Catherine Connolly (Galway West, Independent)
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4. To ask the Minister for Finance further to Parliamentary Question No. 95 of 4 July 2024, the timeline for the NTMA to fully divest from all Ireland Strategic Investment Fund, ISIF, global portfolio investments in companies on the UN Human Rights Council database of business enterprises; the details of the ISIF’s direct investments in companies on the UN database totalling €4.2 million; the details of the ISIF’s indirect investments in eight companies on the UN database totalling €9.4 million; and if he will make a statement on the matter. [15674/25]

Catherine Connolly (Galway West, Independent)
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As the Minister knows, for more than eight years, the UN has maintained a database of businesses involved in specific activities in the occupied Palestinian territories. I followed my original question up with a number of questions. What is the timeline for the NTMA to fully divest from all of Ireland's strategic investment and global portfolio investments on that UN list and the details of ISIF's direct and indirect investments into the companies on same?

Paschal Donohoe (Dublin Central, Fine Gael)
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The Ireland Strategic Investment Fund is a €15 billion fund comprising the discretionary portfolio of €8.4 billion and the directed portfolio of €6.2 billion. It has a double bottom line mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.

According to the most recent NTMA annual report, from inception to the end of 2023, ISIF generated an annualised investment return of 3.1%, or more than €2.3 billion, in investment returns across its portfolio, affecting and supporting 42,454 jobs in the economy. ISIF has complete independence in implementing its investment strategy under the NTMA Acts under an investment committee reporting to the NTMA’s board.

The UN maintains a database of businesses involved in certain specific activities relating to settlements in the occupied Palestinian territories. It was developed in 2020 with an update in 2023.

At the end of 2023, direct investments by the Ireland Strategic Investment Fund in companies on the UN database were approximately €4.2 million in 11 companies and its indirect investments were €9.4 million and included eight companies. ISIF divested from six of these companies, with a total value of approximately €2.95 million, across 2024. The six companies were Bank Hapoalim BM, Bank Leumi Le-Israel BM, Israel Discount Bank Limited, Mizrahi-Tefahot Bank Limited, First International Bank of Israel Limited and Rami Levi Chain Stores Limited. At the time, ISIF determined that the risk profile of these investments was no longer within its investment parameters. The level of holdings at the end of December regarding companies on the UN list was €4.2 million in 11 companies.

Catherine Connolly (Galway West, Independent)
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I thank the Minister. I will look at those figures and I appreciate his answer. I respect the NTMA and the subgroup. I was on the public accounts committee and remember the NTMA's proactive approach to divestment from fossil fuels and to former Deputy Thomas Pringle's Bill. I welcome that, and the NTMA grasped the nettle when the time came.

The Minister listed several Israeli banks and a retail chain. It is welcome that we have divested from them, but we are still investing. In the overall scheme, it is a small sum of money, but we are still investing in companies and banks in territories that are illegally occupied. I want to know the timeline of when we will divest directly and indirectly from those companies, given our stance on Palestine.

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for recognising the work the NTMA has done in this and other areas and particularly the work ISIF has done. The Deputy is familiar with that. I have outlined the divestment that has taken place and it is important for me to emphasise to Deputy Connolly that the operational independence of ISIF is very important to this space. It manages €15 billion of our money, which is invested in jobs in Ireland and contributes to the economic growth and development of our country at a time when we will need new sources of economic investment and growth. It operates independently of me and is well aware of the sensitivity and importance of the investments the Deputy has referred to and, indeed, the questions being put to me.

I respectfully make the case, which the Deputy has already acknowledged, that these investments as a share of ISIF's total portfolio, not to mention as a share of the investment in the overall Israeli economy, are extremely small. However, Deputy Connolly is raising issues of principle and I am aware of the correct and deep concern the Irish people have regarding the suffering of the people of Gaza.

Catherine Connolly (Galway West, Independent)
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In a previous answer, I was told by the former Minister for Finance: "My officials are in contact with the NTMA on an ongoing basis across a range of issues, including those arising from the Illegal Israeli Settlements Divestment Bill 2023." I fully understand ISIF is independent but there is a policy issue in respect of illegal occupation. The Minister admits and accepts there is a country committing genocide and that we are investing in its trading companies. We still have a sizable proportion, albeit not in the overall scheme of things. Direct and indirect, it comes to more than €10 million. To bring home and put focus on what we are talking about, this refers to: the supply of surveillance and identification equipment for settlements; the wall and checkpoints directly linked with settlements; and the supply of equipment and materials facilitating the construction and expansion of settlements. This is the list drawn up by the UN more than eight years ago to say we should not be investing in those companies. I appreciate the Minister is making the case it is a small percentage, but it is morally significant, not to mention the genocide taking place.

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for raising this. While I make the case that the share of the overall portfolio of ISIF's investments is a small one, millions of euro is a lot of money for the Deputy and me. I accept that point.

The Deputy raises very important foreign policy and human rights issues. My Department engages with ISIF and the NTMA on these and other matters. The concerns and issues the Deputy has raised are very well understood.

The Deputy referred to issues of policy. I must emphasise again that, given the scale of the portfolio ISIF manages and how much of our money it manages overall, it is important that I respect and support the independence of the board and the decisions it makes. Divestments have already taken place and the ISIF board will determine what is the right investment in a way that is consistent with our independence and the mandate it has. It is well aware of the issues the Deputy raises and the exchanges the Deputy and I have had on a regular basis on this.