation.

Section 4(c) seeks to provide the means of restricting or prohibiting the Central Bank from fulfilling its obligations under the regulation. However, by seeking to permit the Central Bank to step outside the financial services legislation in the area, I am advised that these measures will be judged to be inconsistent with EU law and therefore subject to legal challenge. I hope the Dáil this evening can appreciate that any attempts by the Government to introduce measures outside the agreed legal framework in the area pose a significant policy risk.

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