Alice-Mary Higgins (Independent) | Oireachtas source

I move amendment No. 7:

In page 13, lines 13 and 14, to delete “with investment management providers”.

Amendment No. 7 seeks to raise the fact that the practice of using external asset managers for State investments has left us open to portfolios where there may be significant human rights and environmental risks. Amendment No. 8 seeks to amend section 9(2)(a)(ii) of the Bill, which currently provides that the authority shall perform its functions in the way that appears to it best calculated to provide a high-quality retirement savings system that is digital by default. My amendment would insert that it must also be an accessible system. It is very important that accessibility is considered and reflected in the design. When we look to the digital divide in Ireland, we know that according to EU figures, almost 40% of the population struggle with basic online and digital activities. Despite all the large tech companies being based here, Ireland has a very high level of digital illiteracy so it is very important that we ensure there is accessibility and we do not by having digital by default end up with a system whereby large swathes of the population who may be those lower earners we hope will benefit from the scheme find themselves disadvantaged.

Regarding amendment No. 7, my concerns, which I have raised with regard to other funds, are around the use of external asset managers. It makes it more difficult to track some of the human rights and equality issues that arise from our investments. I previously highlighted issues relating to cluster munitions, fossil fuel divestment and various other ethical measures. When we use external asset managers, we are one step removed in terms of tracking and ensuring that public moneys or investments that contain large amounts of public money are not contributing to portfolios that carry risks. Regarding the environmental, social and governance, ESG, measures, which constitute one piece, and the legal measures relating to things like cluster munitions and fossil fuel divestment legislation, which are legal obligations of the State, it would be useful to know what the plans are to consider not using external asset managers, which would be my preference, or if that is not considered, what measures exist to ensure they avoid any risk to the State from ESG breaches of international and national law. Amendment No. 8 concerns the issue of accessibility.