David Stanton (Cork East, Fine Gael) | Oireachtas source

On behalf of the Tánaiste and Minister for Justice and Equality, I thank Senator Swanick for raising this matter. The Tánaiste appreciates the Senator's interest in the subject.

As the Senator will be aware, the Courts Service, in accordance with the Courts Service Act 1998, is responsible for the management and administration of the courts and the provision of support services for judges. It is in this capacity that the Courts Services has a role in the management and investment of court funds, which are held in trust by the courts on behalf of wards of court, minors and other beneficiaries. The Office of the Accountant of the Courts of Justice has responsibility for the management and investment of funds. The funds managed by that office are those that are held under the control of the courts and are managed in a fiduciary capacity on behalf of the beneficiaries who include various categories of litigant, persons who are wards of court and minors who have been awarded damages by the courts. The investment committee oversees the implementation of investment strategies. It comprises members of the Judiciary, county registrars, court officers, Courts Service officials and independent external members. The committee is chaired by the President of the High Court. The funds are invested in line with the provisions of the Trustee (Authorised Investments) Act 1958 and subsequent orders. In accordance with that Act and based on independent investment advice, the Courts Service invests a proportion of these funds in equities and shares on a passive basis, which means that the funds are invested, in line with FTSE All-World index, across a very wide range of diversified funds in the best interests of the beneficiaries. As of 12 November 2016, the percentage allocation within the FTSE All-World index to tobacco stocks was 1.51%. The Senator will appreciate that the fund is operated independently of the Department of Justice and Equality and in the best interests of the beneficiaries. The Department has no role in managing or directing investments. It should be noted that court funds are not public funds and are not under the control of the Government.

The Department of Justice and Equality understands that ISIF management and the National Treasury Management Agency, NTMA, board’s investment committee are currently reviewing the sustainability and responsible investment policy to examine the potential of adding to the list of excluded investment categories, so as to consider excluding investment in tobacco companies. This process is expected to be completed by the end of the first quarter of 2017.

In regard to the common investment fund, CIF, the Tánaiste has been informed it holds a small proportion of tobacco-related stocks as part of a dividend reinvestment scheme which gives unit holders, namely, charities, the choice of receiving dividend income in cash or reinvesting back into the fund. The Charities Regulatory Authority has oversight of the CIF, which is independently managed and the Tánaiste has been informed that it is currently reviewing all legacy matters, including those relating to the CIF and ethical indices will form part of that review process.