Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I will start with the issue of the protection of human rights and the environment. A development should not be at the expense of vulnerable communities or the environment. We will work to ensure the bank has a positive impact in that regard.

The bank's environmental and social framework released in early 2016 recognises and makes provision for issues such as climate change, gender, biodiversity, resettlement, labour practices and indigenous peoples. The true test of such a framework will be its implementation. However, it is an important building block and a notable public commitment to which the AIIB can be held accountable.

Regarding measures to combat climate change in particular, the AIIB has an opportunity to make a major contribution. Through its focus on infrastructure, it can lay the foundation for a transition to more suitable, sustainable economic growth. That is particularly important in a region such as Asia, which already accounts for 60% of the world's population. Indeed, every year, the population of Asia increases by 42 million people.

The AIIB is clearly aware of the role it can play in this regard and has committed to being a green bank. It recently released its energy strategy, which promises to uphold the Paris Agreement on climate change and assess its clients in meeting its targets under the agreement. There was also the issue of reporting and oversight. The Government is cognisant of the importance of transparency and openness in the use of Government funding and will endeavour to ensure there is an appropriate level of reporting and oversight. I will consider what the Senators have said.

I wish to clarify the issue of the State being out of pocket by not being a founder member. The State is in no way disadvantaged financially by joining the AIIB now as a regular member rather than having joined as a founding member. Each share in the bank has a par value of $100,000. Ireland would have paid the same amount per share, irrespective of the day on which we joined or our status in doing so. As the Minister for Finance outlined to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach, it is true that had Ireland joined as a founding member, it would have received an additional 600 founding member votes. However, voting rights are not equivalent to shares and do not determine the extent of our financial commitment. In the event that any income of the bank is distributed to members, it will be distributed in proportion to the number of shares a member holds. I will try to ensure that I respond to any questions I am unable to answer or that I have missed on the next Stage.

With regard to Senator Kieran O'Donnell's questions, our shareholding will be 0.14%. A sum of €100 million will be callable but our experience with other financial development banks is that these moneys are never called. While one can never say never, there is some risk but we consider that risk to be negligible. I do not have the answer to the question about becoming a member of the board. Opportunities for Irish companies will most likely be in the services sector. We have a strong service sector in construction in respect of quantity surveying, QS, and civil engineering. The funding streams the AIIB will operate will be similar to the European Investment Bank. Equity funds that are based all over Europe are used to establish the funding requirements of financial development banks of this type. Financial services, QS, and civil engineering would be the likely sources of opportunities.